Defining Common Credit Card Terms
by: John Mussi
As important as credit cards are in the modern world, you might be surprised how many people don't know as much about them and how they operate. This isn't necessarily because of any shortcomings of the individuals, but instead because of the ease of using credit cards without having to understand all of their subtleties.
Should you wish to learn more about how credit cards work and the terminology associated with them, read on? the information contained below doesn't cover the entire subject of credit cards and how they work, but it should provide you with some additional information and help you to understand a little bit more about these common cards that seem so essential and so mysterious at the same time.
Periodic Rate
The periodic rate of a credit card is the amount of interest that is charged for a single period of the year, usually the span of a single payment. The periodic rate can fluctuate from month to month, particularly in times of economic turmoil or when national interest rates are changing rapidly.
Annual Percentage Rate (APR)
The annual percentage rate (APR) is an average of the rates that are charged over the course of a year, and is usually based upon national interest rates with an additional percentage added which may vary from one card provider to another. By looking at the annual percentage rate (APR), individuals can estimate approximately how much they will have to pay in interest on the balance that they carry throughout the year.
Rewards Programs
A variety of different credit card rewards programs exist, which are additional incentives that are designed to convince individuals to apply for a specific card instead of those that are offered by rival banks or companies. The rewards offered can be just about anything, though the most common types of rewards programs involve receiving cash back from purchases (either instantly or once per year), receiving free airline miles that can be exchanged for airline tickets, instant discounts on purchases (especially large purchases), and even specialized services related to travel, hotel stays, or automotive rentals.
Grace Period
The ?grace period? on a credit card is a brief window of opportunity that a cardholder has to allow them to pay off the card balance before interest is applied. Generally, the grace period on most cards is between 25 and 30 days? some cards offer slightly longer or shorter periods, however, and others offer very little in the way of a grace period at all. Any balance remaining on the card after the grace period expires will be charged interest at the current rate.
Introductory Rates
Introductory rates on credit cards serve much the same function as rewards programs, offering a much lower interest rate on the card for a period of a few months so as to get people to take out one company's card over another. Once the introductory term expires, the interest rate of the card returns to the card's standard rate.
Preset Credit Limits
Most but not all cards have preset credit limits, meaning that when an individual receives the card they already have a limit on how much money they can charge to the card before the credit card server declines the transaction. For cards that do not have a preset credit limit, a limit is usually given to the card within a few months of the card being issued. Unlimited cards also tend to require the entire balance to be paid at the end of each month, not allowing a larger and larger balance to be built up over time.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
|
How to Manage Your Money When Working Overseas
How to Manage Your Money When Working Overseas
by: Rhiannon Williamson
It?s a fact that employers look favourably on a resume that presents an independent, dynamic individual who has an open mind and has seen more of the world than their own back yard.
With this fact in mind a greater number of people are taking time away from their studies and careers nowadays and spending a period of time travelling or working overseas.
If you?re considering taking a similar path this article will help you get your head around managing your money when travelling, living or working abroad ? once your finances are in order you can spend the whole of the rest of the time having fun, exploring the wider world and meeting many new faces!
Even if you?re planning a prolonged period of expatriation you should keep your local bank account open.
You can then manage money and expenses back home more easily if needs be, and maybe even send...
Home loans > How to Manage Your Money When Working Overseas
Finding the Best Homeowner Loans for Your Money
Finding the Best Homeowner Loans for Your Money
by: John Mussi
Looking for the best homeowner loans can be stressful, especially when there are so many different lender options to choose from.
Banks, finance companies, and online services all claim to offer the best homeowner loans? which one should you choose?
The answer can depend upon what you're wanting out of a loan, what past business relationship you have with the lender in question, and the amount of equity that you have in your house to use as collateral for the loan.
Each type of lender has its own criteria for offering the best homeowner loans, but as long as you have enough equity you should be able to find a loan regardless of your credit history.
Bank loans
When looking for the best homeowner loans at local banks, you should always start with the bank or banks that you hold personal accounts with. Banking is a business, and just like any business your...
Finding the Best Homeowner Loans for Your Money
Home loans > Finding the Best Homeowner Loans for Your Money
Lending Company Puts Forth A New Philosophy
Lending Company Puts Forth A New Philosophy
by: Ronald Burgans
An interesting concept is being put forward by a company called Global Equity Lending which,
according to them,is rooted in the fact that building a secure financial future is more difficult than
ever.The rules are changing and perhaps the old practices need to be revamped.GEL calls its new
philosophy, "Harnessing The Power of Your Mortgage"
In 2004,credit card debt accounted for over half of the $2.1 trillion of consumer debt in the U.S.,
quadrupling over the last decade.Today,the average American household has $9,000 of credit card
debt at 16% interest.To pay that average off,at that interest rate would take ten years,totaling over
$8,000 in interest when all is said and done.The financial impact of this,which is virtually unrealized
is devastating.GEL claims to have a better way.Their thinking is that since you must borrow money
over the coarse...
Lending Company Puts Forth A New Philosophy
Home loans > Lending Company Puts Forth A New Philosophy
Defining Common Credit Card Terms
Defining Common Credit Card Terms
by: John Mussi
As important as credit cards are in the modern world, you might be surprised how many people don't know as much about them and how they operate. This isn't necessarily because of any shortcomings of the individuals, but instead because of the ease of using credit cards without having to understand all of their subtleties.
Should you wish to learn more about how credit cards work and the terminology associated with them, read on? the information contained below doesn't cover the entire subject of credit cards and how they work, but it should provide you with some additional information and help you to understand a little bit more about these common cards that seem so essential and so mysterious at the same time.
Periodic Rate
The periodic rate of a credit card is the amount of interest that is charged for a single period of the year, usually the span of a single payment. The periodic...
Defining Common Credit Card Terms
Home loans > Defining Common Credit Card Terms
Defining Common Credit Card Terms electrolysis
London Zoo
London Zoo
by: S Wander
No matter what you hearts desire, there?s a good chance amongst its thirty six acres and over five thousand animals the London zoo will have it. The London zoo has an extensive collection of birds, small mammals, bears and hippos, and apes and monkeys. Everyone is bound to fall in love with at least one of the many animals they are likely to encounter while walking through the zoo?s extensive gardens, tunnels and bridges.
First opened...
gift basket Defining Common Credit Card Terms
Home loans > London Zoo
Defining Common Credit Card Terms
Defining Common Credit Card Terms
Digital Scouting Cameras: One Year of Testing
Digital Scouting Cameras: One Year of Testing
by: John Cook
It has been a year since I decided to test and review digital scouting cameras. Through doing these tests I?d hoped to give hunters some good information that would help them as they shopped for a digital scouting camera of their own. I think I have accomplished this and fortunately for me, I?ve had a lot of fun doing the tests.
I?m not sure exactly how many pictures I?ve taken but it is over...
Defining Common Credit Card Terms
Home loans > Digital Scouting Cameras: One Year of Testing
Gift Baskets - Create Simple Easy Gifts For the Person Who Has Everything!
Gift Baskets - Create Simple Easy Gifts For the Person Who Has Everything!
by: Donna Hamer
Have you ever thought about giving a personalized Gift Basket?
Is it just me or do you also get excited when you give a gift to your friends and family and you know they love it!
The downside you give a gift and you just know they hate it! Unfortunately you can?t always get it right because what seems right and the appropriate gift for you isn?t always right...
Defining Common Credit Card Terms
Home loans > Gift Baskets - Create Simple Easy Gifts For the Person Who Has Everything!
mortgage calculator Defining Common Credit Card Terms Home loans
Home loans
This page loaded in 0.04774 seconds.