Amount of Debt: Examined by lenders to determine how much of their credit limit an individual uses. If they continuously max out their card the lender will not perceive them as financially responsible.
Annual Fee: a yearly fee charged for carrying a credit card. It is most commonly found with secured cards, charge cards, and premium cards.
Annual Percentage Rate (APR): the annual rate charged for borrowing money. It is also a measurement used to compare different loans. it considers interest rate, term, and fees to illustrate the total cost of credit.
Application Fee: a fee charged simply for applying for a credit card. Most likely to be charged this fee with a secured card.
Authorized User: an option for a young adult under 21 to using a credit card. The young adult is added to their parent/guardians already existing credit account. The bank views the parents/guardians as the owners and they are responsible for managing the card.
Bad Credit: failing to make payments on time and in full.
Balance Transfer Fee: a fee charged when you transfer a balance from one credit card account into another. It is a one time payment but usually carries a high interest rate.
Carrying the Balance: a phrase used to describe when a person carries their outstanding balance into the next billing cycle.
Cash Advance: a type of Balance Transfer Fee, this allows card holders to withdraw a certain amount of cash whether from an ATM of a bank. Interest rate is usually very high and accrues immediately.
Charge Card: a credit card which does not have a balance limit, but the balance must be paid in full each month.
Charge: the money you borrow when you use the credit card.
Co-Sign: the only way a person 18 years of age can sign up for a credit card account. Their parent/guardian signs alongside the applicant but they will not receive the credit card statement nor will they have to pay the bill. The applicant is responsible for managing the card and paying their bills.
Credit Card: a card issued by a bank or business which allows the holder to borrow funds to purchase goods.
Credit Card Statement: A written record compiled by your financial institution which lists all transactions for a credit card account including deposits, withdrawals, checks, electronic transfers, fees, various other charges, and interest. AKA billing statement.
Credit Limit: the maximum amount of money that the credit issuer will allow you to charge to that card (aka line of credit)
Credit Report: a report issued by an individual credit agency that contains information concerning a loan applicant's credit history and current credit standing.
Credit Score: a numerical value which determines an individual's creditworthiness based off of 5 criteria. aka FICO Score
Credit Type Mix: A healthy mixture of different forms of credit. Usually made by revolving and installment credit.
Credit: making a purchase with the promise that the money used will be paid back later.
Deadbeat: someone who pays off their entire balance at the end of the month and never pays a late fee.
Debit Card: a card used to purchase goods or services which takes money directly from the user's checking account.
Default: the failure to pay interest or principle when it is due. A credit card user may default when they cannot make a required payment or are unwilling to honor debt.
FICO Score: also known as the credit score; named after the Fair Isaac Cooperation which created the formula for determining a credit score.
Finance Charge: an interest fee which is applied on the balance of a credit card which has been carried from month to month beyond the given grace period. All cards except a charge card and a prepaid card have this fee.
Good Credit: making payments on time and in full
Grace Period: the length of time between the use of the credit to make a purchase and the start of interest on the amount charged. During this window of time, you the consumer owes money to the credit card company for new purchases but you aren't being charged interest. This period is lost when you make a minimum payment.
Interest Rate: the percentage you pay on the money you have charged to the card.
Joint Account: a parent/guardian opens a new credit account with their child as a joint user. The child does not pay any of the bills themselves, it is the parents/guardians responsibility.
Late Payment Fee: a fee which is charged should the credit card holder fail to make a payment by the date it is due. In order to avoid this fee a credit card user needs to make at least a minimum payment.
Length of Credit History: the amount of time any credit accounts an individual owns has been open.
New Credit: New credit accounts which an individual opens. New credit bring down or build up credit score depending on frequency and need.
Limited Purpose Card: cards which can only be used at specific gas stations or stores. Example: Macy's Credit Card
Minimum Payment: paying the minimum amount possible to let the credit card company know you don't quite have the money right now, but will pay it back.
Outstanding Balance: the money you still owe when a full payment is not made.
Pay in Full: paying off the entirety of what the balance you owe on a credit card.
Payment History: aka a credit record, it determines the history of how well you have paid back all your past debt. Lenders look towards this past behavior to determine what your future behavior will look like and decide whether or not to lend credit.
Prepaid Credit Card: a credit card which establishes credit via an amount you "load" onto the card. As the loaded balance is used up, more money can be loaded onto the card.
Returned Check Fee: a fee which is only charged when a check is used to pay for a balance. It is only charged should the money in the checking account not be enough to cover the credit card balance.
Revolving Balance: credit spent on a credit card becomes available again as the balance is payed down.
Schumer Box: a table contained within credit card marketing materials which details the costs associated with that credit card.
Secured Credit Card: a credit card on which you place a deposit of your own money to spend. Depending on how much of the deposit limit you've used and your prior credit history you may be allowed to carry a revolving balance from month to month.
