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Credit Card Vocabulary

Look at the vocabulary words pertaining to credit cards. You will need to know these. Click on each term to see its definition.

  1. Minimum Payment
    • Definition:The minimum payment is the smallest amount you can pay each month.
  2. Billing Cycle
    • Definition: The billing cycle is Usually a month. All your transactions during the billing cycle are recorded at the end, and sent to you via a statement.
  3. Statement
    • Definition: The statement is a summary of all your transactions for the billing cycle. The statement will include the day your payment is due, minimum payment, etc.
  4. Grace Period
    • Definition: If you pay your balance in full during the grace period before the due date, you will not be charged interest.
  5. APR
    • Definition: The interest rate, expressed in a yearly amount is called the APR.
  6. Introductory Period
    • Definition: Many credit cards will try to woo new customers by offering a low interest rate during the introductory period.
  7. Annual Fee
    • Definition: An annual fee is a fee charged to use the credit card. These fees are most common on “rewards” cards.
  8. Late Payment Fee
    • Definition: If your payment is received after the due date, you will be charged a late payment fee, usually around $36.
  9. Credit Line (or limit)
    • Definition: The maximum dollar amount you can charge on your account is your credit line, sometimes called your credit limit.