APR
The Annual Percentage Rate of interest on your credit
card determines how much interest you are charged
on any outstanding balances.
Bad Debt
The amount due on an open account that has been proved
to be uncollectible.
Balance Transfer
The process by which you transfer an amount of existing
balance from one account to a different account.
Balance Transfer Rate
Credit card companies often charge fee for customers
wishing to transfer balances. However, competition
is extremely fierce at the moment and many credit
card companies are dropping this fee to attract customers.
Budget Planner
A budget planner is used to measure your in-goings
and outgoings to find out how much disposable income
you have left at the end of each month / year.
Card Protection Plan
For a small fee a Card Protection Plan will allow
you to cancel all your cards with one phone call if
lost or stolen. Find
out more here
Cash Advances
Using your credit card to obtain cash is known as
a cash advance. There is usually a fee charged for
using this service and additional fees can apply abroad.
Cash Back
Some credit cards will reward customers with cash
back for their loyalty. This is usually given as a
% of purchases made in a certain period of time.
Credit Limit
This is the maximum limit that you can spend on your
credit card. The limit depends on your individual
circumstances which are reviewed regularly.
Charity Donations
Some credit card companies offer charity donations
as a reward for your loyalty. You can choose from
various charity organisations.
Counterfeiting
Counterfeiting is where something is forged and then
used illegally as if it was the original copy.
Fixed APR
The Annual Percentage Rate does not fluctuate monthly
or quarterly. However, it can change but the credit
card issuer has to give the customer notice.
Fraud
This is where somebody uses your credit card without
your permission. This is illegal and can result in
a heavy prison sentence.
Introductory Rate
Many credit card companies will over a special introductory
rate for new customers. This is usually in the form
of a lower interest rate than standard.
Liable
This means that you could be proven to be legally
responsible for something. For example, if you credit
card is stolen and you left your pin number with it
and cash was taken then you would be liable to pay
this amount still as you were negligent.
Loyalty Points
Rewards / benefits which you earn from using your
card. They can be used in a variety of ways from airmiles
to food vouchers.
Monthly Statement
Each month your credit card issuer will send you a
statement with your purchases on and how much you
have to pay.
Online Shopping
Shopping for goods over the Internet.
Payment Protection
Plan
A Payment Protection Plan is offered by most credit
card companies for a small fee. This will protect
your payments if you become ill or unexpectedly unemployed.
Penalties
Credit card companies will charge you a penalty if
you miss a payment or go over your credit limit. The
amount of penalty depends on the credit card issuer.
Platinum / Gold Cards
Platinum and Gold cards can be purchased with a higher
level of income usually over £25,000. Extra
benefits also come with these cards.
Store Cards
These are a form of credit card that can usually be
used in the issuers store only or their chain.
Teaser Rate
A ‘teaser rate’ is a cheaper introductory
rate offered to new customers to encourage them to
purchase a credit card with that company.
Variable APR
The Annual Percentage Rate can fluctuate monthly and
quarterly depending on an index which the credit card
company is using.
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