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What You Must Know Before Making An Online Credit Card Application


When you fill out your online credit card application, you will surely run across a great many terms that you don't necessarily use in everyday life. To help make your life just a little bit simpler, we've compiled a list of definitions that will assist you in deciphering any online credit card application that you fill out.

Account Number - A number given to you and only you by which you may make purchases. This number is on your credit card.

Additional Cardholder – This is anyone who you add to your account, meaning that they, too, will hold a credit card with the same account number on it, but with their own name. They will be able to make purchases as freely as you do.

Annual Fee – This is a payment made yearly that is simply for the privilege of having the card. This does not pay down your balance or finance charges.

Annual Percentage Rate (APR)- This is a percentage rate charged each month on the balance on your card leftover after your payment.

Balance Transfer – This is when you move the balance from one or more credit cards to another credit card.

Billing Cycle – The time (usually a month) between two credit card bill statements.

Card Issuer – The bank or company to whom you pay the balance on your account as well as the finance charges.

Cardholder – You! Once you are given a credit card.

Cash Advance – This is a loan, in cash, taken off the amount of credit available on your credit card.

Credit Limit – This is the highest amount you can charge on your credit card without 'maxing it out.'

Finance Charge – Fines and fees that are charged to your account based on how much is left over after your payment is made.

Fixed Rate (or Fixed APR) –This is an APR that won't change.

Grace Period – Generally between 10 and 28 days, this is the amount of time you have to pay off your purchases without any finance charges.

Introductory Rate (or Intro APR) – This is a temporary (usually low) rate assigned to new credit cards for a brief time.

Minimum Payment – This is the least amount that you can pay each month without incurring late fees.

Variable Interest Rate – This is an APR that changes when interest rates change.

Once you know these main terms it makes the process of making an online credit card application that much easier.


This article was brought to you by a website where you can shop, compare and apply for credit cards online from leading credit card companies.


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