Say Credit Cards

Since many people would like to have a credit card it is important to understand the terms that come with using a credit card. Read further to familiarize yourself with credit card terminology.

Card Holder Agreement: This is a pre-requisite before becoming a card-holder. This document outlines the details of your credit card along with the credit card plans.

Average Daily Balance: A most important number, it serves a basis on how interests will be applied to your account.

Balance Transfer: This is where you transfer funds from one account to another account.

Cash Advance Fee: Whenever you take out some cash on the ATM using your credit card, you need to pay a fee and this is the Cash Advance Fee. Understand that this cash advance fee is higher than your usual interest rates.

Minimum Payment: This is the smallest amount of payment required by the credit card providers from the card holders. The minimum payment should be settled within a month.

Finance Charge: This is the charge for the entire due made from all the purchases. This is determined by two factors namely: the balance and the interest rate.

Variable Interest Rate: This is the amount of money that the credit card holders need to deposit for their account to acquire a balance.

Pre-Approval: This doesn’t mean that you can already own a credit card right away when we say pre-approval this means you have a better chance of having a credit card.