Getting Around With Credit Card terms |
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Card Holder Agreement
The agreement that gives all the descriptions about the credit card, the interest rate associated with the card, other fees, and every other detail related to the terms and conditions of the card.
Minimum Payment
Each month, the card holder receives a bill. The bill will specify a minimum payment that must be paid to the credit card company by or before the due date.
Annual Percentage Rate
Commonly known as APR The rate that credit card holders must pay as an interest in addition to the cost of purchases made with the credit card.
Average Daily Balance
The average daily balance on a credit card is the balance on a credit card divided by the number of days in that particular month. This number is then used to calculate the interest that will be charged to the credit card holder on each month's bill
Finance Charge
The finance charge is the amount of money that the card holder must pay in addition to the total due for purchases. The amount is calculated using the interest rate and the purchase balance on the card |