A Credit Card Glossary Of Terms
Keywords: credit card, online credit card, credit card services, online credit card
The Credit card industry comes with a lot of jargon. You can’t be expected to recognise all the technical phrases employed and some of them could be very important. Listed below you will find a quick description of the most common credit card industry related terms and phrases.
Affinity card
A credit card that makes a donation to a charity of your choice based up on how much you spend. In most cases it’s best to avoid a charity that encourages you to sign up for such a card. Chances are such a credit card has a higher interest rate than the standard. Don’t let guilt cloud your judgement.
APR (Annual Percentage Rate)
calculated yearly this is your overall interest rate presented as a percentage of your credit card balance.
ATM (Automated Teller Machine)
A cash machine. Utilized to withdraw money direct from your credit card, although in general a fee will also be charged.
Balance transfer
When you transfer your debt ‘balance’ from one credit card to another. The usual reason for this is to try and keep as much debt as possible on a lower-interest card.
Credit limit
Your credit limit is the maximum amount you can spend or withdraw on your credit card. Spending beyond your credit limit will result in your card no longer being accepted, and you being charged an over-limit fee.
Fixed rate
A fixed rate credit card is one which indicates that you are given a fixed rate on sign up which should stay the same for the period you have the credit card. In practice though interest rates can be changed for almost any reason.
Grace period
The grace period is the amount of time between your spending with the credit card and the time when you start paying interest on that spending. The best credit cards can have a grace period of up to two months, poorer cards may not have one at all.
Minimum payment
The minimum payment is the lowest amount you can pay back to the credit card company each month. You always try to pay more although this is not necessary. Paying only the minimum amount you are not paying back the money borrowed but only the interest. Minimum payments are usually around 2% of your balance.
Sub-prime
A phrase used in the finance industry to describe customers who are a bad credit risk, but are considered worth lending to as the bad credit risk allows the finance company to charge higher fees.
Teaser rate
A ’special offer’ low rate. You will see many offers with “LOW 4.9% APR” in the headline followed by “for first six months, 21.9% thereafter” in the small print. Teaser offers can sometimes be worth taking, but not if they tie you in for longer than the period of the offer.
Variable rate
An interest rate that is calculated by adding a figure to the current base rate. Taking this option will allow your credit card to be affected by changes in national interest rates - a good idea if you think they might go down, and a bad one if they’re on the way up.
Credit repair, Debt problems, need a Loan, Mortgage help… not sure what to invest in? www.1stfinanceguide.com may have the advice you’ve been searching for. Hundreds of useful articles on all aspects of Finance are available to help.
Previous Articles Highlighter:
How To Check Your Credit Rating And How It Affects You (1)
Believe it or not there is a history of all the debts you've had in the past ten years or so, and special note is made of anything that has gone wrong.
Are You Considering Bankruptcy? Wait! (2)
Speak to a Lawyer! You may believe you can't afford one, but many are willing to work for free for those who really need a lawyer but are unable to pay.
Stop Saving If You Have Debt! (3)
It's money you should have been spending instead of making purchases with a credit card. Of course, it feels bad to spend money thinking that you're spending away your future - but always bear in mind that when you use a credit card to spend that same money, you're spending away your future, plus interest.
Choosing The Right Auto Insurance For You- How To Compare Auto Insurance Quotes? (4)
The options include: Auto Insurance Liability Coverage Liability Coverage Medical Payments Coverage Underinsured/Uninsured Motorists Coverage Auto Insurance Property Coverage Collision Coverage Comprehensive Coverage Additional Auto Insurance Coverage Personal Injury Protection Custom Additional Coverage options Are you searching for the right kind of insurance for your automobile?
Understanding UK Life Insurance Cover (5)
There is more difference than just the names. Critical illnesses are defined by the insurance company so check to see which ones are covered. When you consider the fact that being diagnosed with a critical illness such as a heart attack or vision loss doesn't necessarily mean you will die but may mean you're no longer be able to hold down your job, this type of additional UK life insurance cover make sense.
