Credit card terms – The world of credit cards and credit card debt can be confusing at best.
There are plenty of different acronyms and credit card account terms that are unfamiliar to anyone that is removed from the world of finances.
When someone talks about a Zombie Debt or Wage Garnishment, most fail to understand what they are referring to.
What about the rules governing the use of someone else’s credit card united terms conditions?
What about revolving balance, do you know the terms of credit for sears revolving credit card (ifyou use one)?
While there are plenty of different credit card terms and conditions to understand about the credit industry, there are some that stand out among the rest. Take the time to attempt to learn as much as possible about the following credit card terms and conditions, as they are the most important to watch out for and understand.
- Wage Garnishment:
those who default on loans or debts will often have to deal with wage garnishment. This means that a specific amount of money is taken from your paycheck before you actually see the money. This helps to ensure that the debts are paid.
APR stands for Annual Percentage Rate: This is the yearly interest rate that is placed on your credit card debt.
- Available credit:
Available credit simply refers to the amount of credit that you have left to use. If you have a $1500 credit limit and have used $500 of your credit, your available credit is $1000.
- Balance transfer:
A balance transfer is a movement of your debt from one company to another. One credit card company buys off the debt on your other credit card, then charging you for the amount of money that they paid off. Also, watch out for those introductory credit card balance transfers with no interest with terms one year or longer. Their APR gets really high at the end of the introductory period.
If you fail to pay off a debt as asked, the company will send the debt to a collections agency. If you fail to pay your minimum credit score, you may be sent to a collections agency.
- Credit Limit:
This is the amount of money that you are allowed to use on your credit card. Going over this limit is a serious penalty, resulting in multiple large fees.
- Credit Score:
Tracks your credit moves, giving financial institutions a way to gauge the risk of providing you with credit.
- Debt Consolidation:
The process of putting all of your different debts together into one large lump sum loan.
- Over limit fee:
those who spend more than their credit allows are given a an over-limit fee.
- Universal default:
If you default on one of your credit cards, each credit card/loan that you have is allowed to raise your interest rate. It is considered a “universal default” that affects all of your credit.
All of these credit card terms relate to things that may happen to you and your credit.
The more you know about these issues, the more that you can do to avoid them.
Take these credit card terms and conditions to heart and truly think about how they could affect your credit.
While some are positive, others can be negative. You simply need ot think of these credit card terms in the context of your own credit to fully understand what they mean.
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