Annual fees:

Most credit card issuers charge an annual fee for giving you credit, typically $15 to $55.

Annual percentage rate (APR):

APR is a measure of the cost of credit expressed as a yearly interest rate. Usually, the lower the APR, the better. Be sure to check the fine print to see if your offer has a time limit. Your APR could be much higher after the initial limited offer.

Budgeting:

Many people design and stick to a budget to get their debt under control. A budget plans out how much money you have versus how much money you spend. Sticking to a realistic budget allows you to pay off your debts while saving for the proverbial rainy day.

Charge card:

A charge card requires payment in full when you get your regular statement.

Credit:

Credit is much more than just a card used to buy things. It’s your financial trustworthiness. Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and creditors (those who lend money or services) will be more willing to work with you. Having good credit usually translates into lower payments and more ease in borrowing money. Bad credit, however, can be a big problem. It usually results from making payments late or borrowing too much money, and it means that you might have trouble getting a car loan, a credit card, a place to live and sometimes even a job.

Credit card:

Credit cards are used to buy things and pay for them over time. Buying with credit is a loan; you have to pay the money back. What’s more, if the credit card company sends you a check, it’s not a gift. It’s a loan you have to pay back. In addition to the cost of what you bought, you will owe a percentage of what you spent (interest) and sometimes an annual fee.

Credit counseling:

Universities, the military, credit unions and housing authorities often operate nonprofit financial counseling programs. Some charge a fee for their services. Creditors may be willing to accept reduced payments if you are working with a reputable program to create a debt repayment plan.

Credit report:

A credit report contains your credit payment history. These files or reports are maintained and sold by consumer reporting agencies (CRAs). A credit record is kept on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance or a job. Your credit record contains information about your income, debts and credit payment history. It also indicates whether you have been sued, arrested or have filed for bankruptcy.

Credit scoring:

Creditors use credit scoring to as a means to evaluate your credit record. This involves using your credit application and information such as your annual income, outstanding debt, bill-paying history, and the number and types of accounts you have as well as how long you’ve had them.

Debit card:

A debit card allows you to access the money in your checking or savings account electronically to make purchases in a similar manner to credit cards.

Grace period:

The time between the date of your credit card purchases and the date the company starts charging you interest.

Identity theft:

Identity theft involves another party or person using your personal information to create fraudulent accounts, to charge items to another person’s existing accounts, or even to get a job.

Transaction fees:

Common credit card fees include those for cash advances and going beyond your credit limit. Some credit cards charge a flat fee every month (whether you use your card or not).