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Credit Card Vocab.
Term | Definition |
---|---|
Annual Fee | yearly fee to own a credit card |
Credit Limit | the maximum amount of money that can be charged |
Available Credit | the amount of money that can still be charged without going over the credit limit |
Grace Period | the time during which you are allowed to pay your credit card bill without having to pay interest |
Outstanding Balance | the amount of money you still owe after the due date has passed |
Finance Charge | the amount of interest charged based on the outstanding balance; essentially the total cost of borrowing |
Periodic Rate | the interest rate charged per month (or per day) |
Variable APR | an interest rate that can change at any given point with proper notification given |
Annual Percentage Rate | the interest rate charged on an outstanding balance |
Cash Advance | using your credit card to borrow cash from the bank |
Balance Transfer | moving money owed on one credit card to another credit card |