Credit Card Vocab

Credit Card

• allows the user to directly withdraw from the checking account for the purchase.

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

•  the maximum amount of credit the cardholder is allowed to borrow or owe; sometimes known as Credit Line.

• the yearly interest rate at which the debt is charged. 

Debit Card

• allows the user to directly withdraw from the checking account for the purchase.

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

•  the maximum amount of credit the cardholder is allowed to borrow or owe; sometimes known as Credit Line.

• the yearly interest rate at which the debt is charged. 

• same as a credit card but can only be used at the specific retailer who offers the credit.

Credit Limit

• allows the user to directly withdraw from the checking account for the purchase.

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

•  the maximum amount of credit the cardholder is allowed to borrow or owe; sometimes known as Credit Line.

• the yearly interest rate at which the debt is charged. 

• same as a credit card but can only be used at the specific retailer who offers the credit.

Annual Percentage Rate (APR)

• allows the user to directly withdraw from the checking account for the purchase.

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

•  the maximum amount of credit the cardholder is allowed to borrow or owe; sometimes known as Credit Line.

• the yearly interest rate at which the debt is charged. 

• same as a credit card but can only be used at the specific retailer who offers the credit.

Retail Credit Card

• allows the user to directly withdraw from the checking account for the purchase.

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

•  the maximum amount of credit the cardholder is allowed to borrow or owe; sometimes known as Credit Line.

• the yearly interest rate at which the debt is charged. 

• same as a credit card but can only be used at the specific retailer who offers the credit.

Promotional Period

•  the amount of interest owed but will be forgiven if the amount of purchase on the debt is paid in full by the time the  promotional period ends.

• the accumulated interest owed on the debt since the purchase was made.

•  same as Credit Limit.

•  the time period when no interest is charged on the purchased; exist on all credit cards, not a special offer.

• the time period when no interest is charged on the purchase if the debt on the purchase is paid by the end of the promo period; exists only as the retailer’s special offer.

 Deferred Interest

•  the amount of interest owed but will be forgiven if the amount of purchase on the debt is paid in full by the time the  promotional period ends.

• the accumulated interest owed on the debt since the purchase was made.

•  same as Credit Limit.

•  the time period when no interest is charged on the purchased; exist on all credit cards, not a special offer.

• the time period when no interest is charged on the purchase if the debt on the purchase is paid by the end of the promo period; exists only as the retailer’s special offer.

Accrued Interest

•  the amount of interest owed but will be forgiven if the amount of purchase on the debt is paid in full by the time the  promotional period ends.

• the accumulated interest owed on the debt since the purchase was made.

•  same as Credit Limit.

•  the time period when no interest is charged on the purchased; exist on all credit cards, not a special offer.

• the time period when no interest is charged on the purchase if the debt on the purchase is paid by the end of the promo period; exists only as the retailer’s special offer.

Grace Period

•  the amount of interest owed but will be forgiven if the amount of purchase on the debt is paid in full by the time the  promotional period ends.

• the accumulated interest owed on the debt since the purchase was made.

•  same as Credit Limit.

•  the time period when no interest is charged on the purchased; exist on all credit cards, not a special offer.

• the time period when no interest is charged on the purchase if the debt on the purchase is paid by the end of the promo period; exists only as the retailer’s special offer.

Credit Line

•  the amount of interest owed but will be forgiven if the amount of purchase on the debt is paid in full by the time the  promotional period ends.

• the accumulated interest owed on the debt since the purchase was made.

•  same as Credit Limit.

•  the time period when no interest is charged on the purchased; exist on all credit cards, not a special offer.

• the time period when no interest is charged on the purchase if the debt on the purchase is paid by the end of the promo period; exists only as the retailer’s special offer.