Some Terminology About Credit Card

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A credit card is a card that gives you access to cash, goods, or services within a specified credit limit. It’s easy to use, but can you read the credit card company’s terms and conditions when you plan to use a credit card?

The language used by credit card companies is so professional that we don’t use it in our daily lives. Even filling out an application is a pain. If you can’t read these terms, you may suffer a loss.

You need a good credit card glossary so that ordinary people can understand the terms well. As it happens, I’ve compiled a simple list of some of the most commonly used credit card terms.

1. Account number

Each credit card has its own unique number.

2. Annual fees

Some credit cards require bear the cost every year to use. This is called an annual fee.

3. APR

When you apply for a card, it pops up in the relevant information.

If the payment is not made on time after the consumption, the bank will charge the corresponding interest according to the agreement made by the APR at the time of issuing the card.

4. Balance transfer

I’m sorry, there is no such term. But you can transfer your credit balance from one credit account to another. It helps save you interest payments.

5. Bad credit

It means a poor credit rating. I’m sure no one wants to be labeled “bad credit.” It can be caused by late payments, exceeding credit card limits, etc.

6. Cash advance

This means you can use an ATM to withdraw cash from your credit card. Of course, you need to repay the principal and interest him on time.

7. Credit report

It’s your credit history, and lenders often look at it to determine whether and how much they should lend you.

8. Debit card

A debit card is also called a bad credit card. It requires you to keep a balance in your checking or savings account and not overspend.

9. Grace period

The time difference between a bank’s entering an item of expenditure in the accounts day and the repayment date, during which consumption does not generate any interest.

10. Minimum payment

If you don’t have enough money to pay it back, you can use this feature.

The minimum payment is the minimum amount you can pay to keep your account in good standing.

11. PIN number

If you don’t want your credit card stolen, you’ll need a security code to make money transactions with your credit card.

12. Pre-approval

This indicates that the customer has passed the initial evaluation of the credit union.

By reading this post, I hope you feel more confident about using your credit card now, or at least that the credit card terms don’t bother you anymore!

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