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.
MORE RESOURCES:
 |
|
|
RELATED ARTICLES
Have You Ever Opened a Checking Account?
Maybe some of you are saving it in your trusty piggy bank, under your mattress or way back in a sock drawer. Although I'm glad that you are saving, your money is not doing anything for you locked up in your house.
Clean Credit Report: Easily Raise Your Credit Score 100 points
Clean Credit Reports, your credit report contains information about where you work, live and how you pay your bills (On time or not). It also may show whether you've been sued, arrested or have filed for bankruptcy with in the last 10 years.
Useful Tips on Borrowing Money
Here are some useful tips on borrowing money. Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy.
Are you paying higher interest on your credit cards than you think?
Many credit card holders sign up for a credit account with an 8.9% interest rate and then later realize that their interest rate has been bumped to 27.
The Credit Card Surprise That You Need to Look Out For
Companies that issue credit cards want to make a profit. No one disagrees with that.
How to Deal with Hire Purchase Debt
WHAT IS HIRE PURCHASE/CONDITIONAL SALE?Although people often talk about "buying on HP", Hire Purchase Agreements are quite unusual these days. Cars are the most usual goods sold under Hire Purchase or Conditional Sale Agreements.
Building A Credit Report Lenders Will Love You For
Will lenders really love you for having a good credit report score? Love is not the right word of course; lenders are after your money, and never forget that. But the lender's representative will love dealing with your credit application if your credit report is good.
5 Surefire Ways To Eliminate Credit Card Debt
Do you have enormous credit card debt? You are certainly not alone. According to research, the average family in the United States has $7000 in credit card debt and pays about $1000 in interest each year! Throw in a late payment or two, or an over-the-limit charge, and that number skyrockets.
Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed.
How a Credit Card Can Be Your Friend
We have all heard countless stories of people over their
heads with credit card debt-maxing out every card they own,
then only being able to afford the minimum monthly payment.
High interest payments shackle people to their debt for
years, not to mention the significant income drain the
finance charges have on their families.
Understanding the Process of Credit Counseling
Many of us have seen the advertisements on television. "Get out of debt fast!" "We can solve all your credit problems with only one call!" These sound really great but you know that, realistically, one call is not going to solve your credit problems.
Top 7 Factors to Consider While Reviewing Credit Card Offers
Credit cards have migrated from being hip or convenience product into a must have entity for everybody. Shopping Online you need a credit card.
7 Surefire Ways To Repair Bad Credit
Do you have a poor credit rating? If so, you are one of tens of thousands of Americans with the same problem. In fact, it seems that this has become a national 'disease.
Credit Cards or Store Cards - Which Is Better?
Introduction
In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers. The purpose of this article is to provide a general overview of major credit cards and store cards to aid consumers in making decisions regarding which lines of credit lines would be the best for them in a given set of circumstances.
Are You The Only One Using Your Name?
Identity theft has become an epidemic. Millions and millions of purses and wallets are stolen everyday and many of them are not just taken for the money inside.
Tired Of Being Broke?...Learn How To Force Banks To Give You Money!
Imagine..
10 Ways To Protect Your Financial Identity Being Used For Someone Else's Shopping Spree
Someone impersonating you could be spending your hard-earned money.Impossible! Not really, check, loan, and identity fraud are a real problem.
SuperCharged Secret 5, Credit Card Utopia
LIVING IN CREDIT CARD UTOPIALet's just take a brief moment to recap:If you've been following along on this journey with me, learning the 5 Super-Charged secrets to Credit Card Utopia, then you now know 4 very important things:You now know how to take advantage of zero to low interest credit card offers.You now know that there is safety in numbers, and you know the magic "Who's Who" of the major credit card companies.
Why Your Credit Score is Important
Your credit score can either haunt you or reward you. It all depends on how you handle your credit and payment activities.
Maximizing Credit Card Rewards
In their quest to get you to sign up for their credit card, banks and financial institutions are coming up with more and higher incentives to entice you. Frequent flyer miles gave way to gas miles which opened the door for cash rebates and reward points to be used at 'our fine member merchants'.
|