1-2-3 REWARDS® Visa® Card

Introductory APR on Purchases. Often a credit card issuer will offer a low or zero percent APR on purchases for a limited time, known as an introductory period. This promotional period may last anywhere from three months to 21 months and will remain in effect as long as all payments are made on time, the credit limit is not exceeded, and all conditions of the card are met. If a customer goes into default, the introductory period will no longer apply. After the period ends, the regular ongoing APR will apply to any balance carried.

Ongoing APR on Purchases. The ongoing APR is the annual percentage rate that is charged on purchases and balance transfers after any introductory offer expires. It may be variable or fixed, and the ongoing APR often varies depending on a customer's credit rating and payment history.

Default APR on Purchases. If you violate the terms of your agreement by making late payments or not making payments at all, paying less than the minimum amount due, or exceeding your credit limit, you may be considered in default and be subject to a default, or penalty annual percentage rate.

Minimum Grace Period on Purchases. Grace periods, or the amount of time you have to pay a balance before interest begins to accrue, are usually 25 days long but may be longer or shorter. Most cards offer a grace period on purchases as long as the account is current and all payments are being made in accordance with the terms and conditions of the account.

Minimum Interest Charge on Purchases. The minimum interest charge on purchases will be charged when there is no grace period or introductory rate that applies. It may be dependent on your APR or it may be a fixed fee and represents the lowest amount you can be charged for interest.

Introductory APR on Balance Transfer. An initial low rate, often a zero-percent rate, will be offered for balance transfers on many credit cards. If payments are made on time then the introductory rate will last for the full advertised amount of time, which may be anywhere from three to 21 months. After the introductory period, the regular APR will go into effect.

Ongoing APR on Balance Transfer. An ongoing annual percentage rate (APR) on balance transfers will apply to any balance transferred from one card to another. If your credit card offered an introductory rate, then once it has expired the ongoing, or regular APR will apply. Credit cards may have a different APR for balance transfer than for purchases; often each card carries a separate APR for cash advances, purchases and balance transfers. APRs for cash advances are always the highest, and balance transfers may carry a lower APR. The terms and conditions on your credit card statement will always list the ongoing APR for balance transfers.

Penalty APR on Balance Transfers. If you default on your credit card by not following the terms of your agreement, a penalty, or default, annual percentage rate may be applied to your account. The regulations for penalty APRs differ for consumer cards and business cards because the Credit CARD Act that went into effect in 2010 does not apply to small businesses. Penalty APRs are usually more than 20 percent and will be applied to the entire balance that is in default. Most credit cards are considered to be in default if the payment is more than 60 days late.

Balance Transfer Fee. A fee charged by a credit card company when you transfer your debt from one credit card or a loan onto another credit card. In many cases this fee is 3% of the balance amount with $5 minimum and $50 maximum. (The minimum is not charged on top of the 3%, instead it will be your total balance transfer fee if 3% of the balance transfer amount is less than $5. If 3% of the balance amount exceeds $50 your total balance transfer fee will be caped at $50.) In some cases it can be a fixed amount, for example: $75. However, it is also possible to find a credit card offer that does not charge this fee.

Introductory APR on Cash Advance. The promotional rate that may be offered on cash advances from a credit card company. Cash advance rate APRs are generally high and most cards do not offer introductory low APRs for them. When a card offers a zero-percent or other low introductory interest rate it will usually apply to purchases and balance transfers but not cash advances.

Ongoing APR on Cash Advance. The Annual Percentage Rate (APR) determines what you will pay in interest fees each month. The ongoing APR on cash advances is always much higher than on purchases and balance transfers, and may be as high as 35 percent. Cash advances begin accruing interest immediately; there is no grace period. Because of this, it's best to avoid using credit cards for cash advances except in case of emergency.

Default APR on Cash Advance. When your credit card is in default, a default, or penalty APR will be applied. Usually there is one default APR for purchases, balance transfers, and cash advances, but some cards may have a different default APR for cash advances which is higher than the one for purchases and balance transfers.

Minimum Grace Period on Cash Advance. During a grace period, no interest or finance charge will be assessed. Grace periods begin when you make a purchase or withdrawal and give you time to pay your balance without a fee. Most cash advances do not have a grace period and begin accruing interest immediately; for this reason it's best not to use credit cards for cash advances except in emergencies.

Minimum Interest on Cash Advance. A cash advance will almost always have a minimum amount of interest charged, no matter how small the withdrawal or how quickly it's paid back. Cash advances usually have no grace period and begin accruing interest as soon as the withdrawal posts to your account. The minimum interest charge is the least amount you will be charged in the event that you use your credit card for a cash advance.

Cash Advance Fee. A fee charged by a credit card company when you use your credit card to get cash advances. In many cases this fee is 3% of the cash advance amount with $5 minimum and no maximum. (The minimum is not charged on top of the 3%, instead it will be your total cash advance fee if 3% of the cash advance amount is less than $5.) If you will use your credit card to send money through companies such as Western Union all your charges will be considered as a cash advance and a cash advance fee will apply. There are no credit cards that do not charge a cash advance fee.

Activation Fee. The activation fee is a one-time charge that some cards carry. It is separate from an annual or monthly fee, which is charged every year or every month. Many credit cards do not charge an activation fee, so look for one without this charge. Prepaid cards and cards for people with limited credit are more likely to carry activation fees.

Annual Fee. Some credit cards charge a fee each year for being a cardmember. The annual fee is often, though not always, waived the first year of membership. It is usually charged each year on the anniversary of the date you got the card. Credit cards that offer high-value rewards and benefits often carry annual fees.

Late Payment Fee. If payments are not made on time, all credit card companies will charge a late payment fee. This fee is often around $35, though it varies from card to card. It may be a flat fee or it might also be a percentage of the total balance. Check the terms and conditions to find out what your credit card's late fee is. Always make the minimum payment on time. If a payment is made for less than the minimum due, the account will be considered past due and a late charge will be assessed.