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.

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