Credit Cards

Annual fee means a recurring charge for keeping a credit-card account open.

Average daily balance means the billing-cycle average of the account’s daily balances, which many issuers use when calculating interest.

Balance transfer means moving debt from one credit account to another, usually from one credit card to a different card.

Industry-specific score designed to help card issuers evaluate risk for revolving and credit-card lending decisions.

Credit card issuer means the bank or company that provides the card account, sets the terms, and bills the borrower.

Prescreened credit card offer means a card offer sent after softer screening of credit-report criteria rather than a full final application review.

Contract explaining how a credit-card account works, what it costs, and which rules apply.

Cash advance means credit-card borrowing taken as cash rather than as a standard purchase.

Cash advance fee means a fee charged when a card is used for cash-advance borrowing instead of a standard purchase.

Charge card means a card account that typically requires the full outstanding balance to be paid by the end of each billing cycle.

Card-network dispute reversal process used when an issuer pushes a challenged transaction back through the payment system.

Credit balance means the card issuer owes the consumer money because credits or payments exceed what is currently owed on the account.

Revolving account used for purchases, carried balances, and repayment up to an approved credit limit.

Credit-card terms that explain account structure, pricing choices, and common card features in everyday consumer use.

Current balance means the live amount presently owed on a credit-card account.

Daily periodic rate means the daily interest rate used by some card issuers to calculate interest on the balance from day to day.

Promotional financing where interest is postponed at first but can still become due later under the offer terms.

Foreign transaction fee means an added charge for certain purchases processed outside the borrower's home currency or country.

Grace period means the time in which a credit-card balance can be paid without triggering purchase interest under normal terms.

Intro APR means a temporary promotional annual percentage rate offered for a limited period on a credit card.

Late fee means a charge assessed when the required payment is not made by the due date.

Minimum interest charge means the smallest amount of interest an issuer may charge in a billing cycle when interest is owed.

Payment allocation means the order in which a card issuer applies a payment across balances with different rates or transaction types.

Penalty APR means a higher annual percentage rate that may apply after serious account problems such as late payment.

Residual interest means interest that continues to accrue between the prior statement date and the date a carried balance is fully paid.

Returned payment fee means a fee charged when a card payment is rejected or not honored by the payment source.

Rewards credit card means a card that offers points, cash back, miles, or similar benefits tied to account use.

Statement balance means the amount shown as owed at the close of a credit-card billing cycle.

Statement credit means a credit applied to a card account that reduces the amount owed or increases a favorable account balance.

Store credit card means a card account tied mainly to a retailer or retail brand, sometimes with narrower use than a general-purpose card.

Balance transfer fee means a fee charged for moving debt from one account to a credit card under a balance-transfer offer.

Unauthorized use means a card account or card number is used without the consumer’s permission to make transactions.

Unsecured credit card means a card account that is not backed by a cash security deposit.