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If you are current on your credit card payments th … moreIf you are current on your credit card payments then the amount due is equal to the minimum monthly payment, which is usually between 2 and 5 percent of your credit card balance.
If you are delinquent on your credit card then the amount due is the amount that you need to pay in order to get back into good standing. More specifically, the amount due in this scenario is the sum of all the consecutive minimum payments that you have missed plus the amount of the upcoming minimum payment. For example, if you just missed one minimum payment of $30 and the upcoming minimum payment is another $30 then the amount due will be $60.
If you are delinquent on your credit card then the amount due is the amount that you need to pay in order to get back into good standing. More specifically, the amount due in this scenario is the sum of all the consecutive minimum payments that you have missed plus the amount of the upcoming minimum payment. For example, if you just missed one minimum payment of $30 and the upcoming minimum payment is another $30 then the amount due will be $60.
The rate at which amounts owed to a bank on a cred … moreThe rate at which amounts owed to a bank on a credit card or loan account appreciate in value over time, increasing one's debt. In other words, this percentage of your average balance over the course of the month or year is tacked onto what you owe. When it comes to credit cards, the APR, or interest rate, is only relevant when you don't pay for the total amount of your purchases in a respective month.
For example, if your loan has a 10% APR, you will pay $10 annually for every hundred dollars of balance.
Usually, different types of credit card transactions have different APRs. One card might have a different APR for cash advances than for purchases or balance transfers. Also, some credit cards appeal to consumers with a low introductory APR; for example, 0% APR on balance transfers (or purchases) for six months.
For example, if your loan has a 10% APR, you will pay $10 annually for every hundred dollars of balance.
Usually, different types of credit card transactions have different APRs. One card might have a different APR for cash advances than for purchases or balance transfers. Also, some credit cards appeal to consumers with a low introductory APR; for example, 0% APR on balance transfers (or purchases) for six months.
Someone who is allowed to use credit resources.
Moving the balance from one of your credit cards t … moreMoving 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.
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.
A debt that cannot be collected, which is written … moreA 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.
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.
A financial institution that issues credit cards. … moreA financial institution that issues credit cards. Most of the time a credit card's issuer (e.g. Bank of America or Capital One) will be different from the network it is on (i.e. Visa, MasterCard, American Express, and Discover). The two exceptions are American Express and Discover, which are networks that began issuing their own cards directly.
The maximum amount you may charge on your credit c … moreThe maximum amount you may charge on your credit card. Some credit cards have different limits for purchases and cash advances.
Your credit line is closely tied to your credit standing and income. Issuers are more likely to trust you with a lot of spending power if you have a history of paying your financial obligations on time and are likely to have plenty of disposable income to make payments in the future.
Your credit line is closely tied to your credit standing and income. Issuers are more likely to trust you with a lot of spending power if you have a history of paying your financial obligations on time and are likely to have plenty of disposable income to make payments in the future.
Violation of your terms and conditions agreement; … moreViolation of your terms and conditions agreement; failure to pay your loan / credit card as agreed.
The time during which you can pay your monthly cre … moreThe time during which you can pay your monthly credit card bill before interest begins to accrue. The Grace Period generally lasts for 20-30 days after your bill is assessed. Not all credit cards offer a Grace Period, and none do when you are revolving a balance, in which case purchases begin to incur interest immediately.
Be wary of credit cards that do not have a grace period (i.e. 0 days) because even if you pay your bill in full every month, you will accrue interest charges every day that you have a balance on the card.
Only purchases have a grace period. Cash Advances and Balance Transfers do not have a grace period and interest charges therefore get assessed immediately.
Be wary of credit cards that do not have a grace period (i.e. 0 days) because even if you pay your bill in full every month, you will accrue interest charges every day that you have a balance on the card.
Only purchases have a grace period. Cash Advances and Balance Transfers do not have a grace period and interest charges therefore get assessed immediately.
Monies billed on the balance of a credit card or l … moreMonies billed on the balance of a credit card or loan, usually expressed as a percentage of the amount of money owed. The specific rate of interest is referred to as an Annual Percentage Rate (APR).
An interest rate based on the banking system's flu … moreAn interest rate based on the banking system's fluctuating rate, usually in accordance with the Prime Rate.
