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
- Purchase APRThe interest rate applied to everyday purchases on a credit card when you carry a balance past the grace period.
- Penalty APRA higher interest rate a card issuer may apply after you miss payments, increasing the cost of any balance you carry.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- APR (Annual Percentage Rate)The yearly cost of borrowing money on a loan or credit card, stated as a percentage that includes interest and certain fees.
- Cash Advance FeeA charge added when you borrow cash against your credit card, on top of the higher interest that starts immediately.
More in Credit & Debt
Plain-English education — not personalized legal, tax, or investment advice.