A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Grace PeriodA short window after a due date during which you can pay without a penalty or, on some cards, avoid interest entirely.
- Statement BalanceThe total amount you owed at the end of a billing cycle, which you can pay in full to avoid interest charges.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- Finance ChargeThe total cost of borrowing on an account for a period, including interest and any applicable fees.
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Plain-English education — not personalized legal, tax, or investment advice.