7.2 + 7.3 Flashcards
credit statement
A periodic report that credit card companies issue to credit card holders showing their recent transactions, balance due and other key information.
billing cycle
The time period between when credit statements are sent to borrowers, which is usually about one month.
statement date
The last day of the month for which any transactions are reported on a credit card statement.
payment due date
The specific day by which the credit card company should receive payment from the cardholder.
transaction date
The date on which a credit cardholder makes a purchase or receives a credit
posting date
The month, day, and year when a credit card issuer processes a credit card transaction and adds it to the cardholder’s account balance.
minimum payment
The amount due monthly on a credit card statement that is no smaller than the amount required by the creditor.
transaction fees
Whenever a credit card is used for a balance transfer or cash advance such fees are charged to the account.
credit receipt
Written evidence of any items returned that notes on a credit card statement the specific amount of the transaction, which will be charged back to the credit card company and eventually to the merchant.
penalty rate
The very high interest rate charged by the credit card issuer when a borrower violates the card’s terms and conditions.
rewards credit cards
One that pays the cardholder cash back or airlines miles for future use.
periodic rate
is the APR for a charge account divided by the number of billing cycles per year (usually 12)
average daily balance
This is the sum of the outstanding balances owed on a credit card each day during the billing period divided by the number of days in the period.
credit card liability
if you notify the card issuer within two days of a loss or theft, you are not legally responsible for any fraudulent usage of the card.
teaser rate
is the annual percentage rate charged by the credit card issuer during an initial period.