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
- AutopaySetting up bills to be paid automatically from your account on their due dates so you avoid late fees and missed payments.
- Grace PeriodA short window after a due date during which you can pay without a penalty or, on some cards, avoid interest entirely.
- Billing CycleThe recurring stretch of time between one bill or statement and the next, which sets when payments come due.
- Minimum PaymentThe smallest amount you can pay on a credit card each month to stay current, though paying only this keeps you in debt longer.
- Credit ScoreA number that sums up how you've handled borrowing, shaping the rates you're offered.
- Recurring ExpensesCharges that repeat on a regular schedule, such as monthly subscriptions or annual memberships, whether you use them or not.
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Plain-English education — not personalized legal, tax, or investment advice.