Credit Card Glossary – Dictionary Definitions of Common Industry Terms

Credit Card Deals

	Interest Rate p.a.	Balance transfer Rate p.a.
ANZ Low Rate	13.14% p.a.	0% p.a. for 9 months
Virgin Australia Velocity Flyer Card - Balance Transfer Offer	20.99% p.a.	0% p.a. for 8 months
HSBC Credit Card	17.99% p.a.	0% p.a. for 6 months

If you are in search of credit card definitions, then look no further as these terms below explain all the credit card glossary commonly used by consumers.

• Available Credit – refers to the total amount of unused credit available to a card holder. The sum is reached by subtracting the outstanding balance from the total credit line.
• Annual Fee – an account maintenance fee charged once a year. Also includes special services.
• Average Daily Balance – balance is determined by adding up all balances during the month and then dividing the total sum by the number of days in a given billing cycle. Most credit card providers calculate the daily balance based on the annual rate. If the annual rate is 12 per cent, the monthly periodic rate would be 1 per cent. If the average daily balance on the card is $300, then it would yield a monthly charge of $3.00
• Annual Percentage Rate – a yearly interest fee inclusive of costs and fees to acquire a credit card. Interest rate is calculated based on the average compound rate.
• Balance Transfer – this is the process of moving a credit card debt to a different provider, ideally with better terms, e.g. lower interest rates.
• Billing Cycle – this refers to the number of days in your credit card billing period. Starting on the day after the previous close date through to the current closing date of the account.
• Cash Advance – a cash advance is cash withdrawn from the available credit of your card account. Interest will be charged daily and there is no grace period. The APR of the interest is also higher until the card balance is paid off in full.
• Cash Advance Cheque – works like a personal cheque but the money you advance is charged to your credit card account instead. You can write a check up to your available credit limit and issue it to anybody you like. Just like cash advances these cheques will incur a transaction finance charge.
• Cash Advance Transaction Finance Charge – a bank charge either made in a flat fee or as a percentage of the cash advance made.
• Credit – credit allows you to buy something with somebody else’s money. It is a promise made by you to repay your debt for purchases made on credit.
• Credit card grace period – this is the period between the date of your credit card billing statement and the date payment has to be made in full before interest begins to accrue on new purchases.
• Credit Bureau – a credit bureau is a credit reporting agency. It checks credit information of people who have obtained credit in any given way and keeps files of their financial state of affairs. When a lender considers giving you credit he can access your credit report with your consent.
• Credit Limit – this is the maximum amount of credit you can carry as a credit card balance. Also called a line of credit. If you go over your limit, a penalty fee applies.
• Credit Score - also known as a credit rating. Lenders use your score to determine whether you are worthy of receiving their credit and how much they can safely lend you.
• Finance Charge – the cost of using your credit card. It comprises of fees and other charges.
• Over-the-Credit-Limit Fee – a penalty fee charged to you for exceeding your credit limit.
• Secured Credit Card- this type of credit card is secured by the cardholder with a savings deposit. This ensures that  payment is made regardless if the cardholder defaults on payments. Usually this type of credit is used by people who have trouble dealing with credit cards or are new to the whole system.
• Unsecured Credit Card – this type of credit card is not secured with collateral. If you have a good credit history and strong finances you might be able to qualify for one of these unsecured credit cards.

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Credit card offers:

HSBC Credit Card	Bankwest Zero Platinum Credit Card	Virgin Flyer Credit Card	ANZ Low Rate
0% p.a. for 6 months on balance transfers & no annual fee	0% p.a. for 9 months on balance transfers & platinum benefits	0% p.a. for 8 months on balances transfers & reward points	0% p.a. for 9 months on balance transfers & low rate

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Credit Cards Comparison

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			Interest rate (p.a.)	Balance transfer rate (p.a.)	Annual fee	Cash advance rate (p.a.)
	ANZ Low Rate	A low rate on purchases, balance transfer and a low annual fee.	13.14% p.a.	0% p.a. for 9 months	$58 p.a.	21.49% p.a.
	HSBC Credit Card	No annual fee for the life of the credit card. Plus a low balance transfer offer.	17.99% p.a.	0% p.a. for 6 months	$0 p.a.	21.99% p.a.
	Bankwest Zero Platinum MasterCard	Exclusive Offer to Credit Card Finder. No annual fee credit card with platinum benefits.	17.99% p.a.	0% p.a. for 9 months	$0 p.a.	21.99% p.a.
	Commonwealth Bank Low Rate Credit Card	A low interest rate offer on purchases and balance transfers.	0% p.a. for 5 months (reverts to 12.99% p.a.)	5.99% p.a. for 5 months	$78 p.a. ($48 for qualifying customers)	21.24% p.a.
	ANZ Platinum Credit Card	No annual fee for the first year and a balance transfer offer.	19.39% p.a.	0% p.a. for 9 months	$0 p.a. annual fee for the first year ($87 p.a. thereafter)	20.99% p.a.

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.