The period before interest begins to accrue on new purchases.
Identify Theft
A form of fraud in which consumers' financial information is illegally acquired for the purpose of making unauthorized purchases and transactions with their credit cards, or withdraw funds from their current or savings accounts.
Interest
The fee paid for the use of money. Interest may be paid, for example, by an individual to a financial institution for credit card use, or by a financial institution to an individual for holding a savings account. Interest is expressed in terms of annual percentage rate (APR).
Interest Computation Method
The way interest is calculated on a credit card balance. It can be charged by the day or month and includes interest on the unpaid balance.
Interest Rate
The percent, per unit of time, of the total sum borrowed that is charged by a bank or financial institution for the use of their money. Credit card interest may be computed by the year, by the month, or by the day.
Introductory Rates
Some credit cards may use the introductory rate as a special promotional offer. After a period of time, the rate usually returns to the standard rate.
Joint Account
A savings or current account established in the names of more than one person, for example, parent/child, wife/husband.
Liabilities
In financial terms, money owed to individuals, businesses or institutions.
Line of Credit
An authorized amount of credit given to an individual, business or institution.
Magnetic Stripe
The black strip on a credit card, debit or ATM card. It contains, in computer code, basic account information such as the holder's name and account number.
Minimum Payment
The minimum dollar amount that must be paid each month, usually 2 to 3 percent of the amount owed, based on average daily balance.
Money
Anything generally recognized as a medium of exchange.
Mortgage
A long-term loan obtained by individuals to buy a home that legally transfers ownership from the debtor to the creditor until the debt is paid.
Overdraft
A check written for more money than is currently in the account. If the financial institution refuses to cash the check, it is said to have "bounced".
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