Glossary
Terms that connect to real numbers.
Each glossary entry includes a definition, why it matters, a numerical example, related concepts, and a primary source.
- A
Annual Fee
A practical definition of a credit card annual fee and how to compare it with rewards and benefits that a cardholder realistically expects to use.
- A
Annual Percentage Rate (APR)
A practical definition of credit card APR, including why an annualized rate can still be used in daily or monthly interest calculations.
- A
Available Credit
A practical definition of available credit and why pending transactions, holds, payments, and issuer processing can change the displayed amount.
- B
Balance Transfer Fee
A practical definition of a balance transfer fee, how a percentage fee changes the new starting balance, and how it affects promotional-period savings.
- C
Cash Advance
A practical definition of a credit card cash advance and why its APR, fee, and grace-period treatment can differ from purchases.
- C
Credit Utilization
A practical definition of credit utilization, including overall and per-card calculations and the limits of using the ratio to predict outcomes.
- C
Current Balance
A practical definition of a credit card current balance and why posted transactions, payments, fees, and credits can make it differ from the statement balance.
- F
Foreign Transaction Fee
A practical definition of a foreign transaction fee and why transaction currency, merchant location, and card terms should be checked.
- G
Grace Period
A practical definition of a credit card purchase grace period and why eligibility, transaction type, and the cardholder agreement matter.
- M
Minimum Payment
A practical definition of a credit card minimum payment and why the required amount should not be confused with a fast or low-cost payoff plan.
- P
Payment Due Date
A practical definition of the date a credit card statement payment is due and how it differs from the statement closing date.
- P
Points Value
A practical definition of credit card points value and how a realistic redemption amount, required points, fees, and restrictions affect the estimate.
- S
Statement Balance
A practical definition of the balance shown when a credit card billing cycle closes and how it differs from later current activity.
- S
Statement Closing Date
A practical definition of the date a credit card billing cycle closes and a statement balance is created.