Guide to Credit Terms
Listed below is a useful guide to credit card terms. It is a list of definitions of credit card terms that may or may not be familiar to you.
Annual Fee
Various card issuers charge an annual fee, which can help offset costs that issuers incur in maintaining accounts and providing services.
Annual Percentage Rate (APR)
Stands for 'annual percentage rate'. A figure, expressed as a percentage, which incorporates the interest charged upon the credit card as well as any additional fees.
Association for Payment Clearing Services (APACS)
The banking industry body that oversees money transmission and payment clearing activities in the UK.
Automated Teller Machine (ATM)
Another term for a cash machine.
Balance
The total amount that you owe your credit card provider and includes charges such as interest and fees.
Balance Transfer Rate
The interest rate that will be charged on any balance transferred from a previous credit card onto a new one.
Cash Advance
Withdrawing money from a cash machine using your credit card. There is usually a charge imposed for this service. A cash advance is different from a withdrawal you make with your ATM card.
Charge Card
This is a type of credit card often favoured by businesses on which the balance must be paid off in full each month.
Credit Limit
This is the maximum amount you can borrow using your card.
Credit History
A record of how you have paid accounts in the past; used as a guide to determine whether you're likely to pay accounts on time in the future.
Credit Reference Agency
Organisations that specialise in providing credit reports that assess an individual or business's credit risk.
Credit Report
An assessment of an individual or a company's credit risk. These reports are composed using a variety of informational sources and are used by lenders in order to assess applicants.
Finance Charges
The price paid to a lender for the use of borrowed money.
Fixed Rate
A set annual percentage rate that does not change in response to interest rate changes and conditions.
Interest
The charge that the lender imposes on the borrower for the granting of credit.
Interest Free Period
The period during which no interest will accrue on credit card transactions.
Period
The period during which the Introductory Rate applies to balances outstanding on your account.
Introductory Rate
A special annual percentage rate that applies for only a limited time.
Minimum Payment
This is the minimum amount that you will need to pay back each month on your credit card balance.
Online Banking
Online systems enable you to access a host of banking services from a personal computer by connecting with the bank's computers over the Internet.
PIN
Stands for 'personal identification number' and is issued to a credit card holder in order to enable them to use cash machines to withdraw money.
Rewards Program
A point accumulating program based on purchases or transactions made on your card.
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About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
MORE RESOURCES:
 RTE.ie | Citigroup Posts $2.5 Billion Loss on Write-Downs New York Times, United States - By LOUISE STORY Hobbled by the credit crisis at home, Citigroup has limped through nine months in the red, reporting a $2.5 billion quarterly loss on Friday ... Credit Costs Weigh on Citigroup Citigroup credit default swaps narrow 15 bps-Phoenix Credit Costs Weigh on Citigroup |
 BBC News | Ackermann says credit crisis end in sight Financial Times, UK - Josef Ackermann, Deutsche Bank’s chief executive, on Thursday said the credit crunch was at “the beginning of the end” as banks and regulators have taken ... 2nd UPDATE: JPMorgan 2Q Net Down 53% On Credit Woes, Markdowns JP Morgan: The Legacy of the Credit Crunch Why No Outrage? |
Studying up on credit scores Chicago Tribune, United States - In matters of money, a credit score assesses your financial responsibility. And just as with taking your first practice test, your score may be low when you ... Given a Shovel, Digging Deeper Into Debt |
Dollar Rebounds From Record Versus Euro as Credit Turmoil Eases Bloomberg - The US currency also rose versus the yen on signs US investment banks will withstand credit-market losses and the Federal Reserve and the Treasury proposed ... |
 BBC News | Credit crisis: Merrill Lynch to sell Bloomberg stake and keep HQ after Tehran Times, Iran - The loss was due to write-downs of $9.4bn on the value of mortgage holdings, credit-related derivatives and instruments guaranteed by crisis-hit monoline ... Merrill Drops After $4.65 Billion Second-Quarter Loss (Update2) Quarterly loss at Citi smaller than expected, but Merrill disappoints BlackRock shares soar on earnings, Merrill stake move |
$10m W/Bank Credit: Boom time for small-scale mining The Punch, Nigeria - This was the scenario, which the World Bank set out to help Nigeria change in 2005 when it granted the country $120m credit under the Sustainable Management ... |
Mortgage sales pressure fuelling credit crisis: ACTU ABC Online, Australia - The Australian Council of Trade Unions (ACTU) has accused banks of fuelling the credit crisis by forcing staff to push mortgages onto people who cannot ... Banks 'pushing' families into debt Banks lean on staff to push loans |
No deals for debits at the pump Detroit Free Press, United States - I would have paid the same price if I used a credit card. Bring the Benjamins and you'd get that super-low price -- OK, low by today's standards -- of ... Gas stations turning to using 'gift |
Teton County development plagued by credit crunch Fox 12 Boise, ID - Developer Bill Reid said a nationwide credit crunch prevented him from winning more financing for the 1350-acre Huntsman Springs project. ... |
Deals and takeovers are being done despite the credit crisis Telegraph.co.uk, United Kingdom - So, tapping the credit market for a cool £10bn to finance the acquisition of companies such as Alliance Boots or J Sainsbury is simply out of the question ... |
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