Credit Card Vocab

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What is the Monthly Finance Rate?

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The Monthly Finance Rate is the Annual Percentage Rate (APR) divided by 12 months.

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What is an Overdraft Fee?

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An Overdraft Fee is the extra money you must pay if you go over your credit limit.

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What does APR stand for?

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APR stands for Annual Percentage Rate, which is a credit card's yearly interest rate.

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What is Debt?

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Debt is the state of owing somebody money.

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What is a Late Fee?

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A Late Fee is the extra money you must pay if you do not pay your bill on time.

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What is Interest in terms of credit cards?

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Interest is the cost of borrowing money, typically expressed as a percentage of the amount borrowed.

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What is a Credit Score?

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A Credit Score is a numerical representation of a person's creditworthiness, based on their credit history.

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What is the Minimum Payment?

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The Minimum Payment is the smallest amount you can pay on your credit card bill to keep your account in good standing.

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What happens if you miss a payment?

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If you miss a payment, you may incur a Late Fee and your credit score may be negatively affected.

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What is a Credit Limit?

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A Credit Limit is the maximum amount of credit that a lender will extend to a borrower.