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 LimitThe maximum amount a lender lets you borrow on a credit card or line of credit before charges get declined.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- Annual FeeA yearly charge some credit cards impose for the privilege of holding the card and its rewards or benefits.
- Late FeeA charge added when a payment arrives after its due date, which raises your costs and can hurt your credit.
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Plain-English education — not personalized legal, tax, or investment advice.