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Credit Card Vocab
Question | Answer |
---|---|
annual fee | Yearly fee charged by some credit card companies. |
ATM cash advance | Using your credit card to get cash form an automated teller machine. |
balance payer | Someone who pays off his or her entire credit card balance each month. |
balance transfer | Paying off one credit card balance by transferring it to another credit card. |
credit | Borrowing money and promising to pay it back later. |
credit card solicitations | Advertisements sent in the mail inviting you to apply for credit cards. |
credit cards | Plastic cards used to make purchases on credit. |
credit inquiry | A lender's check of your credit rating. |
credit line | The maximum amount you can borrow on a credit card. |
credit rating | A detailed record of past borrowing and credit payments. |
debit cards | Plastic cards used to pay for purchases with funds you have in a bank account. |
grace period | Time period following your credit card statement date where no interest is charged if paid in full during a defined period of time. |
interest | Fee paid to a lender for use of money. |
interest rate | Annual percentage which when multiplied by your credit card balance equals the interest charge. |
late fee | Yearly fee charged by some credit cards. |
loan consolidation | Paying off all of your current loan balances by taking out one new, large loan. |
minimum payment amount | The minimum amount you must pay this month. |
purchase enabler | Using a credit card to make transactions where you already have the money in the bank and will pay the bill off in full each month. |
store credit cards | Cards issued by specific stores, for use in that company's stores only. |
teaser rates | Low, temporary interest rates offered by some credit cards. |
debit cards | Plastic cards used to pay for purchases that are withdrawn from funds you have in a bank account. |
late fee | Fee charged for a late payment. |