| 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. |
