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
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- Revolving CreditA type of borrowing where you can repeatedly use and repay up to a limit, like a credit card, without a fixed payoff date.
- Finance ChargeThe total cost of borrowing on an account for a period, including interest and any applicable fees.
- Purchase APRThe interest rate applied to everyday purchases on a credit card when you carry a balance past the grace period.
- Late PaymentA payment made after its due date, which can trigger fees, higher rates, and damage to your credit history.
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Plain-English education — not personalized legal, tax, or investment advice.