Credit-card terms,
in plain English.
Look up a term, then follow the explanation that helps with your decision.
Annual fee
A yearly charge for keeping a card account open. A card without an annual fee can still have interest charges and other fees.
Understand no-annual-fee cards →Annual percentage rate (APR)
The yearly rate used to express interest on a credit-card balance. Purchases, transfers, and cash advances may have different APRs. Check fees separately.
Read about rates and fees →Balance transfer
Moving debt from one credit-card account to another. Compare the transfer fee, any promotional rate, and the rate after that promotion ends.
Explore balance transfers →Billing cycle
The period covered by an account statement. Its closing date and your payment due date are different; use the dates on the actual statement.
Understand payment timing →Cash advance
Borrowing cash through a credit-card account. It can have its own fee and APR, and interest may start immediately. Read the cash-advance terms before using it.
Check the pricing table →Credit limit
The maximum borrowing amount available on an account. Your available credit changes as purchases, payments, fees, and other account activity are posted.
Learn about building credit →Foreign transaction fee
A charge based on an account’s rules for transactions involving another country or currency. Check when it applies and how it is calculated before spending.
Understand foreign transaction fees →Grace period
Time between a billing cycle ending and the payment deadline. If your account offers a purchase grace period and you meet its conditions, full payment by the due date can avoid purchase interest.
Read the grace-period explanation →Introductory APR
A temporary interest rate with specific conditions. It may apply to purchases, transfers, or both. Check the covered transactions, promotion length, fees, and ongoing rate.
Understand introductory APR offers →Minimum payment
The least amount your statement requires you to pay by its due date. Paying that amount may keep a payment current, but it does not usually clear the balance or avoid interest.
Think through a payoff plan →Secured credit card
A credit card backed by a security deposit. The deposit is separate from your monthly payments. Check the deposit-return rules, fees, and credit-reporting practices.
Explore secured cards →Statement balance
The balance shown when a billing statement closes. It can differ from the current balance, which reflects later activity. Use the statement’s due date and account terms when planning payment.
Understand statement costs →Sources and further reading
General education. An account’s current agreement controls its rates, fees, and payment rules.