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Credit Cards

TermDefinition
Annual Fee A yearly fee some credit cards charge to all cardholders.
APR The yearly interest rate paid for money borrowed with a credit card and not paid back within the grace period.
Credit Score A score between 300 and 850 that reflects how likely you are to repay what you borrow. Various aspects of your credit history impact your score in positive and negative ways.
Debt Money you owe to a person or entity.
Interest A percentage of money borrowed that must be paid to the lender on top of the initial amount.
Grace Period How long you have to pay back money borrowed on a credit card before it begins to accrue interest, usually about a month.
Minimum Payment The smallest amount you're required to pay back on your debt each month to avoid fees. Paying only the minimum payment means you'll accrue interest.
Principal The original amount borrowed that must be repaid.
Credit Card A card you use to borrow money for everyday purchases and must repay. The borrowed money accrues interest if not paid in full within the grace period.
Created by: user-1996568
 

 



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