12 Must-Know Credit Card GlossaryAre you confused by credit card terms? These glossary will help understand them better and aviod to deep debt.
Additional Cards The card is issued as additional cardhoder on the primary card holder's account. Additional cardholders are authorized to charge to the card and make payments. They can view balance, but not authorized to make changes to the account. Primary cardholders can canel the additional cards at any time without notification.
Annual Fee It is a fee charged every year for maintaining an account and special service. Available Credit It is the unused credit available. It is caculated by substracting the outstanding balance from your total credit limit.
Balance It refers to the amount owed on your card.
Cash Advance It means withdrawing cash from your credit card. Each cash advance will accure Finance Charges from the date the cash advance is made.
Finance Charge It is the fee for borrowing money. It is also known as interest. Finance charge may be imposed when you do not pay off outstanding balance in full.
Float When you make a purchase, the transaction may not post for a few days. Th charge amount is not added to the balance of the account until transaction does post. The time between purchase and posting is referred to the float.
Interest It is also known as finance charge. It is the fee for borrowing money. The interest on card could change any time.
Late Payment Fee If the minimum payment is not received by the due date, a late payment fee will be imposed on your balance.
Minimum Payment The minimum amount must be paid each month. The amount is based on the percentage of your outstanding balance or a minimum fixed amount.
Outstanding Balance It is the amount you owe on your card.
Over-the-Credit-Limit-Fee It is the fee that may be imposed when your outstanding balance exceeds your credit limit.
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