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Credit
Term | Definition |
---|---|
Annual Fee | An annual (yearly) fee charged by a credit card company each year for use of a credit card. |
Annual Percentage Rate (APR) | Technically speaking the APR, or Annual Percentage Rate is a numeric representation of your interest rate. When deciding between credit cards, the APR can help you compare how expensive a transaction will be on each one. |
Credit | when something is received in exchange for a promise to pay back money in the future |
Credit Card | plastic card that holds pre approved credit |
Due Date | the date on which something falls due, especially the payment of a bill |
Introductory Rate | An introductory rate (also known as a teaser rate) is an interest rate charged to a customer during the initial stages of a loan. |
Late Payment Fee | A late payment fee (a late charge) is charged to a borrower who misses paying at least their minimum payment by the payment deadline |
Minimum Payment | least amount you can pay your bill on your card |
Over Limit Fee | an over-limit fee is a fee charged when your balance goes over your credit limit (also known as over the limit fee) |
Penalty APR | Usually the highest APR. It may be applied to certain balances when you violate the card terms and conditions like failing to make payments on time. |
Pre-Approved | An evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender would be willing to lend. |
Returned Payment Fee | A charge a credit card company may assess to a customer's account if the customer attempts to pay a credit card bill with a check that is returned unpaid |