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Credit Card Vocab
| Question | Answer |
|---|---|
| annual fee | Yearly fee charged by some credit card companies. |
| ATM cash advance | Using your credit card to get cash form an automated teller machine. |
| balance payer | Someone who pays off his or her entire credit card balance each month. |
| balance transfer | Paying off one credit card balance by transferring it to another credit card. |
| credit | Borrowing money and promising to pay it back later. |
| credit card solicitations | Advertisements sent in the mail inviting you to apply for credit cards. |
| credit cards | Plastic cards used to make purchases on credit. |
| credit inquiry | A lender's check of your credit rating. |
| credit line | The maximum amount you can borrow on a credit card. |
| credit rating | A detailed record of past borrowing and credit payments. |
| debit cards | Plastic cards used to pay for purchases with funds you have in a bank account. |
| grace period | Time period following your credit card statement date where no interest is charged if paid in full during a defined period of time. |
| interest | Fee paid to a lender for use of money. |
| interest rate | Annual percentage which when multiplied by your credit card balance equals the interest charge. |
| late fee | Yearly fee charged by some credit cards. |
| loan consolidation | Paying off all of your current loan balances by taking out one new, large loan. |
| minimum payment amount | The minimum amount you must pay this month. |
| purchase enabler | Using a credit card to make transactions where you already have the money in the bank and will pay the bill off in full each month. |
| store credit cards | Cards issued by specific stores, for use in that company's stores only. |
| teaser rates | Low, temporary interest rates offered by some credit cards. |
| debit cards | Plastic cards used to pay for purchases that are withdrawn from funds you have in a bank account. |
| late fee | Fee charged for a late payment. |