21st Century Student FinLit -Getting Personal SW

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WHAT DOES THAT MEAN?

TERM

DEFINITION

accrued interest balance transfer

interest that accumulates over time.

transfer of the debt on a credit card at one company to a credit card issued by another company. the interval of time between billings during which all transactions occurring in that time are posted to the account. a written summary of everything that happened on the credit card account in a billing cycle. a type of credit card incentive that reimburses the cardholder a small percentage of the amount of the purchases made with the credit card.

billing cycle

billing statement

cash back

charge card closing date credit card

a type of card the balance of which must be repaid in full each month.

the last day of a credit card billing cycle. PRODUCT PREVIEW a small plastic card allowing the cardholder to make purchases with money borrowed from the credit card provider. failure to meet the credit card’s minimum monthly payment for several months. the maximum amount the cardholder can borrow using a particular credit card. a measure of how much is owed on a credit card compared to the card’s limit. a late or overdue credit card payment. a set period of time during which charges made in that billing period may be paid without interest. a loan that is repaid in equal payments over a specified period of time; automobiles, furniture, and major appliances often are financed this way. 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. the lowest amount that can be paid on the credit card that month to avoid a delinquency and late payment fee. a loan that is made once, repaid over time and terminated; an installment loan.

credit card default

credit limit

credit utilization ratio

delinquency grace period

installment loan

line of credit

minimummonthly payment 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. 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.

rewards points

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Chapter 13 | Credit Card Craze 240

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