A |
| Adverse Credit |
This is the term used for people who have a poor credit history. This could include previous mortgage or loan arrears, CCJ's or bankruptcy. |
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| Affinity / Donation Cards |
These are issued by credit card companies and operate as standard credit cards but a percentage of purchases made via card usage is donated to a charitable beneficiary by the issuer. A donation may also made to the beneficiary on issue or first use of the card. |
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| APR |
This stands for Annual Percentage Rate. Any firm that lends money is required by law to quote the APR. Introductory rates do not include arrangement fees you may be charged and also don’t reflect any higher rate of interest that your borrowings will ultimately revert to. The APR takes into account the interest on a loan plus and additional charges making it easier for you to compare products. In general, the lower the APR the better the deal. |
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| Authorised User |
A person who is issued with a credit card and has full charging privileges on the main cardholder's account, but is not responsible for the repayment of the balance on the account. |
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| Authorisations |
Approved transactions for which funds have been set aside. Once a transaction is transmitted through the credit card system, the unposted amount will be replaced by an actual charge. If the charge is cancelled and not processed through the credit card system, the unposted transaction will be removed from your account approximately 14 days after it was authorised. |
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| Available Credit |
Your current credit limit less your current outstanding balance and any authorised but unposted transactions (including Temporary Authorisations). |
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B |
| Balance Transfer |
Balance transfer rates are applied to existing card debt that is being moved from one issuer to another or a consolidation of other debts. These rates tend to be lower than standard rates and apply to the debt transferred or consolidated for a specified term or until it is repaid in full. |
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C |
| Card issuer |
The bank, building society or store whose name is on your card |
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| Cash Advances |
The process for obtaining cash through your credit card. There are four ways of doing this with most credit cards: |
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| Chip and PIN |
Your unique four-figure number which you must use when you spend with your card. |
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| Credit Card Cheque |
Write a cheque drawn against your MasterCard®, Visa® or American Express® Credit Card account. Most Credit Card Cheques attract fees, be sure to check the fee and ensure that the cheque is against a promotional offer not the standard APR. |
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| ATM Cash Withdrawal |
Use your Credit Card and your 4-digit personal identification number (PIN) at hundreds of thousands of ATMs in most countries that display the MasterCard®, Visa® or American Express® logos. |
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| CCA |
This stands for the Consumer Credit Act. This legislation sets the rules for the way in which UK banks and lenders may lend money. |
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| Credit Card |
Credit cards are a form of borrowing used to purchase goods and services, to obtain cash advances and for consolidating debt. |
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| Credit limit |
The maximum amount you may owe through spending on the card. If you go over this limit, your card may be refused and you may also have to pay extra charges. |
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| Credit Rating |
This is a scoring system that lenders issue people with to determine how credit worthy they are. |
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D |
| Debit Card |
A debit card allows you to make purchases and withdraw cash by using funds from your bank account. These funds are automatically withdrawn from the connected account. They act as an alternative to cash and cheques. |
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| Direct Debit |
This allows an organisation to take money directly for a persons bank account. |
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E |
| Euro |
The basic monetary unit of most members of the European Union (introduced in 1999) |
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F |
| FSA |
This stands for Financial Services Authority who regulate the UK financial services industry. |
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I |
| Interest |
The amount you'll pay on any money you still owe after the interest-free period each month. |
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| Interest-free period |
The time between when you buy something on the card and the date when you must pay your monthly bill. This can be 50 days or more and is interest-free. So if you settle your bill in full every month, it's free borrowing. |
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J |
| Joint Account Holder |
A Joint Account Holder is jointly and severally liable for the account. Both the Joint and Main Account Holders have equal authority to maintain the account, e.g. change the address or request a credit limit increase. |
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M |
| Main Cardholder |
The person responsible for the repayment of the account balance. This person is listed first on the account. |
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| Minimum payment |
The amount you must pay each month to keep your account in order. |
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O |
| Outstanding balance |
Any money you owe on the card. |
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P |
| Payment Due Date |
The date on which your next payment is due. At least your minimum payment must be cleared onto your account before this date to remain in compliance with your Credit Card Agreement. Accounts with payments received after the due date may be subject to late fees. |
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Payment Protection
Insurance (PPI) |
An insurance policy that can pay an agreed amount if you're unable to earn because of illness or redundancy. This can therefore help to keep up your payments to the card. |
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| Promotional Rate |
A rate that is applied to your account until a given expiry date. Thereafter it will revert to the rate applicable to your account at that time. |
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S |
| Statement |
Your monthly credit card bill that shows what you've spent, what you owe, the minimum you must pay and the latest date you can pay it. |
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| Statement Date |
The last day of your monthly statement period. After the closing date, your statement will be generated, and future activity will appear on your next month's statement. |
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| Store Card |
Store cards are a form of credit card but are issued by or for a particular retailer and can only be used in that retailer's store's) / chain (unless it is endorsed by a credit card company). |
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T |
| Temporary Authorisation |
A temporary authorisation is a transaction that has been approved but has not yet been officially posted to your account. The value of the transaction has been deducted from your available credit limit and is included within your current balance. Normally, a temporary authorisation converts into a posted transaction. However, a temporary authorisation may expire if the merchant does not complete the transaction, this will then be removed from your balance and available credit limit.
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U |
| Unposted Transactions |
Transactions that have been approved, for which funds have been set aside. Once a transaction is transmitted through the credit card system, the unposted amount will be replaced by an actual charge. If the charge is cancelled and not processed through the credit card system, the unposted transaction will be removed from your account. |
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