Installment or Closed-end credit
One time loan that the borrower must repay in a specified number of equal payments within a specific time frame.
Revolving or open-end credit
Type of credit limit that is established and the borrower can continue to borrow on the credit as long as the limit isn't exceeded.
Retail credit card
An account which allows for customers to make credit card purchases at a particular retail store such as Nordstrom or REI
Bank credit card
Flexible credit card issued through a financial institution and can be used to make purchases anywhere it is accepted around the world
A credit card made available by a financial institution with the logo of a sponsoring organization that is often non-profit
A high status credit card which requires higher credit qualifications and offers special benefits and higher credit limits
This type of card requires that the balance be paid in full at the end of the billing cycle
Federal Truth in Lending Ac
Act/law which requires lenders to disclose the terms associated with a credit card account.
Amount of time in days that is allowed before finance charges are applied to a purchase made on a credit card.
Annual Percentage Rate which is the interest rate charged on the amount borrowed in terms of dollars per year
Balance Calculation Method
Method used to determine the balance for which finance charges are accumulated
Personal, tradelines/credit history, public information and inquiries
Four categories of information found on a credit report
Late payment fee
A fee charged when the cardholder does not make the minimum monthly payment by the due date
A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments.
A below-market interest rate offered to entice customers to switch credit cards or lenders, usually offered for a specific period of time such as 3 months or one year
Foreign Currency surcharge
A new charge imposed by some credit card issuers that imposes a fee on purchases made in a foreign country.
The fee paid by retailers to banks and card issuers for every transaction they process. A PIN-based transaction costs less than a signature-based transaction
A fee assessed when a credit card or a gift card is not used for an extended period of time