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

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