| Understanding Credit Card Terms | | | | a consumer's credit report using a |
| By: James Johnson | | | | standardized formula. |
| Credit Card terms can be confusing, | | | | 4.)Deliquent - Accounts classified into |
| nonsensical, and an overall headache. In | | | | categories according to the time past |
| this article we will examine several | | | | due. Common classifications are 30, 60, |
| Credit Card terms and their meanings. | | | | 90 and 120 days past due. Special |
| These terms were requested by our | | | | classifications also include charge-off, |
| visitors, if you would like more | | | | repossession, transferred, etc. |
| information on any form of credit term, | | | | 5.)FICO Score - This is the actual |
| and what they mean to you, feel free to | | | | Credit Score number. It is a calculation |
| email us at our contact us link as the | | | | that helps to determine the associated |
| bottom of the page. | | | | risk that companies place on the credit |
| 1.)Annual Fees - A fee paid on a yearly | | | | applicant. While the actual equation is |
| basis in order to use a creditors credit | | | | not known outside of the three major |
| card. This fee is sometimes broken up | | | | credit bureaus, it is believe to be a |
| into 12 installments and paid each month | | | | complex equation involving many |
| over the period of the year. Annual Fees | | | | variables. |
| are often associated with Poor Credit | | | | 6.)Finance Charge - Amount of interest. |
| Credit Cards. | | | | Finance charges are usually included in |
| 2.)Co-Signer - This is a secondary | | | | the monthly payment total. |
| individual who signs for a line of | | | | 7.)Fixed Rate - An annual percentage |
| credit for another individual. While | | | | rate that does not change. |
| they may not be using the credit | | | | 8.) Line Of Credit - In open-end credit, |
| themselves, it is their responsibility | | | | the maximum amount a borrower can draw |
| to pay off any debts on the account that | | | | upon or the maximum that an account can |
| are not paid by the user. | | | | show as outstanding. |
| 3.)Credit Score - A credit score is a | | | | 9.)Revolving Account - Credit |
| number that indicates the measure of a | | | | automatically available up to a |
| consumer's credit risk at a particular | | | | predetermined maximum limit so long as a |
| point in time. Credit scores are | | | | customer makes regular payments. |
| calculated from information contained in | | | | |