Annual Fee – A fee that is charged yearly for the maintenance of an account. Many credit cards, however, do not charge such a fee.
Annual Percentage Rate (APR) – The cost of credit expressed as a yearly interest rate.
Available Credit – The amount of unused credit that is available to the credit cardholder.
Balance Transfer – The process of using available credit on one credit card to pay off another with an eye to lowered costs.
Billing Cycle – The number of days in the billing period.
Cardholder Agreement – This lists in detail the Terms and Conditions of a credit card account. Interest rates, fees and other charges associated with an account can be found here.
Cash Advance – A cash loan from a credit card, often obtained through an ATM transaction.
Cash Back — A feature where a percentage of the total amount spent on a credit card over a given period of time is returned to the cardholder,
Credit Line – The maximum amount of money that can be charged to a credit card. Also known as Credit Limit.
Credit Score – A numeric expression of a person’s creditworthiness. Crucial for the approval of loans and issuance of credit cards.
Finance Charge – The fees and other costs charged to a cardholder for using their credit cards
Go-to rate – The interest rate that is charged after the period for the introductory rate ends.
Grace Period – The period of time that usually lasts 10-28 days during which a cardholder is allowed to pay a credit card bill without being slapped with finance and late fee charges.
Interest – The fee for borrowing money, often calculated as a percentage of your balance.
Introductory Rates – Initial lower rates often offered by credit card issuers as promotional offers, which eventually return to the standard rate after a certain period of time.
Issuer – A financial institution that issues credit cards.
Late Payment Fee – A charge that is imposed if payment is received after the Payment Due Date.
Minimum Monthly Payment – The lowest possible amount that a cardholder must pay each month to avoid being declared delinquent.
Opt-in – Authorizing the credit card company to include you in a specific service that they are offering.
Opt-out – Turning down any specific service that your bank is offering.
Outstanding Balance – The total amount owed on a credit card on which interest is charged.
Overlimit – A credit card account that has exceeded its credit limit with a transaction.
Plastic – Slang term often used to refer any type of credit card.
Retail credit card – Also known as a store card, it is a type of credit card that is associated with a retail store, and, more often than not, can be used only at the store that it is linked with.
Overlimit Fee – The fee that is charged when the outstanding balance goes beyond the credit limit.
Secured Credit Card – A credit card that requires collateral before you can receive credit.
Unsecured Credit Card – A credit card that does not require collateral and typically issued to customers based on credit history and financial strength.
This is a guest post from the staff of the credit card comparison site beste kredittkort.