All terms starting with "C":
Card Holder Agreement:
The terms and conditions associated with your credit card account. Different cards have different agreements. Also called "terms and conditions."
Cash Advance:
Withdrawing cash from your credit card account. The most common method for doing that is using your credit card in an Automatic Teller Machine (ATM).
Cash Advance Fee:
Every time you use your credit card to make a cash advance or ATM withdrawal you also get a 'Cash Advance Fee'.
A Cash Advance Fee of "3% (min $10)" means that your fee will be 3% of the amount of the cash advance, but never less than $10.
Cash Card:
A card pre-loaded with a certain amount of money.
Cash Back:
A rewards program where a cardholder receives cash back on a percentage of purchases made on the credit card.
Caveat Emptor:
Latin for "let the buyer beware."
Charge Card:
Many people use the terms credit card and charge card interchangeably, but there is a major difference.
Charge cards are credit cards that require the balance to be paid in full at the end of every month.
Because you cannot carry a balance, a charge card doesn't have an APR or Interest Rate.
Charge Off:
A debt that cannot be collected, which is written off as a loss against a lender's taxes. Debt must be charged off in three cases: if it is a certain number of days past due (120 days for a loan and 180 days for credit card debt), if the debt holder dies, or if the debt holder goes bankrupt.
A charged-off debt is not forgiven, though, and it stays on your credit report for 7 years. Lenders also generally sell charged-off debt to collection agencies who will attempt to recoup the debt through various means including lawsuit until its statute of limitations runs out, a time period that varies by state.
Closed Account Fee:
This is a one-time fee that you get charged when you cancel or close a financial product (like a prepaid card or a loan).
Closing Date:
The last day that transactions are posted to your account for that billing cycle.
Co-Branded Card:
A credit card offered by a company that isn't generally in the business of offering credit cards: non-profit organizations, universities, airlines, etc. These are also called "affinity cards." The company markets the card to its members, and the credit card company partner gives the marketer a small percentage or fee in return.
Collection Agency:
Credit card companies or banks might send your overdue bill(s) to a collection agency, a company that will attempt to obtain your payment.
Convenience Check:
When you open a new credit card account, the company may send you a blank convenience check or transfer check so you can transfer a balance from an old card to your new card. A credit card company might send you convenience checks at different times throughout the year for purchases, as well.
Copy Charge:
A fee that might be charged by your credit company in exchange for providing you with copies of documents that relate to your account.
Co-Sign:
When you co-sign a credit agreement for a relative or close friend, you are agreeing to pay the debt if the primary cardholder doesn't pay or otherwise defaults on the loan.
Co-Signer:
An adult (over 18 years old) who agrees to share credit responsibilities with someone.
Credit Bureau:
A credit bureau or credit reporting agency collects your credit history, and allows loan issuers or other companies and organizations to review your credit when applying for a credit card, loan, or even a job. Credit bureaus can only release your credit information with your permission.
Credit Reporting Agency:
A credit bureau or credit reporting agency collects your credit history, and allows loan issuers or other companies and organizations to review your credit when applying for a credit card, loan, or even a job. Credit bureaus can only release your credit information with your permission.
Credit Card:
A credit card allows you to keep a balance, rather than paying your debt in full each billing cycle, but then charges interest on the amount you owe.
Credit Card Company:
A financial institution that issues credit cards. Sometimes referred to as an "issuer bank" or just "issuer".
Credit Card Fees:
Fees charged to you by your credit card company. These can include transaction fees and application fees. Some credit card companies even charge a fee for closing your account.
Credit History:
The up-to-date accumulation of how you have used your credit. Your credit score is based on your credit history. If you use your credit responsibly, your credit history will be more positive than if you default on your loans or make your payments after the deadline.
Also referred to as "credit report", "credit record" or "credit file".
Credit Record:
The up-to-date accumulation of how you have used your credit. Your credit score is based on your credit history. If you use your credit responsibly, your credit history will be more positive than if you default on your loans or make your payments after the deadline.
