Credit Card

Credit Card terms

1. "Go-to" rate Interest rate you are charged after the introductory rate.
2. Address on file Your address on file is the address that you provided on your application to open this credit card account, unless (1) we have received and processed your…
3. Affinity card A card that offers rewards that benefit groups and organizations.
4. Annual fee A yearly fee that may be charged for having a credit card. Some card issuers assess the fee in monthly installments.
5. Annual Percentage Rate (APR) (APR) The cost of credit on a yearly basis, expressed as a percentage.
6. Application Fee A fee charged when you apply for a credit card.
7. Assign We assign your credit card contract if we sell or pass to a third party any or all of our rights or obligations under the contract, including any amount…
8. Authorized charge An authorized charge is any charge that you or any authorized user makes on the account, and any fees and interest charges owing on the account.
9. Authorized user If you ask us to issue a credit card on this account to another person, he or she is an authorized user.
10. Average daily balance method with compounding According to this method, we calculate the interest charges for each balance by applying the “daily periodic rate” for that balance to the “average…
11. Average daily balance method without compounding According to this method, we calculate the interest charges for each balance by applying the “daily periodic rate” for that balance to the “average…
12. Balance We put each charge on your account, including interest or fees, into a balance category.
13. Balance transfer The process of moving an outstanding balance from one credit card to another. This is usually done to obtain a lower interest rate on the outstanding…
14. Balance-transfer fee A fee charged when you make a balance transfer. It may be a flat fee or a percentage of the transfer.
15. Bill Your bill is the statement of your account. Your bill will tell you the total amount that you owe us as of the end of the last billing period.
16. Billing period The billing period is the fixed period of time covered by the bill we send you.
17. CARD Your card is the physical card, the account number, or any device (including a check) that can be used to access your credit card account.
18. Cash advance You receive a cash advance when you use your card or account to do any of the following: obtain cash from an automated teller machine (ATM); or obtain…
19. Cash-advance fee A fee charged when you use a credit card for a cash advance, such as withdrawing cash from an ATM.
20. Credit Bureau An agency that collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans.
21. Credit Card A plastic card with a magnetic stripe that is used from time to time or over and over again to borrow money or buy goods or services on credit, and which…
22. Credit card agreement A document that outlines the terms and conditions for using your credit card. It is your contract with your credit card company.
23. Credit counseling service A service that employs credit counselors who will look at your financial situation and help develop repayment options.
24. Credit History A record of an individual’s or company’s past borrowing and repaying behavior maintained by an independent credit reporting agency.
25. Credit limit The maximum amount of credit that is available on a credit card or other line of credit account.
26. Credit Report A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.
27. Credit reporting agency See credit bureau.
28. Credit Score A number, roughly between 300 and 800, that measures an individual's credit worthiness. The most well-known type of credit score is the FICO® score.
29. Credit-limit-increase fee A fee charged if you ask for and receive an increase in your credit limit.
30. Daily balance method with compounding According to this method, we calculate the interest charges for each balance by applying the “daily periodic rate” for that balance to the “daily…
31. Daily balance method without compounding According to this method, we calculate the interest charges for each balance by applying the “daily periodic rate” for that balance to the “daily…
32. Daily periodic rate (DPR) (DPR) DPR stands for “Daily Periodic Rate.” This is a daily interest rate. The daily periodic rate or DPR for a given balance is equal to the APR on that…
33. Debt cancellation coverage Cancels your debt if you become unemployed, disabled, or meet other criteria covered by your contract.
34. Debt suspension coverage Stops your payments during periods of unemployment, disability, or other situations covered by your contract.
35. Default Default occurs when a debtor is unable to meet the legal obligation of debt repayment, one form of which is the failure to promptly pay interest or…
36. Default APR See penalty APR.
37. Due date The due date is the date by which we must receive your payment in order for it to be on time. Your bill lists the due date.
38. Everyday debit card transactions Purchases made with your debit card on a day-to-day basis (excludes all checks and automatic bill payments)
39. Fixed-rate APR An APR set at a certain percent that cannot change during the period of time outlined in your credit card agreement.
40. Foreign currency transaction A foreign currency transaction is a purchase and/or cash advance that you make in a foreign currency, i.e. not U.S. dollars.
41. Grace Period A time period after the due date that you may pay a premium without penalty. The policy remains in force during this time.
42. Index Statistical measure of the state of the stock market or economy based on the performance of stocks or other components.
43. Interest rate The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time.
44. Interest-free period The number of days you have to pay your bill in full before an interest charge is assessed on purchases.
45. Introductory APR The APR charged during the credit card's introductory period after a credit card account is opened.
46. Late payment A late payment is your failure to make at least the minimum payment so that it reaches us by or before the time and due date on your bill.
47. Late-payment fee A fee charged if your payment is received after the due date.
48. Membership fee See annual fee.
49. Minimum interest charge The minimum amount of interest you will be charged if you are charged any interest. For example, if your total interest charge is $0.
50. Minimum Payment The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt.
51. Opt-In Giving your credit card company or bank permission to include you in a particular service.
52. Opt-out Declining a particular service offered by your bank.
53. Over-the-limit fee A fee charged if your account balance goes over your credit limit. You will not be charged this fee unless you have authorized your credit card company to…
54. Overdraft When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft…
55. Participation fee See annual fee.
56. Penalty APR The APR charged on new transactions if you trigger the penalty terms in your credit card contract.
57. Penalty fees Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account.
58. Periodic Rate The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily…
59. Premium credit card A credit card that offers high credit limits and often has additional features like product warranties, travel insurance, or emergency services.
60. Prime Rate The prime rate is a benchmark for interest rates on business and consumer loans.
61. Protected balances Protected balances are amounts owing on the account that under law are not subject to an increase in interest rates or fees.
62. Purchase APR The APR you will pay for purchases if you carry a balance on your credit card. For many cards, you only have to pay interest on purchases if you carry…
63. Purchases A purchase is the use of your card to buy or lease products or services. The purchase of cash or cash equivalents, like casino chips or lottery tickets…
64. Retail credit card A credit card associated with a retail store. Depending on the type of card, you may be able to use it at locations other than the one where you received…
65. Returned payment This is a payment that you make to us that is not honored by your financial institution.
66. Secured credit card A secured credit card is linked to a savings account you open with the bank or other financial institution offering the card.
67. Set-up fee A fee that may be charged when you open a new credit card account.
68. Standard payment instructions You must pay your credit card bill in a manner that meets all the following conditions: You must pay in U.S.
69. Treasury bill rate The rate paid by the government on its short-term borrowing. See index.
70. Variable-rate APR An APR that may change depending on other factors, such as the prime rate or Treasury bill rate.
71. Workout agreement A type of debt management plan.
72. Workout arrangement This is a special arrangement between us and you in which we agree to a temporary reduction in applicable interest rates or fees in return for your…