Student Credit Card Glossary
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Student Credit Card Glossary
The life of a student is relentless. One day you are walking across a stage accepting your high school diploma, next you’re ironing out student aid details and trying to shop for student credit cards. Suddenly you are thrust into a world filled with mysterious credit card terms that make choosing that perfect student credit hard that much harder. Plain and simple, your high school curriculum most likely didn’t come with Credit Card 101 – so here is a brief list of terms you should know before diving into a student credit card application.
Annual Fee
A yearly fee charged by some student credit cards for use of the card.
Annual Percentage Rate (APR)
A periodic percentage rate that determines the finance charges you pay on your account.
Billing Cycle
The amount of time between your statements.
Card Member Agreement
A written document that provides details of your agreement with the lender.
Cash Advance
Using your credit card to get cash from a bank, ATM, or by writing a convenience check. Typically, the card issuer charges a cash advance fee for the transaction and begins charging interest immediately.
Credit Limit
The maximum amount that you can charge on your student credit card.
Credit Report
A report about your credit history that lenders consult to determine if they should lend to you.
Student Debit Card
A card issued by a bank that directly accesses available funds from a bank account, typically a savings or checking account.
Finance Charges
Certain charges that can be incurred when using a student credit card.
Interest Rate
The rate at which a student credit card company charges a customer for using the provided credit.
Prime Rate
An index rate that determines the interest rate a bank will charge customers. It is one way that a student credit card company determines APRs.
Student credit cards.com @ December 28, 2007