Credit Card Vocabulary

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Balance

Back

The amount that still needs to be paid to the credit card company.

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Billing Cycle

Back

The time between billing statements, usually 28-31 days.

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Annual Fee

Back

A yearly fee that may be charged for having a credit card, independent of how you use the card.

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Credit Limit

Back

The maximum amount of money you can borrow with one card.

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Interest Rate

Back

The cost of credit; the rate charged for borrowing money usually expressed as a percent of the amount borrowed.

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Cash Advance

Back

A service provided by credit card issuers that allows cardholders to withdraw cash, usually at a high-interest rate.

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Creditworthiness

Back

An assessment of a borrower's ability to repay debt, often determined by credit score.

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Default

Back

Failure to repay a loan according to the agreed terms.

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Payment Due Date

Back

The date by which a credit card payment must be made to avoid late fees.

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Average Monthly Balance

Back

The average amount owed on a credit card over a billing cycle.