The industry of credit cards comes with a lot of jargon. You can not be expected to acknowledge all the technical phrases used and some of them could be very important. A brief description of the most common industry-related credit card terms and phrases.

Affinity card
A credit card that makes a donation to a charity of their choice based on how much you spend. In most cases it is best to avoid a charity that encourages you to subscribe to that card. It is likely that the credit card has a higher interest rate than the standard. Do not let guilt cloud your decision.

APR (Annual Percentage Rate)
Estimated for this year is the interest rate as a percentage of the balance of your credit card.

ATM (Automated Teller Machine)
ATMs. It is used to withdraw money directly from your credit card, although, in general, are also charged a fee.

Balance transfer
By transferring the debt to ‘balance’ of a credit card to another. The reason for this custom is to try to keep as much debt as possible on a low-interest card.

Credit Limit
Your credit limit is the maximum amount you can spend or withdraw the credit card. Spending beyond their credit limit will result in your card no longer be accepted, and will carry more than one payment threshold.

Fixed interest rate
A credit card fixed rate is one that indicates that you are given a fixed interest rate until the signal is maintained during the same period of the credit card. In practice, although interest rates may be changed for almost any reason.

Grace period
The grace period is the amount of time your spending with credit cards and when to begin paying interest on that spending. The best credit cards can have a grace period of up to two months, the cards can not be poorer in each.

Minimum payment
The minimum payment is the minimum amount you can pay the credit card company each month. Always try to pay more, but this is not necessary. Paying only the minimum amount that they are not paying back the borrowed money, but only the interest. Minimum payments are usually around 2% of your balance.

Sub-prime
A phrase used in the financial industry to describe customers who are a bad credit risk, but are seen as worth lending to poor credit risk financing allows the company to charge higher rates.

Teaser rate
A “special offer” low. You will see many offers with “LOW 4.9% APR” in the title followed by “for the first half, 21.9% later in the small print. Teaser offers can sometimes be useful, but if a tie as the period the offering.

Variable interest rate
An interest rate that is calculated by adding the current rate base. Taking this option will allow your credit card can be affected by changes in interest rates – a good idea if you think you can download, and if you’re on a bad road.