Credit Cards Glossary

A

• Annual Fee
  Yearly fee charged by the car issuer for using the credit card.

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B

• Balance Transfer
  The act of transferring the outstanding balance from one card to another. Balance transfers are often done to take advantage of a lower interest rate.
  
• Business Credit Cards
  Credit cards that are reserved specifically for businesses, from business-for-self to large enterprises.

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C

• Cash Advance
  The act of withdrawing money from a credit card through a bank, ATM or convenience cheque.
  
• Cash Back Credit Cards
  Credit cards that offer a cash refund based on the total usage of the card.
  
• Credit Limit
  The maximum amount that you can charge to your credit card.

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G

• Grace Period
  A period of time during which interest is not charged as long as a payment is made before the period is over. It starts at the statement date and ends at the payment due date.
  
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I

• Interest Rate
  A percentage that is applied to your outstanding balance to determine the interest charges payable.
  
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L

• Low-Interest Credit Cards
  Credit cards that carry a low-interest rate. This low interest can be on purchases, cash advances, and/or balance transfers.
  
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M

• Minimum Payment
  The minimum payment that must be made each month in order to keep your account in good standing.
  
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N

• No Annual Fee Credit Cards
  Their name says it all. These credit cards can be used as an emergency fund since they cost nothing to the individual to keep.
  
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O

• Over-Limit Fee
  A penalty fee resulting from charges to the card exceeding the credit limit.
  
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P

• Personal Identification Number (PIN)
  A password used to identify the authorized cardholder when making purchases with the credit card.
  
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S

• Secured Credit Cards
  Credit cards that must have a security deposit. These cards are generally meant for people with bad credit or no credit.
  
• Student Credit Cards
  Credit cards that often have features that appeal to students, i.e. student rewards, no annual fees, etc.
  
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T

• Travel Credit Cards
  Credit Cards that offer travel rewards that can be redeemed for discounts on flights, hotels, car rental and other travel-related expenses.
  
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