Credit Card
A small plastic card issued by a bank or business, allowing the holder to purchase goods or services on credit
Credit Card Statement
Monthly statement listing the purchases, payments and other debits and credits made to your credit card account within the billing cycle.
Billing Cycle
The period of time between billings, usually about 30 days
During the billing cycle, purchases, credits, fees, and finance charges are posted to your account. At the end of the billing cycle, you are billed for all unpaid charges and fees made during the billing cycle. Your credit card payment is due 20-25 days after your billing cycle ends
Account Number
The primary identifier of ownership of an account
All credit cards have their own account number
Total Credit Limit
Credit limit also refers to the maximum amount a credit card company will allow someone to borrow on a single card
Credit limits are usually determined based on information contained in the application of the person seeking credit, or that person's credit rating.
Total Available Credit
The amount of unused credit
Example: If your Total credit limit is $500, and you have used $150,
then your total Available Credit is $350
Statement Date
The date on which a statement (bill) is generated, and the month's finance charges (interest) are added to the balance.
The statement date is usually the same date every month
Minimum Payment
The minimum payment is the lowest amount of money that you are required to pay on your credit card statement each month
The industry standard is now to calculate the minimum in one of two ways: either 3%-5% of the total balance due, or, all fees and interest due that month, plus 1 percent of the principal amount owed.
Payment Due Date
The date on which your payment is due
Most credit cards do not have a payment grace period
If you are even one day late, you will be charge a late fee
Balance Summary
A summary of your payments, purchases, and previous balance during the billing cycle
Payments/Credits
Any payments made or credit received during the billing cycle
Refunds are an example of credits received
A credit is money that is given back to you
Purchases/Debits
Purchases-anything you have bought against your credit
Debit-the recording of an entry of debt; an amount taken out of your account
Transaction Summary
A list of all transactions made on your account
Include anything you have purchased, payments you made, any credits (refunds) received
Summary will include the date of the transaction, the day it was posted to your account, a description of the transaction and the amount of the transaction
Interest Charge Calculation
A summary of the method used to calculate the finance charges on your credit card account
Annual Percentage Rate
The interest rate charged annually for the use of credit, expressed as a percentage