UK Credit Card Center - Personal Financial Solutions

-A-

Access Control

The process of ensuring that systems are only accessed by those authorized to do so, and only in a manner for which they have been authorized

Account Number

A unique number assigned by a financial institution to a customer. On a credit card, this number is embossed and encoded on the plastic card.

Additional Cards

Cards issued on an account not in the primary or secondary name. Additional cardholders are authorized to charge to the card and make payments. They can also check the balance and available credit on the account. Additional cardholders are not authorized to make changes to the account

Affinity Card

Affinity cards are credit cards that are linked to organizations like charities, political parties and sports clubs. They are a good way of raising money as the organization receives a donation from the card issuer for every card taken out, and a small percentage based on the amount of money you spend on the card each month

Annual Fee

A fee charged once a year for maintaining an account and for any special services.

Annual Percentage Rate (APR)

This is the amount of interest you will be expected to pay, should you borrow on your credit card. The APR is a figure designed to give consumers some idea of the cost of borrowing on the credit card. Other factors such as the date from which the interest is charged and the number of days you have to pay the interest also affect the cost of borrowing

Application

A document in which a prospective borrower discloses his or her financial situation to qualify for a loan or credit card.

Available Credit

The amount of unused credit available. Available credit is computed by subtracting the outstanding balance from your total credit line

Average daily balance

An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in a billing cycle.

Automatic Payment

A free service which automatically makes credit card payments by transferring funds from your checking or savings account

ATM

An acronym for Automated Teller Machine. It's a terminal activated by a debit or credit card that allows customers of a bank or other financial institution to conduct certain transactions such as deposits and withdrawals. An interconnection of these terminals allows customers to

Balance

An outstanding amount of money. A checking or savings account balance refers to the amount of money in a particular account. A credit card balance refers to the amount owed. See also Outstanding Balance.

Back to the Top

-B-

Balance Transfer

Allows you to use the available credit on one credit card and pay off another, ideally with a lower cost. Learn more about balance transfers..

Balance Transfer Fee

Fee charged customers for transferring an outstanding balance from one card to another. Can be a flat fee or percentage of the transfer

Balance Transfer Rate

Interest rate charged when the card holder transfers a credit card balance to another credit card. This rate may or may not be similar to the purchase rate.

Billing Cycle

Affinity cards are credit cards that are linked to organization like charities, political parties and sports clubs. They are a good way of raising money as the organization receives a donation from the card issuer for every card taken out, and a small percentage based on the amount of money you spend on the card each month

Billing Statement

The monthly bill sent by a credit card issuer to the customer. It gives a summary of activity on an account, including balance, purchases, payments, credits and finance charges.

Basis Point

One one-hundredth of a percentage point. The difference between 7.04 percent and 7.05 percent is one basis point.

Card Holder

An individual to whom a card is issued, or who is authorized to use an issued card

Card Holder Agreement

The written statement that gives the terms and conditions of a credit card account. The Card Holder Agreement usually includes the Annual Percentage Rate, the monthly minimum payment formula, annual fee, if applicable, and the cardholder's rights in billing disputes. Changes in the cardholder agreement may be made, with written advance notice, at any time by the issuer

Cash Issuer

Any association member financial institution, bank, credit union, or company that issues, or causes to be issued, plastic cards to cardholders

Cash Advance

Cash withdrawn from the available credit of your credit card account. There is no grace period for cash advances. Interest accrues daily and at a higher APR until the complete balance is paid in full. Transaction fees may apply

Cash Advance Check

A cash advance check works like a personal check except the amount is charged to your credit card account. This check can be written to your choice of recipients and for any amount up to your available credit limit. These types of checks are posted as cash advances and will incur a transaction finance charge

Cash Advance Transaction Finance Charge

A fee assessed on the date a new cash advance transaction is posted to an account

Cash Back

Cash back returns to you a percentage of the total amount spent on your credit card over a specific period of time, usually monthly or quarterly. This is particularly useful if you normally pay your credit card bills in full each month, as it means you get an effective discount on the products bought with your credit card

Credit

Credit is a promise to repay a debt for purchases you make. It allows you to buy something today and pay for it later. Building a good credit history can help you buy a house or even get a job

Credit Bureau

A credit-reporting agency that checks credit information and keeps files on people who apply for and use credit. The Credit Bureau produces a Credit Report, which is a record of a consumer's level of indebtedness and bill paying behavior. The agencies compile the report and release it to lenders and others as permitted by law

Credit Card Number

Unique number assigned to credit card

Credit Card Processor

A company that performs authorizations and settlement of credit card payments, usually handling several types of credit and payment cards (such as Visa, MasterCard, and American Express). If merchants wish to sell their products to cardholders, they retain the services of one or more processors who handle the credit cards that the merchant wishes to accept. When a merchant retains the services of a credit card processor, it is issued a merchant ID

Credit History

A partial profile of your financial life given within a particular time frame (usually measured in years). It shows the extent to which you pay your bills on time and how much you may owe particular parties. Credit card issuers use this information to decide whether to provide customers with credit cards. If you have been turned down in the past due to a bad credit history you can sometimes still obtain a credit card - see Adverse Credit Cards

Credit Limit

The maximum amount of charges a cardholder may apply to the account.

