Affinity Card - A card offered in conjunction with an organization and a credit card issuer. A certain percentage of the finance charges generated from cardholders are donated to the charity or organization featured on the card.

Air Miles - Miles that can be used for free travel or other discounts, and are earned each time you use certain cards.

Annual Fee - A fee charged by the card issuer for being a card holder. This type of fee is most commonly associated with frequent flyer credit cards or cards designed to help you rebuild your credit.

Annual Percentage Rate (APR) - The yearly percentage rate of the finance charge. The annual percentage rate will be a fixed or variable rate. See "Fixed Rate" or "Variable Rate" for descriptions.

Balance Transfer - The act of transferring the whole or partial balance of one credit card to another credit card. This is usually done if the balance is being transferred to a card with a lower annual percentage rate.

Balance Transfer Fee - A fee that may be charged to cardholders for transferring a balance from one card to another.

Billing Cycle - The days between the last statement and the current statement. Billing cycles generally range from 20 to 32 days.

Cash Advance - Obtaining cash from the card instead of using it to make a purchase. The Grace Period does not apply to cash advances.

Cash Advance Fee - A fee charged for using your card to obtain cash. The fee will be a percentage of the transaction or a flat fee. Higher interest rates generally apply to cash advances.

Charge Card - Different from a credit card as they generally have an annual fee and require the balance to be paid monthly.

Classic Card - The Visa version of a basic credit card. Generally has a lower credit limit. The Mastercard version is a Standard Card.

Fair Credit Billing Act - An Act passed by Congress in 1975 to help cardholders resolve billing problems with issuers. The Act gave cardholder certain rights when dealing with credit card issuers.

Finance Charge - The amount of interest charged to an account for the billing cycle.

Fixed Rate - A fixed annual percentage rate of the finance charge.

Gold Card - A credit card issued by issuers that may include added benefits not offered with a Classic or Standard credit card. The credit line is generally between $2,000 and $5,000.

Grace Period - The time allowed to pay your balance without being charged a finance charge. Usually 25 to 30 days.

Interest Rate - The yearly percentage rate of the finance charge. The interest rate will be a fixed or variable rate. See "Fixed Rate" or "Variable Rate" for descriptions. The Interest Rate is also known as the Annual Percentage Rate (APR).

Introductory Rate - A low interest rate offered for a limited time, usually for the first 3 to 6 months on being a cardholder.

Late Payment Fee - A fee charged to a cardholder's account once a payment is overdue.

Minimum Monthly Payment - The minimum amount of the balance a cardholder is required to pay to keep the account in good standing.

Over Credit Limit Fee - A fee charged if your balance exceeds your credit limit.

Pre-Approved - A person who has passed the preliminary screening for the credit card. The person will still need to have their credit checked.

Platinum Card - Usually offered to people with higher incomes and a good credit history. This card has a minimum credit limit of $5,000 and may include member benefits.

Prime Rate - The lending rate set by the Federal Reserve.

Rebate Card - Allows a cardholder to earn points or money to get cash, merchandise, or services for using the card.

Secured Card - A card that is secured by a savings account opened with the issuer. The card is designed for people who are looking to rebuild their credit, but are having trouble getting an unsecured card.

Titanium Card - Usually offered to people with higher incomes and a good credit history. This card has a credit limit above the Platinum level and may include member benefits.

Truth in Lending Act - A law requiring lenders to provide information giving borrowers the ability to compare one loan to another.

Unsecured Card - A credit card that is not secured by collateral. Unsecured cards are the majority of cards issued.

Variable Rate - A rate that can increase or decrease with the changes of the Prime Rate.