Question | Answer |
Annual percentage rate (APR) | The standardized annual cost of credit, including
all mandatory fees paid by the borrower, expressed
as a percentage rate. |
Average daily balance | The average of the balances owed on each day of
the billing cycle. |
How to Avoid Identity Theft | - social security #
- Check cred. report regularly.
- Shred old statements
- Don't carry xtra c.cards/IDS
- Mail payments at p.o.
- Examine charges on c. card stments. b4 paying.
- Never give your c.card # or info over phone/internet(unless trust/se |
Bank credit card | A credit card issued by a depository institution |
Billing date | The last day of a billing cycle. Credit card transactions
made after the billing date appear on the
next month’s bill. |
Cash advance | A cash loan from a credit card account. |
Closed-end credit | Loans for a specific purpose paid back in a specified
period of time, usually with monthly payments. |
Consumer credit | Credit used for personal needs other than home purchases. |
Convenience check | A check supplied by a credit card lender for the
purpose of making a cash advance. |
Cosigner | A person who agrees to take responsibility for
repayment of a loan if the primary borrower
defaults. |
Credit | An arrangement to receive cash, goods, or services
now and pay later. |
Credit bureau | A company that collects credit information on individuals
and provides reports to interested
lenders. |
Credit limit | The preapproved maximum amount of borrowing
for an open-end credit account. Also known
as a credit line. |
Due date | The date by which payment must be received by
the lender if the account holder is to avoid late
penalties and, in some cases, interest on new
transactions. |
Electronic cash | Money in digitized format. |
Finance charge | The dollar amount of periodic interest charged by
a lender on a credit account. |
Grace period | The time before interest begins to accrue on new
transactions. |
Late payment penalty | A penalty fee charged to an account for making a
payment after the due date. |
Minimum payment | The minimum amount that must be paid by the
due date to maintain good credit standing and
avoid late payment penalties. |
Open-end credit | Preapproved continuous loans that can cover
many purchases and usually requires monthly
partial payments. Also known as revolving credit. |
Overlimit charge | A penalty fee charged to an account for exceeding
the credit limit. |
Periodic rate | The stated rate divided by the number of billing
periods per year. |
Retail credit card | A credit card that can be used only at the sponsoring
retailer’s outlets. |
Smart card | A card that stores identification and electronic
cash in a computer chip. |
Travel and entertainment (T&E) Card | A credit card that requires payment of the full balance each billing cycle. |
Teaser rate | A short-term below-market interest rate intended
to encourage new customers to apply for a credit
card. |
Transaction date | The date on which you make a credit card
purchase. |