Annual fee the yearly amount charged for the use of a credit card. A lower ratio means you re using less of the credit currently available to you which is a positive sign in the eyes of a credit card company.

What Does Overdraft Protection Mean For Your Credit

Credit card terms explained.

Credit card terminology explained. With that in mind here s the lowdown on nine credit card terms that consumers commonly find confusing. Apr annual percentage rate 4. Some creditors don t offer grace periods bruce explains.

Without understanding basic credit card lingo you can easily find yourself confused and in debt. The days or weeks during which no interest or fees are charged on new credit card purchases. It is the interest rate that a customer is charged on any outstanding balance.

Grace periods often start on the first day of a billing cycle and end a certain number of days later usually 21 25 days. Use credit cards if you want a secure and convenient way to pay. 18 credit cards terms explained.

An increase in your credit limit means the utilization ratio your balance to your credit limit is lowered assuming your balance is kept the same. Apr annual percentage rate apr is an acronym for. S sales draft satisfaction and release savings and loan association savings bank schumer box score factor secured credit cards secured debt security code security interest semi secured credit card semisecured card service charge settlement settlement bank setup fee short message service short sale shoulder surfing showrooming sign up bonus signature strip sin purchases skimmer skimming skip tracer sled smart card smishing sms soft inquiry soft pull split payment transaction spoilage standard.

If you borrow funds for a significant period of time you ll pay a fee for the privilege called interest. Published by my rate compass team updated dec 14 2020. This is a charge for being able to pay for a product or service using a credit card through an alternative payment channel that is not standard for a merchant.

A credit card is a small plastic card that lets you borrow money from a financial provider. The following definitions can help you better understand commonly used words and phrases in. There are many terms that credit card offers and statements throw around that you may not know.

Balance transfer credit cards. So it is important to familiarize yourself with these terms before you get into something you may not want.