Credit Cards

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

Credit card pages explain the account type most people interact with most often in consumer credit. This section covers the core product, the way balances move, and the special features or offers that can change the account’s real cost.

Use these pages when reading card disclosures, comparing offers, or sorting out what kind of card account you already have.

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In this section

  • Credit Card
    Revolving account used for purchases, carried balances, and repayment up to an approved credit limit.
  • Credit Card Issuer
    Credit card issuer means the bank or company that provides the card account, sets the terms, and bills the borrower.
  • Unsecured Credit Card
    Unsecured credit card means a card account that is not backed by a cash security deposit.
  • Charge Card
    Charge card means a card account that typically requires the full outstanding balance to be paid by the end of each billing cycle.
  • Rewards Credit Card
    Rewards credit card means a card that offers points, cash back, miles, or similar benefits tied to account use.
  • Store Credit Card
    Store credit card means a card account tied mainly to a retailer or retail brand, sometimes with narrower use than a general-purpose card.
  • Prescreened Credit Card Offer
    Prescreened credit card offer means a card offer sent after softer screening of credit-report criteria rather than a full final application review.
  • Balance Transfer
    Balance transfer means moving debt from one credit account to another, usually from one credit card to a different card.
  • Balance Transfer Fee
    Balance transfer fee means a fee charged for moving debt from one account to a credit card under a balance-transfer offer.
  • Statement Balance
    Statement balance means the amount shown as owed at the close of a credit-card billing cycle.
  • Current Balance
    Current balance means the live amount presently owed on a credit-card account.
  • Credit Balance
    Credit balance means the card issuer owes the consumer money because credits or payments exceed what is currently owed on the account.
  • Statement Credit
    Statement credit means a credit applied to a card account that reduces the amount owed or increases a favorable account balance.
  • Average Daily Balance
    Average daily balance means the billing-cycle average of the account’s daily balances, which many issuers use when calculating interest.
  • Daily Periodic Rate
    Daily periodic rate means the daily interest rate used by some card issuers to calculate interest on the balance from day to day.
  • Minimum Interest Charge
    Minimum interest charge means the smallest amount of interest an issuer may charge in a billing cycle when interest is owed.
  • Grace Period
    Grace period means the time in which a credit-card balance can be paid without triggering purchase interest under normal terms.
  • Payment Allocation
    Payment allocation means the order in which a card issuer applies a payment across balances with different rates or transaction types.
  • Returned Payment Fee
    Returned payment fee means a fee charged when a card payment is rejected or not honored by the payment source.
  • Residual Interest
    Residual interest means interest that continues to accrue between the prior statement date and the date a carried balance is fully paid.
  • Deferred Interest
    Promotional financing where interest is postponed at first but can still become due later under the offer terms.
  • Late Fee
    Late fee means a charge assessed when the required payment is not made by the due date.
  • Cardholder Agreement
    Contract explaining how a credit-card account works, what it costs, and which rules apply.
  • Cash Advance
    Cash advance means credit-card borrowing taken as cash rather than as a standard purchase.
  • Chargeback
    Card-network dispute reversal process used when an issuer pushes a challenged transaction back through the payment system.
  • Cash Advance Fee
    Cash advance fee means a fee charged when a card is used for cash-advance borrowing instead of a standard purchase.
  • Unauthorized Use
    Unauthorized use means a card account or card number is used without the consumer’s permission to make transactions.
  • Penalty APR
    Penalty APR means a higher annual percentage rate that may apply after serious account problems such as late payment.
  • Annual Fee
    Annual fee means a recurring charge for keeping a credit-card account open.
  • Intro APR
    Intro APR means a temporary promotional annual percentage rate offered for a limited period on a credit card.
  • Foreign Transaction Fee
    Foreign transaction fee means an added charge for certain purchases processed outside the borrower's home currency or country.
Revised on Friday, April 24, 2026