Credit Card Vocab

Front

Credit Card

Back

allows the user to charge for the purchase now and pay later

Front

Debit Card

Back

Directly withdraws from checking account for purchases.

Front

Credit Limit

Back

Maximum amount of credit a cardholder can borrow; also known as Credit Line.

Front

Annual Percentage Rate (APR)

Back

Yearly interest rate charged on debt.

Front

Retail Credit Card

Back

Same as a credit card but can only be used at the specific retailer.

Front

Promotional Period

Back

No interest charged if debt is paid by end of promo; retailer’s special offer.

Front

Deferred Interest

Back

Amount of interest forgiven if debt is paid in full by the end of the promotional period.

Front

Accrued Interest

Back

Accumulated interest owed on the debt since the purchase.

Front

Grace Period

Back

Time period with no interest on purchases; applies to all credit cards, not just special offers.

Front

Credit Line

Back

Same as Credit Limit.