Terms associated with credit

What does annual fee mean?

• Charged by a credit card company each year for use of a credit card.

• This is the annual interest rate you will be charged if you carry balances on a card

• The card member agreement spells out a card's terms and conditions

• When you have a credit card, it is often possible to add an additional card to the account for use by someone else.

Someone who agrees in writing to repay the debt if the borrower fails to do so. The account shows on both borrower's and the co-signer's credit reports.

• True

• False

A Private report on your payment habits as reported by creditors to a consumer credit reporting agency.

• Annual fee

• Card member agreement

• Additional cardholder

• Credit report

Information reported by your current and past creditors including credit balances, number of on-time or late payments, and number of credit accounts. All of which are shown on your credit report.

• Additional cardholder

• Credit report Items

Credit limit is the amount of interest charged on a loan or credit card.

• False

• True

The amount of interest charged on a loan or credit card.

• Credit limit

• Finance charge

What is the definition of Grace period

• Secured credit cards require collateral usually a cash deposit with the issuing institution for approval.

• A linked transfer account is one in which a consumer's checking account is linked to another account at the same bank.

• The time you have to pay a bill in and avoid any additional interest charges and late fees.