《信用卡知识库》word版

1、.信用卡知识库Advances (aka Cash Advance)If you obtain cash from your credit card by using an ATM or walking into a bank, you are taking a cash advance. This is great for emergencies (such as a last-minute trip home), but there are usually transaction fees and higher APR's. Use this sparingly.Annual Me

2、mbership FeeA fee charged for maintaining your account throughout the year and for any special services. Annual Percentage Rate (APR)This is the annual interest rate you are assessed for borrowing money on a credit card. If you pay the entire purchase balance on your monthly bill on time each month,

3、 then you will typically pay nothing (a one-month interest-free loan). Otherwise this rate is applied to your outstanding balance each month.Available CreditThe more stuff you buy, the less available credit you have. The amount you have left (or available) is called Available Credit. If you oversee

4、your credit card properly, you should try to keep 15% of your Credit Limit available just in case of emergencies. (Example 15% of $700 would mean that $105 should be kept available for emergency situations.)Credit LimitThe absolute largest amount you can charge on your credit card. On your first car

5、d, the limit is usually pretty modest (example $700), so don't go crazy. If you try to exceed your limit, you may be penalized and/or assessed an over limit fee.FloatCharges you make are deducted from your Available Credit immediately but may not show up in your balance until the transaction rea

6、ches the bank. This can take a few days. The period between the transaction posting and the time it appears on your balance is called float. If your Available Credit is less than you expected think about recent purchases that may be floating such as rental car holds, or call for more information.Gra

7、ce PeriodIf you pay your bill on time, you don't get charged interest on your purchases (see APR). This interest-free period of time is called the grace period.Interest RateReflects what the bank charges a customer for borrowing money.Late ChargeIf you don't pay at least a minimum credit car

8、d payment by the payment due date, you may owe a late charge.Linked AccountYour credit account can be linked with any other cheque account so that funds can be transferred electronically between accounts.Monthly Finance ChargeYour average daily credit card balance multiplied by your Daily Finance Ch

9、arge rate (your APR divided by 365). Your Monthly Finance Charge is calculated on each statement closing date if the balance is not paid in full.Other FeesIf in the unlikely situation your payment is late or you exceed your credit limit, you may be assessed a charge. Usually Other Fees are totally u

10、nder your control. These fees are typically assessed when you are not meeting the contractual obligations on your account. Of course, if there is a bank error, call right away.Outstanding Balance (aka Your Balance)This is what you owe on your credit card. Each month, if you add your purchases, advan

11、ces, transaction fees, and other fees, this will be your Outstanding Balance. You should always know approximately what this is since this is what you will pay interest on if you don't pay in full.Over limit ChargeIf you exceed your credit limit, you generally receive an over limit charge.Paymen

12、t Due DateThe date by which you must pay your credit card bill. It's on your monthly statement. It's a good idea to send your payment in one week before the due date. Depending on getting in a last minute payment can cause you to pay unnecessary late fees. Automatic payments are a good optio

13、n to consider to avoid late fees.PIN - Personal Identification Number.The secret identification number you use to access your accounts at an ATM.Prime RateMost of the bank's credit cards use the "prime rate" as a base rate (e.g. "prime + 12%"). The prime rate used is taken fr

14、om the Money Rates column of the Wall Street Journal, and is the base loan rate posted by at least 75% of the nation's 30 largest banks as determined by the Journal. The prime rate is merely a base rate used to make loans to certain borrowers - it is not necessarily the lowest or best rate at wh

15、ich loans are made. (The precise manner in which the rate is determined is in our customer agreement and disclosure statement).PurchasesThese are credit card transactions through merchants (such as The Gap, AOL, Chevron, Pizza Hut, etc.). These will show on your monthly statement and are usually lum

16、ped together as Purchases. Purchases usually have a lower APR than Advances and there are no transaction fees.Secured CreditCredit that requires you to show assets as collateral for approval. Assets include savings, stocks, bonds or real estate.Total Finance ChargeThe sum of the Monthly Finance Char

17、ge, Minimum Finance Charge, and Transaction Finance Charge.Transaction Finance Charge (aka Transaction Fees)These are fees that card issuers assess for handling special transactions on your credit card account. These transactions cost more to process and/or are used by borrowers who may be having di

18、fficulties with their finances. Examples include advances and special purchases such as casino checks, lottery purchases, and Comchex.Unsecured CreditCredit issued without collateral. Customers qualify based on credit history and financial strength. Some Student Visa Card is an unsecured credit card

19、.Keeping Current        There's no better way to keep out of debt than staying current with your credit card payments. Below are some tips for managing your credit:Keep track of your spending* Save your credit card receipts and know what you owe. Wow, doesn'

20、;t that sound nice? You shouldn't be surprised when you get your monthly bill.Organize your receipts and bills* Grab a box or basket and make it a permanent home for your monthly bills and receipts. No, the round file doesn't count. Keeping organized will make all your bill paying simpler an

21、d easy to stay on top of.Set aside a Credit Day* Pick at least one day each month - perhaps the 1st - to add up all your credit card purchases, determine your Available Credit, and your payment amount. Hopefully donating blood or holding garage sales is NOT your primary cash source.Pay attention to

22、your balance* Keep your balance lower than your credit line (see Watching Your Credit Limit for more tips). Keep track of payment dates* Figure out the "Mail by" dates for bills so that they arrive via the mail on time (recommended that you mail one week earlier than the due date). At some

23、 bank you can make payments at an ATM, by telephone, or by using their Online Banking. No matter how you pay, the earlier the better. Just in case. How Much Can I Afford?        Obviously the answer is what you can pay. Sounds like something your Philosophy profess

24、or would say, eh? But how much is that?Managing credit can be a challenge. There is a strong temptation for first timers to buy more items than you can pay for, and to take advantage of cash advances.The general rule of thumb is as follows:* Less than 10% of your monthly income should go towards pay

25、ing off credit card bills. If you are paying more (or should be paying more), it's time to reconsider your monthly spending. Easier said than done perhaps, but here are some tips for staying within your budget:* Watch large impulse buys (these are especially hard to pay off).* Use cash advances

26、for emergencies only. This is the most costly way to use credit since you will pay higher interest rates and fees for cash than for purchases.* Pay more than your minimum payment each month to free up your spending power. If you do find that you cannot make payments, follow this approach:* Create a

27、payment plan that will get you back on track. Hide your credit card if you have to.* Contact creditors and discuss payment schedules that you can afford. Creditors will want to work with you to find a payment solution.* Use other available resources: Contact the bank for suggestions and tips. Credit Report                Imagine your credit report as a financial GPA. The more you pay your bills on time, the higher your credit rating. And that