Understanding Credit Card Terms
By: James Johnson Credit Card terms can be confusing, nonsensical, and an overall headache. In this article we will examine several Credit Card terms and their meanings. These terms were requested by our visitors, if you would like more information on any form of credit term, and what they mean to you, feel free to email us at our contact us link as the bottom of the page.
1.)Annual FeesA fee paid on a yearly basis in order to use a creditors credit card. This fee is sometimes broken up into 12 installments and paid each month over the period of the year. Annual Fees are often associated with Poor Credit Credit Cards.
2.)Co-SignerThis is a secondary individual who signs for a line of credit for another individual. While they may not be using the credit themselves, it is their responsibility to pay off any debts on the account that are not paid by the user.
3.)Credit ScoreA credit score is a number that indicates the measure of a consumer's credit risk at a particular point in time. Credit scores are calculated from information contained in a consumer's credit report using a standardized formula.
4.)DeliquentAccounts classified into categories according to the time past due. Common classifications are 30, 60, 90 and 120 days past due. Special classifications also include charge-off, repossession, transferred, etc.
5.)FICO ScoreThis is the actual Credit Score number. It is a calculation that helps to determine the associated risk that companies place on the credit applicant. While the actual equation is not known outside of the three major credit bureaus, it is believe to be a complex equation involving many variables.
6.)Finance ChargeAmount of interest. Finance charges are usually included in the monthly payment total.
7.)Fixed RateAn annual percentage rate that does not change.
8.) Line Of CreditIn open-end credit, the maximum amount a borrower can draw upon or the maximum that an account can show as outstanding.
9.)Revolving AccountCredit automatically available up to a predetermined maximum limit so long as a customer makes regular payments. |