Standard Credit Card: the most commonly found type of credit card, it allows the user to carry a balance.
Annual Fee: a yearly fee charged for carrying a credit card. It is most commonly found with secured cards, charge cards, and premium cards.
Annual Percentage Rate (APR): the annual rate charged for borrowing money. It is also a measurement used to compare different loans. it considers interest rate, term, and fees to illustrate the total cost of credit.
Application Fee: a fee charged simply for applying for a credit card. Most likely to be charged this fee with a secured card.
Authorized User: an option for a young adult under 21 to using a credit card. The young adult is added to their parent/guardians already existing credit account. The bank views the parents/guardians as the owners and they are responsible for managing the card.
Bad Credit: failing to make payments on time and in full.
Balance Transfer Fee: a fee charged when you transfer a balance from one credit card account into another. It is a one time payment but usually carries a high interest rate.
Carrying the Balance: a phrase used to describe when a person carries their outstanding balance into the next billing cycle.
Cash Advance: a type of Balance Transfer Fee, this allows card holders to withdraw a certain amount of cash whether from an ATM of a bank. Interest rate is usually very high and accrues immediately.
Charge Card: a credit card which does not have a balance limit, but the balance must be paid in full each month.
Charge: the money you borrow when you use the credit card.
Co-Sign: the only way a person 18 years of age can sign up for a credit card account. Their parent/guardian signs alongside the applicant but they will not receive the credit card statement nor will they have to pay the bill. The applicant is responsible for managing the card and paying their bills.
Credit Card: a card issued by a bank or business which allows the holder to borrow funds to purchase goods.
Credit Card Statement: A written record compiled by your financial institution which lists all transactions for a credit card account including deposits, withdrawals, checks, electronic transfers, fees, various other charges, and interest. AKA billing statement.
Credit Limit: the maximum amount of money that the credit issuer will allow you to charge to that card (aka line of credit)
Credit Report: a report issued by an individual credit agency that contains information concerning a loan applicant's credit history and current credit standing.
Credit Score: a numerical value which determines an individual's creditworthiness based off of 5 criteria. aka FICO Score
Credit Type Mix: A healthy mixture of different forms of credit. Usually made by revolving and installment credit.
Credit: making a purchase with the promise that the money used will be paid back later.
Deadbeat: someone who pays off their entire balance at the end of the month and never pays a late fee.
Debit Card: a card used to purchase goods or services which takes money directly from the user's checking account.
Default: the failure to pay interest or principle when it is due. A credit card user may default when they cannot make a required payment or are unwilling to honor debt.
FICO Score: also known as the credit score; named after the Fair Isaac Cooperation which created the formula for determining a credit score.
Finance Charge: an interest fee which is applied on the balance of a credit card which has been carried from month to month beyond the given grace period. All cards except a charge card and a prepaid card have this fee.
Good Credit: making payments on time and in full
Grace Period: the length of time between the use of the credit to make a purchase and the start of interest on the amount charged. During this window of time, you the consumer owes money to the credit card company for new purchases but you aren't being charged interest. This period is lost when you make a minimum payment.
Interest Rate: the percentage you pay on the money you have charged to the card.
Joint Account: a parent/guardian opens a new credit account with their child as a joint user. The child does not pay any of the bills themselves, it is the parents/guardians responsibility.
Late Payment Fee: a fee which is charged should the credit card holder fail to make a payment by the date it is due. In order to avoid this fee a credit card user needs to make at least a minimum payment.
Length of Credit History: the amount of time any credit accounts an individual owns has been open.
New Credit: New credit accounts which an individual opens. New credit bring down or build up credit score depending on frequency and need.
Limited Purpose Card: cards which can only be used at specific gas stations or stores. Example: Macy's Credit Card
Minimum Payment: paying the minimum amount possible to let the credit card company know you don't quite have the money right now, but will pay it back.
Outstanding Balance: the money you still owe when a full payment is not made.
Pay in Full: paying off the entirety of what the balance you owe on a credit card.
Payment History: aka a credit record, it determines the history of how well you have paid back all your past debt. Lenders look towards this past behavior to determine what your future behavior will look like and decide whether or not to lend credit.
Prepaid Credit Card: a credit card which establishes credit via an amount you "load" onto the card. As the loaded balance is used up, more money can be loaded onto the card.
Returned Check Fee: a fee which is only charged when a check is used to pay for a balance. It is only charged should the money in the checking account not be enough to cover the credit card balance.
Revolving Balance: credit spent on a credit card becomes available again as the balance is payed down.
Schumer Box: a table contained within credit card marketing materials which details the costs associated with that credit card.
Secured Credit Card: a credit card on which you place a deposit of your own money to spend. Depending on how much of the deposit limit you've used and your prior credit history you may be allowed to carry a revolving balance from month to month.
Standard Credit Card: the most commonly found type of credit card, it allows the user to carry a balance.