Credit Line

Also known as Credit Limit, this is the maximum amount you can carry as the balance on your credit card. If you exceed this amount, an Over-the-Credit-Limit-Fee may be imposed

Credit Score

Also known as a credit rating. Many lenders use this numeric calculation of your credit report to obtain a fast, objective measure of your credit risk, and consider your score when deciding whether or not to approve a loan. Also used as a judgment of someone's ability to repay debts, based on current and projected income and history of payment of past debts.

Back to the Top

-D-

Debit

Debt - money or goods you owe.

Debit Card

Debit cards are types of payment cards that offer a safe, convenient alternative to cash and checks. They allow you to access your bank accounts anywhere by using an ATM. The basic ATM card allows you to withdraw money directly from your checking or savings account. Access to the account is restricted by a Personal Identification Number (PIN). A debit card is similar to an ATM card, but it also can be used for purchases at merchants. The purchase amount is deducted directly from your bank account, so there are no interest charges. Fees for exceeding your balance can be charged

-E-

Debit

Debt - money or goods you owe.

Debit Card

-F-

Finance Charge

The price paid to a lender for the use of borrowed money. Interest is charged as a percentage of your outstanding balance (purchases and charges reduced by payments or credits posted). This percentage, or interest rate, can vary from card to card.

Fixed

not changing. Fixed interest rates never change during the time of the investment or loan

FSA [Financial Services Authority]

The Financial Services Authority (FSA) is an independent body with the power to regulate the financial services industry. The FSA has a wide range powers over the financial services industry to make rules, investigate and enforce these rules

Financial Ombudsman Service (FOS)

The Financial Ombudsman Service (FOS) is a government body that provides consumers with a free, independent service for resolving disputes with financial firms.

-G-

Grace Period

The period of time between when purchases are made and when interest will begin to be charged on them, this is often 20 - 25 days. If the balance is settled for these purchases inside of this period no interest will be charged on them.

-H-

Handling Fee

The fee charged, usually as a percentage of total for credit card checked, balance transfers and cash transactions.

-I-

Interest Rate

The rate at which a credit card company or other lender charges a customer for "borrowing" money. It is a percentage of the amount borrowed

Introductory Period

The period during which the Introductory Rate applies to balances outstanding on your account. .

Introductory Rate

A lower APR provided by a credit card company for a limited period of time.

-L-

Late Payment Fee

A fee charged when a payment has not been received by the specified due date.

-O-

Online Banking

Online systems enable you to access a host of banking services from a personal computer by connecting with the bank's computers over the Internet. Most of the top financial institutions in the UK offer online account access.

-M-

MasterCard

MasterCard, a product of MasterCard International, is distributed by issuing financial institutions around the world. Card holders borrow money against a credit line and pay it back with interest if the balance is carried over from month to month.

Minimum Payment

The smallest payment a customer can make each statement period to keep the account in good standing

-P-

p.a.

per annum: by the year; every year (usually with reference to a sum of money paid or received).

Penalty Rate

A higher APR the credit card company charges after the customer has made late payments, exceeded their credit limit, or otherwise did not abide by the Cardmember Agreement.

PIN (Personal Identification Number

A security code that the customer uses with debit and credit cards to authorize transactions such as cash advances. This PIN is different from the user ID and password customers use to access account information online

Pre-Approved

A potential customer who has passed an initial credit bureau evaluation

Purchase Rate

The Interest rate that you are charged for standard purchases made with the credit card

-R-

Rewards Program

A point accumulating program based on purchases or transactions made on your card. These points can be redeemed for the particular program you enrolled in (e.g. airline, hotels, etc.). Banks may charge annual fees to participate in a rewards program

-V-

Variable Rate

Any interest rate or dividend that changes on a periodic basis. Variable rates are often used for convertibles, mortgages, and certain other kinds of loans. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. also called adjustable rate.

VISA

VISA cards is a product of VISA USA and along with MasterCard is distributed by financial institutions around the world. A VISA cardholder borrows money against a credit line and repays the money with interest if the balance is carried over from month to month in a revolving line of credit. Nearly 600 million cards carry one of the VISA brands and more than 14 million locations accept VISA cards