Also referred to as "credit report", "credit history" or "credit file".
Credit File:
The up-to-date accumulation of how you have used your credit. Your credit score is based on your credit file. If you use your credit responsibly, your credit history will be more positive than if you default on your loans or make your payments after the deadline.
Also referred to as "credit report", "credit history" or "credit record".
Credit Limit:
The maximum amount you may charge on your credit card. Some credit cards have different limits for purchases and cash advances.
One of the main factors that determine how high is your credit limit is how good is your credit score.
Credit Line:
The maximum amount of credit that is available on a credit card or other line of credit account.
Credit Card Network:
The four major credit card networks are Visa, MasterCard, Discover, and American Express.
Credit Report:
A summary of your recent credit history plus additional personal facts, including your age, address, marital status, employment history and other details that will help potential creditors or employers gauge your creditworthiness.
A credit report includes a record of all credit cards you currently hold, have held, or applied for. It also includes the credit limit and your payment history.
Also called "credit record" or "credit file".
Credit Rating:
A numeric score of your overall credit performance as it pertains to the repayment history of your credit cards, loans, and bills. Also referred to as "credit score" or "FICO score".
Creditor:
Someone who loans or is owed money.
Credit Score:
A numeric score that helps creditors determine your creditworthiness. Also known as a Credit Rating or a FICO Score.
Credit Scoring System:
The method by which your credit score is determined, based on how likely you are to repay a debt.
Credit Standing:
A qualitative term that reflects where one's credit stands on a rating from "excellent" to "bad".
On the other hand, Credit Rating / Credit Score is a quantitative assessment of the strength of your credit: the higher your credit score, the higher your credit standing.
Card Holder:
A person authorized to use a credit card. The credit card has his or her name on it, and his/her signature on the back.
Credit Inquiry:
When a creditor asks to see your credit report from one of the three major credit bureaus. More specifically, there are two different types of credit inquiries: hard and soft. Hard credit inquiries are when creditors or lenders view your credit report(s) for the purpose of making a lending decision. This type of credit inquiry is listed on your credit files. Soft credit inquiries are when creditors, lenders, landlords or employers request your credit report(s) for pre-qualification or risk assessment purposes.
Credit Utilization Ratio:
The ratio of credit spent to total available credit.
Corporate Card:
A credit or charge card issued to members of a company, for business use. Corporate cards may have limits installed to prevent their use at certain establishments
Commercial Card:
A catch-all name for cards specifically issued for business use: including corporate cards, business credit cards, and business charge cards.
Carbon-Paper Packets:
Old-school method of credit card sales transactions, which involved putting carbon-paper packets through a sliding zip-zap machine. Nowadays, most transactions are handled by swiping your credit or debit card through an electronic card reader.
Card Member / Cardmember:
A person who is authorized to use a card. Also called Card Holder or Authorized User.
Card Present Transactions:
Transactions in which you present your card to a merchant. Card present transactions carry lower merchant fees than phone or online transactions because they are considered less of a fraud risk.
Card Reader:
An electronic device that reads the magnetic strip on credit, debit, or charge cards.
Cash Advance Rate:
The interest rate that will be assessed on your cash advances or ATM withdrawals.
Cash advances are not subject to any introductory rate and they have no grace period (i.e. the finance charges will start as soon as you make the cash advance).
Check Card:
As the name suggests, swiping a check card (or debit card) is the exact same thing as writing a check. When you buy something with a check card, the purchase price is automatically deducted from your checking account. You then receive your monthly purchase statement from your own bank, but you do not need to make any payments because the money has already been withdrawn from your checking account.
Carders:
People who trade, steal, or otherwise conspire to hijack, sell, or fraudulently use another person's credit card or debit card account information.
Carding Forums:
Web sites where carders exchange tips about illicit use or thievery of credit card or debit card account information.
