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Commonly used Credit Card Terms

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November 07, 2014
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Commonly used Credit Card Terms

credit card terms, credit card debt

Avatar for Keroy King

Keroy King

November 07, 2014
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  2. 3! Credit Card Terms Annual Fee: Fee charged by the

    credit card company to the credit card hold once a year. Some credit card companies do not charge annual fees. Balance: This is what is owed on the credit card
  3. 4! Credit Card Terms Annual Percentage Rate (APR): It's the

    cost of borrowing calculated per year. Example: 3% interest is charged monthly Therefore: 3% x 12 months = 36% annually
  4. 5! Credit Card Terms Cont.... Cash Advance: Withdrawing cash against

    the line of credit on your card. Always has a higher interest rate and no grace period. Finance Charge: Is a fee for the use of credit. It's usually a percentage of the borrowed amount. This is how the lender makes a profit.
  5. 6! Credit Card Terms Cont.... Grace Period: Is the time

    between a charge is made and the finance charge is added to the balance. Usually 20-25 days. Line of Credit: Is the credit amount available to you on the card.
  6. 7! Credit Card Terms Cont.... Transaction Fee: Fees incurred for

    certain transactions 1. cash advance 2. over-limit charges 3. late payment
  7. 8! Credit Card Terms Cont.... Arbitration: This is where parties

    agree to resolve any disputes outside of court. This is a settlement method where all parties involved are bound by the decision of the arbitrator.
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