Credit card glossary terms to know for first-time card users

New to credit? These credit card definitions will help

By Julie Sherrier

You've heard the horror stories about people carrying thousands of dollars in credit card debt, and you don't want to be one of them. Before you get your first credit card -- and certainly before you go putting purchases on plastic -- become familiar with these credit card terms. By taking a few minutes to educate yourself about how credit cards work, you can prevent mistakes before they happen -- and perhaps save yourself a lot of money and headaches down the road. (Back to glossary of common credit card terms.)

Glossary terms to know for first-time credit card users

Annual fee -- An annual fee charged by a credit card company for use of a credit card ... (more)

Annual percentage rate (APR) -- The annual percentage rate is the interest rate charged ... (more)

Card member agreement -- The card member agreement provides terms and conditions ... (more)

Charge-back -- A charge-back is a transaction returned through a credit card ... (more)

Credit line -- A credit line is the amount of money that can be charged ... (more)

Due date -- If your credit card payment does not arrive -- and get posted -- by the due date ... (more)

Finance charge -- A finance charge is the total cost of borrowing, including ... (more)

Fixed APR -- An annual percentage rate that does not change throughout the year ... (more)

Grace period -- The grace period is the time during which you are allowed to pay your bill ... (more)

Minimum finance charge -- You will be charged a minimum finance charge if ... (more )

Minimum payment  -- The minimum payment is the lowest amount of money ... (more)

Over-the-limit fee -- A fee charged when your balance goes over your credit limit ... (more)

Schumer Box -- The Schumer Box is a standardized disclosure "box" disclosing terms ... (more)

Secured credit cards -- Secured credit cards are those that require collateral ... (more)

Terms and conditions -- Terms and conditions is the common phrase for the document... (more)

Universal default -- Under universal default, cardholders who fail to make timely... (more)

Unsecured credit cards -- Unsecured credit cards are the most common type of card ... (more)

Variable interest rate -- With variable-rate cards, the APR changes when interest rates ... (more)

See related: Glossary of common credit card terms, Do your homework when shopping for your first credit card, 7 tips for handling your first credit card, Managing on-time credit card payments, Managing and getting rid of credit card debt

Updated: June 11, 2009

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