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credit card vocab
| Term | Definition |
|---|---|
| Annual fee | a yearly, one-time charge imposed by credit card issuers to maintain a credit card account, usually covering premium rewards, travel perks, or cash-back benefits. |
| Annual percentage rate | the total yearly cost of borrowing money, expressed as a percentage that includes both the interest rate and additional fees (such as closing costs, origination fees, or mortgage points). |
| balance transfers | the process of moving high-interest debt from one or more credit cards to a new card, usually featuring a 0% introductory APR for 6–21 months. |
| bankruptcy | a federal legal process designed to help individuals or businesses eliminate or repay debts they cannot afford through a structured court process |
| cash advances | a short-term, high-interest loan that allows you to withdraw cash against your credit card’s credit limit, often via an ATM, bank teller, or convenience check. |
| co signer | a person who signs a loan or lease jointly with another in order to guarantee payment. |
| credit bureau | a company that collects, compiles, and maintains individual financial data to create credit reports. |
| credit card | a plastic card issued by a bank, building society, etc., allowing the holder to purchase goods or services on credit. |
| credit history | a detailed record of how an individual manages debt, including loan/credit card usage, payment punctuality, and total debt owed. |
| credit limit | the maximum amount of money a lender allows you to borrow on a credit card or line of credit at any given time. |
| credit report | a detailed, 7-10 year record of your financial history, tracking how you manage debt and repay loans |
| credit score | a three-digit number, typically between 300 and 850, that acts as a snapshot of your creditworthiness and financial responsibility. |
| debt | something, typically money, that is owed or due. |
| finance charge | the total cost of borrowing money or using credit, expressed as a dollar amount. |
| grace period | the period during which no interest is charged on a credit card |
| interest rate | the cost of borrowing money or the reward for saving it, usually expressed as an annual percentage of the principal amount. |
| introductory rate | a temporary, lower-than-normal interest rate offered by lenders or credit card issuers to attract new customers |
| late payment fee | a financial penalty charged by creditors, lenders, or service providers when a borrower fails to make at least the minimum payment by the established due date. |
| lender | an organization or person that lends money. |
| line of credit | a flexible, revolving loan that allows you to borrow up to a set limit, repay it, and borrow again, similar to a credit card. |
| over the limit fee | a penalty charged by credit card issuers when a cardholder's balance exceeds their assigned credit limit |
| pre approved | a person, offer, or request has received conditional, preliminary approval in advance of a formal, final agreement. |
| principle | a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning. |
| secured loan | a type of credit backed by an asset you own—such as a home, car, or savings account—which serves as collateral |
| term | a word or phrase that uses business language to define relevant concepts for business users in an organization |
Created by:
ccarver26