| A | B |
|---|
| credit | the ability to make purchases with the promise that the money will be repaid later |
| credit card | a card issued by a bank, retail store or business that allows teh card holder to repeatedly purhcase products and services on credit |
| credit limit | the maximum amount of money that a caredit card issue will allow you to borrow or charge |
| charge | monies borrowed using a credit card |
| interest rate | the percentage you pay on the money you have borrowed |
| payment due date | the date by which the credit card company must recieve your payement to avoid late fees |
| outstanding balance | the amount stated on a credit card statement that you still need to repay |
| finance charge | interest payments you owe on a credit card balance |
| grace period | a period of time, generally 20-25 days, before a credit card company starts charging you interest on a purchase |
| late fee | a penalty you are charged for not making you minimum payment by the payment due date |
| annual fee | the amount of money the credit card issuer charges you for having the credit card account each year |
| cash advance | money you are allowed to obtin the form of cash through the use of an ATM or bank |
| daily finance charge | the interest rate you pay each day on the outstanding balance |
| annual percentage rate | the yearly interest rate you pay on the credit card balance |
| minimum payment | the least amount you can pay on the card and still keep your account in good standing |
| average daily balance | the averag amount you owe on the credit card during each day of the billing cycle |
