What Are The Common Credit Card Terms? - Other Questions

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » What Are The Common Credit Card Terms?

What Are The Common Credit Card Terms?

Answered on
Add to Favorites:

In order to be able to effectively manage your credit card accounts, then you must know the terms associated with credit and credit cards. Read on the basic terms a consumer will be dealing with for as long as he or she owns a credit card.

* “Annual Percentage Rate” (APR), or the Interest Rate, is what the credit card owner needs to pay annually. Most credit card companies promise a 0% APR as a form of promotion. This payment is made in addition to other payments made with the credit card.

* The interest to be charged to the consumer is computed using the “Average Daily Balance”. To be able to identify this interest, the Average Daily Balance would first have to be identified, and this is done by dividing the balance in the credit by the number of days in that specific month.

* A “Balance Transfer”, on the other hand, is the activity of transferring the balance from one credit card to another.

* “Bankruptcy” is filed by a consumer who is unable to pay the balances in his or her credit card.

* A “Credit Report” is the report of the consumer’s purchasing activities with his or her credit cards. Each consumer has three credit reports, each from the three credit bureaus. It also contains personal information, identification, payment history, and a lot more.

* “Cash Advance Fee” is the fee the card holder must pay per cash advance. Normally, this fee is greater compared to the rate of interest on purchases. Paying for cash advance fee is common among consumers, because most credit card companies do not allow withdrawals from Automated Teller Machines using their credit cards.

* “Credit History” shows the consumer’s purchasing activities, as well as the remaining balance. Lenders, employers, or any official looking for information and identification about a person commonly looks at that person’s credit history. A credit history can be either good, or bad, and this commonly affects the ease or difficulty with which one can obtain a loan, mortgage, employment, etc.

* “Minimum Payment” is what the consumer has to send to the credit card company, if the consumer’s card record shows a balance. This is usually a very minimal amount, usually amounting to twenty dollars or less.

* A “Rebate / Reward Card” is a type of card that features perks and privileges that the card holder may avail after reaching the minimum of a required purchase amount.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
  • Jazzie30

    Credit cards are both a blessing and a curse. They are easy to use and convenient. Unfortunately, they are easy to use and convenient. What people don’t realize about credit cards is how much a credit card actually costs. They only see their balance and payment information without regard to any other charges or traps. At best, credit cards will cost nothing, especially if paid in full. At worst, credit cards can cost you your entire financial identity and good standing.

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit

Other Questions in
Other