Journey Student Rewards Credit Card

Common Credit Card Terms

Credit limit - The maximum amount of available credit a cardholder may access. The Consumer Federation of America suggests people carry credit lines no greater than 20 percent of their gross income. For example, people with a gross income of $50,000 should not use credit lines of more than $10,000.

Annual Percentage Rate (APR) - The Annual Percentage Rate is a measure of the full cost of credit, expressed as a yearly rate. The APR takes into account the amount financed, the finance charge, and the amounts and timing of the payments. Under Federal Truth in Lending laws, all lenders are required to disclose the APRs associated with an offer. These disclosures are designed to help consumers understand what the cost of credit could be before they make any financial decisions.

Annual fee - A fee charged (on a yearly basis) for the customer's continued participation in an open-end credit plan.

Over-the-limit fee - A fee charged for exceeding the credit limit on the card if the customer chooses to accept this account option.

Late payment fee - A charge to a customer whose monthly payment has not been received as of the due date for payment as shown on the billing statement. Paying your credit card balance in full each month instead of carrying a balance is always a good idea.

Balance transfer - The process of moving an unpaid credit card debt from one issuer to another. Card issuers sometimes offer lower rates to encourage balance transfers.

Cash advance fee - A charge for using a credit card to obtain cash (generally at an ATM or bank window). This fee is usually either a percentage of the amount of the cash advance or a flat, per-transaction fee. Generally, cash advance fees do not have a grace period, which means that interest accrues from the moment the money is withdrawn.