Credit Score An Introduction (6)
Your credit score is based on your past financial responsibilities and past payment records and credit and it provides potential lenders with an easy snapshot of your current financial state and past repayment habits.
Create An Action Plan To Deal With Your Poor Credit Score (7)
This article allows you to develop a similar strategy on your own in your own time and at your own cost. When developing your action plan, know where most of your credit score is coming from: 1: Credit history (can account for more than a third of your credit score).
A Brief Commercial Mortgage Guide (8)
Interest rates are determined by the US Federal government. Make sure you understand how variable rates are determined. Also, find out from the lender how often the rate on a variable rate mortgage will change.
Insurance Glossary Of Terms (9)
You can choose insurance that pays out on death a guaranteed sum only, the sum plus any bonuses that have been added, or the sum plus any additional value from the growth of the funds invested in.
Debt A Glossary Of Terms (10)
Guarantor - A person who makes a legally binding promise to either pay another person's debt or perform another person's duty if that person defaults or fails to perform. Interest - A commission you pay a bank or other creditor for lending you money or extending you credit.
Mortgage Glossary Of Terms (11)
It is the borrowers responsibility to ensure that enough funds will exist (either through an investment policy or other means) to repay the full mortgage at the end of the term.
Utilise Your Tenants (12)
If they know of any vendors that may be looking to sell, please let me know. This is another way to find that elusive deal. I am happy to pay the tenant a finders fee for this service.
How To Buy Your First Investment Property (13)
You could start off by advertising in your local newspaper. Typical adverts might read: "Properties wanted. Cash buyer waiting, any area considered" "Repossessions stopped. Don't wait for your house to be repossessed.
Holiday Insurance - A Very Valuable Expense Indeed (14)
Many policies will provide you with 24 hour emergency assistance. The coverage provided by these policies differs sometimes, but for the most part they cover your holiday in case of cancellation by you in case of emergency, or if your airline cancels on you.
Individual Health Insurance Plans - What You Need To Know Before You Buy (15)
If you are a young healthy person you are going to have a much easier time getting coverage. On the contrary, if you have a serious medical condition it may be excluded from the policy, yet you must be up-front about that information.
UK Pension Gap 'Widens' (16)
However, with this in mind, only six per cent of consumers in the age bracket feel "totally unconfident" that they will not be able to put enough money away to fund a "comfortable retirement".
Repossessions Levels 'Increasing' (17)
Meanwhile, the financial services provider suggested that the number of repossessions could be set to go beyond the 45,000 barrier next year - a rate of 124 per day. Commenting on the study, Rics economist Oliver Gilmartin said: "With the full impact of interest rate rises in 2007 yet to filter through into higher mortgage costs we continue to expect a rise in the number of homes going under the hammer into 2008.
What Is A Debt Consolidation Loan? (18)
With the cost of higher education becoming more expensive the vast majority of students require some type of financial aid. Student loans play a big part of that financing.
Homeowners 'Feel Pressure' Of Interest Rate Rises (19)
For those concerned that they are taking too much money out of their savings accounts, opting for a low-rate loan could well be an advisable way in which to consolidate debts and other areas of financial pressures into a more manageable situation.
Vintage Sports - Car Club (20)
However this is not the case at all as anyone can join, the only thing you need is a passion for vintage cars. People join for various different reasons from those who want to participate in any of the competitive events that are held every year, to people who enjoy looking at the cars on display at meetings to those who want to know where they can find cheap vintage car insurance.
Newer Articles Highlighter:
Cheapest UK Life Insurance (1)
No one likes to think about his or her mortality but that's just what purchasing life insurance forces you to do. If you're healthy and you've already got investment vehicles in place, then generally all you'll need is a no-frills term policy.
Tips For Purchasing Cheap Term Life Insurance (2)
Online and off, life insurance is big business and it's also very competitive. If cheap term life insurance is something you're after, keep the following in mind. Cheap term life insurance may not be the good deal you think it is if the agency is not around to pay out your benefits once you do pass away.