Cash Advance Check:
A check where the monies are taken from a line of credit, rather than a checking or savings account. Cash advance checks are often offered by credit card companies. Often, cash advance check purchases accrue a cash advance APR and can also result in cash advance fees. Also called Convenience Check.
Cashing:
A type of carding fraud where a criminal withdraws cash from an identity theft victim's line of credit, credit card account, or bank account. Also called PIN Cashing.
Charge-Back:
A transaction returned by a credit card company to a consumer. Under some circumstances, a consumer may cause a charge-back by disputing a purchase made at a merchant. Also spelled Chargeback.
Chargeback:
A transaction returned by a credit card company to a consumer. Under some circumstances, a consumer may cause a chargeback by disputing a purchase made at a merchant. Also spelled charge-back.
Consumer:
Someone who purchases goods or services. Also known as You.
Charge-Back Period:
The specific length of time during which a credit card company can initiate a charge-back for a consumer against a merchant.
Clearing:
The third stage of credit card transactions: Once a merchant has batched the day's receipts, the credit card network takes (debits) the money from the credit card company associated with each transaction and gives (credits) it to the merchant. Also called Clearing and Settlement.
Credit Limit Increase Fee:
The credit-card company that assessed this fee explained it in the terms and conditions as follows: â??Each time your Account is eligible and approved for an unsecured credit limit increase, a Credit Limit Increase Fee of $25 is imposed. This fee is automatically assessed upon approval of your credit limit increaseâ??.
Cancellation Fee:
This is a one-time fee that you get charged when you cancel or close a financial product (like a prepaid card or a loan).
Charge Off Rate:
A formula where the amount of charge offs is divided by the average outstanding card balances owed to the credit card company. When a company has decided that collecting a debt is a lost cause, it charges it off its ledger. A rising rate of charge offs points to economic duress.
Cloning:
Cloned credit cards are counterfeit cards embossed with valid, but stolen, credit card numbers.
Closed Loop:
Closed loop cards are only valid in one particular store or group of stores. Conversely, open loop gift cards can be used for more general purposes.
COB Fraud:
"Change of Billing" address fraud, otherwise known as COB fraud, is a type of fraud where a criminal changes the billing address of a legitimate cardholder, so that items purchased with a stolen credit card / bank account are delivered to the thief's preferred address.
Consumer Credit File:
A store of an individual's debt-repayment records. Credit scores and standings are based upon consumer credit files. People with better credit standings are offered better rates for credit and loans.
Credit Bureau Risk Score:
A brief report of a consumer's credit history, as made available through credit bureaus to lenders and creditors. The risk score allows creditors to evaluate the risk involved with loaning credit or money to a debtor, based upon that person's history of debt repayment.
Credit Card Number:
The series of numbers embossed on a credit card. The first six digits identify the credit card company / issuer, such as American Express, Discover, Visa, or MasterCard. The remaining digits are a unique card holder identifier.
Credit Freeze:
Consumers can request a credit freeze from the credit bureaus, to prevent new accounts from being opened under the consumer's name. There is generally a fee associated with this service, unless identity theft is suspected or has been detected. Credit bureaus might also charge a fee for revoking (or "thawing") the credit freeze.
Credit Monitoring Service:
A service that monitors credit card accounts for activity that is out of the ordinary. The card holder is then alerted when such activity happens.
Credit Obligation:
A binding legal agreement between a debtor and creditor that the debtor will repay the creditor on a certain schedule or penalties will be exacted.
Currency Conversion Fee:
Former name of the fee now known as a Foreign Transaction Fee, which is the fee that you will get assessed on the purchases that you make while traveling outside the U.S. OR while purchasing items over the Internet from merchants that are located outside the U.S.
Cash Penalty APR:
This is the interest rate that applies to your balance for cash advances once your credit card is in default. Most credit cards apply the same Penalty APR to all portions of your balance, but some credit cards have a different Penalty APR for cash advances, which is usually higher than the Penalty APR applied to purchases and balance transfers. For more information, please see our explanation on the Penalty APR.
