Credit Card Vocabulary Flashcards
This is the charge from a credit card company each year for use of that credit card. Not all credit cards have this fee
Annual Fee
The amount of money owed on a credit card account
Balance
Credit is borrowed money that you can use to purchase goods and services for which you are agreeing to pay back over time. Credit is a promise that you make to pay someone later. A seller lets you have an item right now, and you promise to pay them back.
Credit
This is a payment card in which the credit card company pays for an item and gives the customer the ability to pay off the full balance over time. The card essentially allows the cardholder to borrow money to make a purchase and charges interest until that amount is paid back in full
Credit Card
A credit card company set limits on how much you can change on your card. This limit is based on your ability to handle debt.
Credit Limit
Debit cards are different from credit cards. Debit cards allow you to make purchases similar to a credit card and also gives you access to ATMs. It is the equivalent of writing a check but with the convenience of a credit card. Debit cards deduct the specified amount directly from your checking account.
Debit Card
This is the money that is owed to someone else. For example, if you have credit card debt, it means you still owe more money to the credit card company.
Debt
This is the day your payment is due. After the due date, you may be assessed a late payment fee.
Due Date
This is the percentage of the credit card balance that you are charged when using a credit card. It is also referred to as Annual Percentage Rate (APR). Because you are borrowing money when you use your credit card, you are charged interest when you don’t pay the bill in full. Rates can vary depending on the credit card and your borrowing history.
Interest Rate
Credit card companies charge you a late fee if you don’t pay your bill by the due date. Paying late is costly.
Late Payment Fee
The least amount you can pay to keep the card active. If you pay less, your card will be deactivated.
Minimum Payment
This unique number connects the card to your account
Account Number
This is the date that the credit card is valid until
Expiration Date
This is the name of the card holder.
Name
This chip is used to insert the card instead of swiping. It makes your card more secure and more difficult for thieves to make unauthorized purchases with.
Chip
