Guide to Credit Terms

Listed below is a useful guide to credit card terms. It is a list of definitions of credit card terms that may or may not be familiar to you.

Annual Fee

Various card issuers charge an annual fee, which can help offset costs that issuers incur in maintaining accounts and providing services.

Annual Percentage Rate (APR)

Stands for 'annual percentage rate'. A figure, expressed as a percentage, which incorporates the interest charged upon the credit card as well as any additional fees.

Association for Payment Clearing Services (APACS)

The banking industry body that oversees money transmission and payment clearing activities in the UK.

Automated Teller Machine (ATM)

Another term for a cash machine.

Balance

The total amount that you owe your credit card provider and includes charges such as interest and fees.

Balance Transfer Rate

The interest rate that will be charged on any balance transferred from a previous credit card onto a new one.

Cash Advance

Withdrawing money from a cash machine using your credit card. There is usually a charge imposed for this service. A cash advance is different from a withdrawal you make with your ATM card.

Charge Card

This is a type of credit card often favoured by businesses on which the balance must be paid off in full each month.

Credit Limit

This is the maximum amount you can borrow using your card.

Credit History

A record of how you have paid accounts in the past; used as a guide to determine whether you're likely to pay accounts on time in the future.

Credit Reference Agency

Organisations that specialise in providing credit reports that assess an individual or business's credit risk.

Credit Report

An assessment of an individual or a company's credit risk. These reports are composed using a variety of informational sources and are used by lenders in order to assess applicants.

Finance Charges

The price paid to a lender for the use of borrowed money.

Fixed Rate

A set annual percentage rate that does not change in response to interest rate changes and conditions.

Interest

The charge that the lender imposes on the borrower for the granting of credit.

Interest Free Period

The period during which no interest will accrue on credit card transactions.

Period

The period during which the Introductory Rate applies to balances outstanding on your account.

Introductory Rate

A special annual percentage rate that applies for only a limited time.

Minimum Payment

This is the minimum amount that you will need to pay back each month on your credit card balance.

Online Banking

Online systems enable you to access a host of banking services from a personal computer by connecting with the bank's computers over the Internet.

PIN

Stands for 'personal identification number' and is issued to a credit card holder in order to enable them to use cash machines to withdraw money.

Rewards Program

A point accumulating program based on purchases or transactions made on your card.

You may freely reprint this article provided the author's biography remains intact:

About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Credit Verus Debt

Secured and unsecured debt - what's the difference?It's easy to... Read More

Are You The Only One Using Your Name?

Identity theft has become an epidemic. Millions and millions of... Read More

Bad Debt Recovery

Bad Debt IdentificationIdentifying bad debt is not as easy as... Read More

What Does Your Credit Score Tell You?

When you apply for a loan or a mortgage, the... Read More

Triple AAA in 30 Days

Have you ever wonder about how to get good credit... Read More

Bankruptcy Myths Busted

The average American knows very little about bankruptcy. Most people... Read More

Student Credit Cards 101

If you're a college student, you probably already have a... Read More

Warning: Free Credit Report Imposter Websites Springing Up on the Web

A recent amendment to the federal Fair Credit Reporting Act... Read More

How To Save Money On Credit Cards

Some credit cards offer a cash advance option. But how... Read More

Credit Trap: What They Dont Tell You About Credit Cards In College

In industrialized nations, going into debt starts early. It's easy... Read More

Rewards Cards - Are They Right For You?

Rewards cards have become the latest rage in the credit... Read More

Credit Card Is Adding The Silver Lining To Your Pocket

In the new millennium plastic money or credit cards has... Read More

Avoiding ID Theft and Credit Fraud

Article excerpted from the new book, "How to Do Space... Read More

How To Avoid Becoming A Victim of Identity Theft

With identity theft statistics currently at an all time high,... Read More

Big Brother Knows Whats in Your Credit Report - How About You?

Whether you are aware of it or not, credit bureaus... Read More

It Takes Credit To Build Credit

Using a credit card wisely is an important step in... Read More

Credit Cards -- What You Should Know

There are a lot of questions about using credit cards.... Read More

New Credit Advice: Dont Pay off Those Credit Cards!

Credit needed for real estate mortgage financing differs from credit... Read More

Figuring Out the Ever Nebulous Numbers Called Credit Scores

Credit Score FactorsThe information contained on our credit reports affect... Read More

Do You Want to Get a New Credit Card at a Great Rate?

1) Do your homework. Applying for and getting approved for... Read More

SuperCharged Secret 3, Credit Card Utopia

TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment... Read More

The Credit Card Surprise That You Need to Look Out For

Companies that issue credit cards want to make a profit.... Read More

Building Your Credit History

Today, credit is an indispensable part of our lives. In... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

Manage Your Credit Wisely

Getting your first credit card is a big deal and... Read More