A credit card obtained by using a cash deposit or … moreA credit card obtained by using a cash deposit or other collateral to guarantee the credit card. The credit limit is based upon the amount of deposit or collateral.
The number of months that you can enjoy the "Intro … moreThe number of months that you can enjoy the "Introductory Rate" of your new credit card or loan, assuming you do not go into default.
If an "Introductory Period" is listed as a range (for example, 3 - 9 months), the final period will be determined by the credit card company after you submit your application. Their decision will be based on the strength of your credit history.
If an "Introductory Period" is listed as a range (for example, 3 - 9 months), the final period will be determined by the credit card company after you submit your application. Their decision will be based on the strength of your credit history.
The most common types of rewards (i.e. rewards cur … moreThe most common types of rewards (i.e. rewards currencies) are miles, points and cash back.
-- "Miles" will usually give you either:
Miles on the frequent flyer program of a particular airline (e.g. Delta Miles) OR
Miles on a credit card company's rewards program (e.g. Capital One Miles)
-- "Cash Back" will give you Cash (or a "Rebate") that is a percentage of the purchases you make (e.g. 1% Cash Back)
-- "Points" usually give you either:
"Hotel Points" on the rewards program of a particular hotel chain (e.g. Hilton points) OR
"Points" within a credit card company's rewards program (e.g. American Express Membership Rewards Points), which can usually be redeemed for merchandise, gift certificates, and travel.
-- "Miles" will usually give you either:
Miles on the frequent flyer program of a particular airline (e.g. Delta Miles) OR
Miles on a credit card company's rewards program (e.g. Capital One Miles)
-- "Cash Back" will give you Cash (or a "Rebate") that is a percentage of the purchases you make (e.g. 1% Cash Back)
-- "Points" usually give you either:
"Hotel Points" on the rewards program of a particular hotel chain (e.g. Hilton points) OR
"Points" within a credit card company's rewards program (e.g. American Express Membership Rewards Points), which can usually be redeemed for merchandise, gift certificates, and travel.
Some rewards credit cards give new cardholders ext … moreSome rewards credit cards give new cardholders extra points, miles, or cash back after they make their first purchase or spend above a certain amount within a specified period of time or for some other reason.
As the name suggests, this is a one-time fee that … moreAs the name suggests, this is a one-time fee that you will get assessed when you activate your new account.
This is a fee that you might get charged when you … moreThis is a fee that you might get charged when you have not used your account for any transactions over an extended period of time (e.g. 90 days).
Inactivity fees are usually charged on a monthly basis (in addition to a standard monthly fee, if applicable) until you make a transaction.
Inactivity fees are usually charged on a monthly basis (in addition to a standard monthly fee, if applicable) until you make a transaction.
Fancy term for saying that you are late on a loan … moreFancy term for saying that you are late on a loan or credit card payment.
Delinquency is measured in days, which correspond to the number of payments you have missed. That is why you'll sometimes hear "30 days delinquent" or "60 days delinquent", which would mean that you've missed one or two monthly payments, respectively, since your credit card or loan was in "good standing" (i.e. not late).
Delinquency is not reported to the major credit bureaus and you therefore do not incur credit score damage as a result of it until you have missed two consecutive payments (i.e. you're at least 60 days delinquency). In order to return your account to good standing, you must make payments for the number of months behind you are, plus the current month.
Delinquency is measured in days, which correspond to the number of payments you have missed. That is why you'll sometimes hear "30 days delinquent" or "60 days delinquent", which would mean that you've missed one or two monthly payments, respectively, since your credit card or loan was in "good standing" (i.e. not late).
Delinquency is not reported to the major credit bureaus and you therefore do not incur credit score damage as a result of it until you have missed two consecutive payments (i.e. you're at least 60 days delinquency). In order to return your account to good standing, you must make payments for the number of months behind you are, plus the current month.
Banks and other services that provide financial st … moreBanks and other services that provide financial statements have increasingly begun to charge a fee to provide paper statements to customers. The fee is typically $ 2per statement, and can be avoided when customers opt to receive statements electronically instead. Reducing the use of paper statements provides an environmental benefit and a substantial cost savings to the institutions that provide them.