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