Credit card glossary terms to know when you're in debt
Maxing out your available credit has serious repercussions. Not only will your credit score suffer, you may find yourself unable to make your minimum monthly payments. And once that happens, the domino effect of late fees, over-the-limit fees and default interest rates only compound the problem. Experts advise to always pay off your balance, don't spend more than you have and keep your credit balance below 50 percent of your available credit. Here are some common credit card terms for when you are in debt.
(Back to glossary of common credit card terms.)
Credit card terms to know when in debt
Annual percentage rate (APR) -- The annual percentage rate (APR) is the interest rate ... (more)
Available credit -- Available credit is the amount that is available to be charged to a credit ... (more)
Balance transfer -- A balance transfer occurs when the outstanding balance of one credit ... (more)
Collection -- In the credit world, collection is an effort by a collections department or ... (more)
Credit limit -- A credit limit is the amount of money that can be charged to a credit card ... (more)
Credit score -- A credit score is a three-digit number that summarizes how well a person ... (more)
Debt consolidation -- Debt consolidation is the combination of multiple loans with a new ... (more)
Default -- To default is to fail to make a payment on a debt by the due date ... (more)
Default APR -- If you are late in making payments, your standard APR may increase to ... (more)
Finance charge -- A finance charge is the total cost of borrowing, including interest ... (more)
Nondischargeable debt -- A nondischargeable debt is a debt that cannot be cleared away ... (more)
Overlimit -- Being overlimit, or over-the-limit, refers to a cardholder account that has ... (more)
Overlimit fee -- A fee charged when your balance goes over your credit limit ... (more)
Time-barred debt -- Time-barred debt is a term that describes a particular type of old ... (more)
Universal default -- Universal default is a common practice among credit card issuers that ... (more)
Wage garnishment -- Wage garnishment is a court-ordered technique of debt collection in ... (more)
Zombie debt -- Zombie debt is old credit card and other debts that are beyond the statute ... (more)
See related: Glossary of common credit card terms, 4 wrong ways to escape credit card debt, Major credit cards impact consumer debt, Managing and getting rid of credit card debt, Credit card debt consolidation, 5 steps to eliminate credit card debt, Become debt-free with credit card debt consolidation, Bankruptcy law updates close loopholes in repaying debt, 21 resolutions to beat credit woes and debt regret, Pay off credit card debt or declare bankruptcy?, 11 tips for dealing with debt collection, collectors
Published: March 11, 2009
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