The once-a-year cost of owning a credit card. Some credit card providers offer cards with no annual fees. The annual fee is a part of the total cost of credit.
Annual Percentage Rate (APR)
The yearly interest rate charged on outstanding credit card balances.
For credit cards, balance refers to an amount of money owed. In personal banking, balance refers to the amount of money in a savings or checking account.
A balance transfer is the transfer of or part of the credit card balance to another account at another financial institution. The APR for transferring a balance may be a limited time offer and it may differ from the APR for purchases.
A reporting agency that collects information on consumer credit usage. There are currently three main credit bureaus in the United States: Equifax, Experian, and TransUnion.
The maximum dollar amount that can be borrowed on a specific credit card account.
A financial institution's evaluation of an individual's ability to manage debt. It is necessary to have a good credit rating if you intend to borrow money or have credit cards.
The additional period of time a lender provides a cardholder to make payment on a credit card debt without penalty.
Credit card issuers may offer low introductory annual percentage rates as special promotions. Be sure to fully understand how long the introductory rate will last and what the standard rate will be.
The lowest amount of money that you are required to pay on your credit card statement each month in order to keep the account in good standing.