A Credit Card Jargon Buster
Michael Knowles
Debt Consolidation And Credit Credit cards, as part of the financial industry, use a massive array of jargon. You can't be expected to recognise all these technical terms, and some of them are quite important - so here's a quick guide, in alphabetical order.
Impartial guide about credit card types available in the UK. Ensure you choose the right credit card type for you and save money with uSwitch.com
Check Credit Rating Affinity card: This is a credit card that gives a certain amount to a charity of your choice, depending on how much you spend. It is generally best to avoid any charity that wants you to sign up for such a card - don't let guilt lead you to a high interest rate.
Unfortunately, credit card companies offering lower typical APRs (Annual Percentage Rate) tend to have stricter credit check systems and are more likely to reject your application. With the uSwitch.com credit card comparison service you can compare the credit cards available that will accept applications from people with poor credit check results (or credit ratings). This will save you the hassle of having your applications rejected, which can also show up as a bad sign in future credit checks.
Improve Credit Rating APR: Annual Percentage Rate. This is your overall interest rate, calculated yearly, and given as a percentage of your balance.
Whether you need to transfer a credit card balance or find a new credit card, our simple search will quickly help you find the best credit card from some 120 UK providers. Compare standard rate credit cards and credit cards with introductory rates and rewards.
Credit Online Rating Report ATM: Automated Teller Machine. A cash machine. It will give you money when you put your credit card in, but will probably charge an extra fee.
Barclays Bank credit cards now fall under the umbrella of 'base rate tracker' credit cards, which means their typical APRs vary with the base interest rate as set by the Bank of England. If interest rates go up, your card's interest rate will too. If rates go down, however, so will the cost of using your Barclays Bank card.
Credit Score Rating Scale Balance transfer: This is when you transfer your debt ('balance') from one credit card to another. The usual reason for this is to try and keep as much debt as possible on a lower-interest card.
Compare UK credit cards and apply online for the best credit card. Comparison of balance transfers, introductory rates, bad credit rating, instant decision, low interest rate, cash back, gold and platinum cards.
Bad Card Credit Credit People Credit limit: Your credit limit is the maximum amount you can spend or withdraw from your card. Going over your credit limit will result in your card no longer being accepted, and you being charged an over-limit fee.
Free Credit Rating Report Fixed rate: A fixed rate card is one where you are given a rate when you sign up for the card and that rate, at least in theory, stays the same for the whole time you have the card. In practice, though, interest rates can be changed for almost any reason.
Credit Rating Scale Grace period: Your grace period is the amount of time between when you spend money and when you start paying interest on it. Good cards can have a grace period of up to two months - bad ones might not have one at all.
Bad Credit Rating Minimum payment: A minimum payment is the absolute lowest amount you can pay back to the credit card company each month - you should pay more, but you don't have to. Minimum payments are usually around 2% of your balance.
Credit Rating Agency Sub-prime: This is a phrase used in the industry to describe customers who are a bad credit risk, but are seen as worth lending to anyway. If you are identified as sub-prime, you'll start getting offers for loans secured on your property - they know that if you can't pay, they'll get their money anyway.
Credit Rating Canada Teaser rate: A 'special offer' low rate, usually written in enormous letters. You will see many offers with "LOW 4.9% APR" in inch-high letters, followed by "for first six months, 21.9% thereafter" in microscopic ones. Teaser offers can sometimes be worth taking, but not if they tie you in for longer than the period of the offer.
Bad Credit Mortgage Rating Variable rate: This is an interest rate that is worked out by adding a certain amount to the current base rate. Taking this option will allow your credit card to be affected by changes in national interest rates - a good idea if you think they might go down, and a bad one if they're on the way up.
Good Credit Rating Copyright 2005 Michael Knowles
www.freedomisyoursonline.com
You may use this article on your website if you keep my copyright on it or you may link directly to my free blog reports page at http://www.freedomisyoursonline.com/wordpress
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Credit Mortgage Rating Poor I run several websites with lots more in development. My favorite subjects are computers and internet marketing. I also have my own article directory website at http://www.postyourarticles.com. Come by and post your articles at my site for FREE
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