Heart Attacks And Cheap Life Insurance (3)
That is how waiting a year or so to apply will improve your chances of getting cheaper life insurance, especially if you take time to shop around. Find Cheap Life Insurance at www.life-insurance-online.co.uk.
Finding Cheap Term Life Insurance Is Easy (4)
Having a fixed monthly payment for a fixed number of months makes it much easier when you're trying hard to manage your finances. With cheap term life insurance, you get a lot of peace of mind for a relatively small monthly investment.
Life Insurance Cover Quote (5)
A critical illness may not cause death, but it can cause you to lose your job. Critical illness cover will pay you a lump sum should you be diagnosed with one of the covered illnesses during the term of your life insurance.
Why Use Bridging Finance? (6)
The property market has numerous opportunities but many can be left on the shelf. Either through the chain collapsing or the lender not having funds in place quickly enough.
Whole Life Vs. Cheap Life Insurance (7)
No one has to approve a loan made against your whole life insurance cash value. You are the one who gets to decide how you'll use the money. If you're not restricted to purchasing only the cheapest life insurance, whole life is an option worth considering.
Cheap Life Insurance Something Else To Consider (8)
They usually won't have to take a medical exam. In other words, an employee is insurable even if he or she has a preexisting medical condition. When you're looking for cheap life insurance, don't overlook your employer.
How To Choose The Best Life Insurance Policy (9)
The easier of the two is "term" life insurance. This policy will be in effect for a pre-defined period of time. Term life insurance can be purchased for 1 year, up to 30 years, or any period of time in between.
Why Cheap Term Life Insurance Isn't Always So Cheap (10)
When you live long there is less chance that the insurance company will have to pay out your policy's death benefits. In other words, if you outlive your cheap term life insurance policy, the insurance company comes out ahead.
Factors Used In Calculating Term Life Insurance Quotes (11)
One thing many applicants don't consider when requesting a term life insurance quote is the rate of inflation. It's certain to have an impact on the cost of goods.
Steps To Eliminating Debt (12)
Clearing the loan that takes the highest payment every month has the biggest effect on your bank balance every month. Clearing the loan that has the least number of monthly payments left has the fastest effect on your monthly bank balance.
Life Insurance Money Saving Tips (13)
If you are replacing a policy, make sure you allow enough time to get your new policy in place so coverages won't overlap or lapse. Don't overspend on protection.
How Easy Is It To Get A UK Commercial Mortgage? (14)
Your broker will be your representative and act as an ambassador between you and the mortgage lenders. A commercial mortgage broker provides you with the flexibility to approach multiple lenders easily.
Closing A Commercial Mortgage The Easy Way (15)
Clear what you can before you get to closing the deal, in this way you can give the mortgage agreement your full attention rather than worry about the other jobs that still need to be done.
Is Bridging Finance For You? (16)
You will also want to check on the type of interest rate and the costs you will entail if you do have to convert. Most Commercial Lenders will be willing to extend the terms of your Bridging Finance package.
Borrowing Difficulties 'Likely To Increase' (17)
The non-standard population is made up of those individuals who have been denied credit by mainstream lenders on a number of occasions. This could be as a result of unemployment, county court judgements (CCJs) a record of bankruptcy or reliance upon income support, among other factors.
Budgeting 'Is Key' To Improving Financial Skills (18)
The findings also revealed that just over a fifth (21 per cent) of young women believe that they will never get into debt. Although this proportion rose to 40 per cent of men in the 18 to 24 age bracket, Andrew Smith, marketing director for ClearDebt, claimed that many males "are being rather over-optimistic" about their views on their future monetary situation.
Are Your Bonds Really Risk Free? (19)
If inflation is moderate or contained, the Fed will likely leave rates unchanged. However, if the economy is slowing down and there is very little inflation or maybe even deflation, then the Fed might decide to reduce interest rates to create a stimulus for economic growth.
School Fees 'Impact Heavily Upon Parents' Finances' (20)
Commenting on the study, James Saunders Watson, head of sales and marketing for investment trusts at JPMAM, claiming that by organising their finances and making regular savings parents could help reduce pressure on their monthly outgoings.