All terms starting with "M":
Max Late Fee:
If you don't pay your credit card bill on time you get a late fee.
Usually, the late fees are tiered. For example,
-- $15 on balances up to $100
-- $29 on balances of $100 up to $250
-- $39 on balances of $250 and over
Given the tiered late fee structure of most credit cards, we recommend that you just focus on the 'Max Late Fee' (i.e. $39 on this example).
Max Overlimit Fee:
For consumer and student credit cards, you must first tell your credit card company that you want it to allow transactions that will take you over your credit limit. Otherwise, if a transaction would take you over your limit, it may be turned down. If you do not opt-in to over-the-limit transactions and your credit card company allows one to go through, it cannot charge you an over-the-limit fee.
For small business credit cards, if you spend over your credit limit, you will usually get an 'Overlimit Fee'. You do not have the option to opt-in like you do with general consumer credit cards.
Sometimes Overlimit Fees are tiered. When they are we recommend that you just focus on the 'Maximum Overlimit Fee'.
Maxed Out:
It means that your credit card balance is close to your credit line and therefore you can not charge much (or anything) on your credit card until you pay down your balance.
Merchant:
Someone who sells goods or services. Many merchants allow you to pay with credit cards, charge cards, or debit cards. Some also offer gift cards good for in-store or online purchases from their establishment.
Minimum Credit Required:
Rule of Thumb:
Minimum Payment:
| If your Credit Score (FICO Score) Is: | Then you have: |
|---|---|
| Above 720 | Excellent credit |
| 660 - 719 | Good credit |
| 620 - 659 | Fair credit |
| Below 620 | Bad credit |
| Less than 3 years of credit under your name (e.g. students, new to the country, divorcees) | Limited history / New to credit |
The amount you must pay your credit card company each billing cycle, to keep your account out of default.
Monthly Fee:
This fee will get assessed every month that you have this card.
It is also referred as a Monthly Membership Fee (MMF).
Monthly Periodic Rate:
The interest rate each month, expressed as 1/12th of the Annual Percentage Rate.
Monthly Statement:
The bill you receive each billing cycle. The monthly statement accounts for all transactions made during the billing cycle, and the back of the statement usually describes some of the basic terms of your credit card agreement or loan. Also detailed on the monthly statement are purchases, payment(s), credit limit, available credit and finance charges.
