All terms starting with "B": Bad Credit:
A credit score below 620. If you aren't sure of your credit score, you can use a Free Credit Check in order to get an approximation or simply consider whether ANY of these statements are true:
  • I'm currently late on a payment (i.e. loan, medical bill or credit card)
  • I've either defaulted on a loan or credit card or declared bankruptcy within the last three years
  • I've missed a credit card, medical bill, or loan payment by more than 90 days during the last 12 months
Balance:
The amount owed for account activity: purchases, balance transfers, cash advances, fees, interest, and transaction charges.
Balance Transfer:
Moving the balance from one of your credit cards to a different credit card. On all credit cards you can always transfer a balance away from them (i.e. to another credit card). However, not all credit cards allow you to transfer a balance into them.
Balance Transfer Fee:
A fee that might be charged when you transfer a credit card balance from 'Credit Card A' to 'Credit Card B'. This fee is charged by the credit card that receives your transferred balance (i.e. 'Credit Card B', in this example). There is never a fee charged by 'Credit Card A'.
Balance-to-Limit Ratio:
The ratio of credit spent to total available credit. If you have a little debt and a lot of available credit, your balance-to-ratio limit is low, which is good for your credit score. For example, if you have a credit card with a $1,000 credit limit and your balance on that credit card at the end of your billing period is $500 then your balance-to-limit ratio will be 50%.
Bank Card / Bankcard:
Often a bank account will be tied to a bank card, which is a debit or credit card that allows authorized users to make transactions at merchants and/or Automatic Teller Machines (ATMs).
Bank Identification Number (BIN):
Former term for "Issuer Identification Number."
Batching:
The merchant's review of a day's credit card sales. First the merchant makes sure that all transactions were authorized and that the card holder's signature is attached. Then the merchant transmits the day's sales all at once, in a "batch", to the credit card company in order to get paid for the goods and services sold.
Bill:
The bill you receive each billing cycle, also called a "monthly statement". The monthly statement accounts for all transactions made during the billing cycle, and the backside of the statement usually describes some of the basic terms of your credit card agreement. Also detailed on the monthly statement are purchases, payment(s), credit limit, available credit and finance charges.
Bill Presentment:
A method of receiving, viewing, and paying your bill online. Money is transferred from the account you designate to your credit-card account.
Billing Cycle:
The number of days between statement dates: usually 28 to 31 days, or about a month.
Billing Statement:
A monthly statement of all account transactions. Also called a bill or a monthly statement
Block:
A block is a reserve placed on a consumer's credit limit or debit balance to cover the final, as-yet-unknown amount of a transaction. Blocks are likely to occur when you use your card at gas stations, restaurants, hotels, or other locations where the total transaction amount can vary due to tips, tabs, and the size of your gas tank. Blocks may be lifted within minutes, hours, or days.
Breakage:
Breakage refers to gift cards that are purchased but never used. It is the reason why some gift cards can be purchased for less than their value -- a retailer knows that a certain number of the gift cards will never be used.
Business Credit Card:
A credit card used by business owners or executives to keep business expenses separate from personal charges. Some business credit cards offer special business rewards, like discounts at vendors or travel benefits.