19 terms

Lesson 13: Credit Card Craze

STUDY
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Terms in this set (...)

accrued interest
interest that accumulates over time.
balance transfer
transfer of the debt on a credit card at one company to a credit card issued by another company.
billing cycle
the interval of time between billings during which all transactions occurring in that time are posted to the account.
billing statement
a written summary of everything that happened on the credit card account in a billing cycle.
cash back
a type of credit card incentive that reimburses the cardholder a small percentage of the amount of the purchases made with the credit card.
charge card
a type of card which balance must be repaid in full each month.
closing date
the last day of a credit card billing cycle.
credit card
a small plastic card allowing the cardholder to make purchases with money borrowed from the credit card provider.
credit card default
failure to meet the credit card's minimum monthly payment for several months.
credit limit
the maximum amount the cardholder can borrow using a particular credit card.
delinquency
a late or overdue credit card payment.
grace period
a set period of time within which charges made in that billing period may be paid without interest.
installment loan
a loan that is repaid in equal payments over a specified period of time; automobiles, furniture and major appliances often are financed this way.
line of credit
a type of loan enabling the borrower to borrow money at any time, as needed; the loan is often secured by the borrower's home.
minimum monthly payment
the lowest amount that can be paid on the credit card that month to avoid a delinquency and late payment fee.
non-revolving credit
a loan that is made once, repaid over time and terminated; an installment loan is non-revolving credit.
payment due date
the last day a payment can be received before a late charge applies.
revolving credit
a loan that is constantly renewed in full or in part as it is repaid on a monthly basis; credit cards are revolving credit.
rewards points
a type of credit card incentive whereby purchases made on the credit card earn points that can be redeemed for goods, such as airline tickets or gasoline.