What You Must Know Before Making An Online Credit Card Application

Copyright 2006 Anthony Samuel When you fill out your online credit card application, you will surely run across a great many terms that you don't necessarily use in everyday life. To help make your life just a little bit simpler, we've compiled a list of definitions that will assist you in deciphering any online credit card application that you fill out. Account Number - A number given to you and only you by which you may make purchases. This number is on your credit card. Additional Cardholder - This is anyone who you add to your account, meaning that they, too, will hold a credit card with the same account number on it, but with their own name. They will be able to make purchases as freely as you do. Annual Fee - This is a payment made yearly that is simply for the privilege of having the card. This does not pay down your balance or finance charges. Annual Percentage Rate (APR)- This is a percentage rate charged each month on the balance on your card leftover after your payment. Balance Transfer - This is when you move the balance from one or more credit cards to another credit card. Billing Cycle - The time (usually a month) between two credit card bill statements. Card Issuer - The bank or company to whom you pay the balance on your account as well as the finance charges. Cardholder - You! Once you are given a credit card. Cash Advance - This is a loan, in cash, taken off the amount of credit available on your credit card. Credit Limit - This is the highest amount you can charge on your credit card without 'maxing it out.' Finance Charge - Fines and fees that are charged to your account based on how much is left over after your payment is made. Fixed Rate (or Fixed APR) -This is an APR that won't change. Grace Period - Generally between 10 and 28 days, this is the amount of time you have to pay off your purchases without any finance charges. Introductory Rate (or Intro APR) - This is a temporary (usually low) rate assigned to new credit cards for a brief time. Minimum Payment - This is the least amount that you can pay each month without incurring late fees. Variable Interest Rate - This is an APR that changes when interest rates change. Once you know these main terms it makes the process of making an online credit card application that much easier.