The following terms are commonly used in credit card company literature and on credit card company web sites.

Additional cardholder

When you have a credit card it is possible to add an additional card to the account for use by someone else. The main cardholder has responsibility for ensuring payments on the additional card are made. Purchases are shown on the credit card statement sent monthly.

American Express

Also known as AMEX, one of the main international credit card issuers. It issues it's own credit cards - unlike Visa and MasterCard and is responsible for it's own relationships with retailers.

Annual Fees

Some card issuers may charge you a yearly fee in addition to the interest that accumulates when you make purchases.

Annual Percentage Rate

The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements. The annual percent rate of interest on your credit card tells you how much interest you will pay on outstanding balances on your credit card.

Bad Credit

A term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments, exceeding card limits or declaring bankruptcy. "Bad Credit" can result in being denied credit.

Balance. The amount of money you owe the card issuer, and includes purchases, fees, interest and transaction charges.

Balance Transfer Rates

If you have an outstanding balance on other credit cards and you want to transfer this to your new credit card, some credit cards offer reduced rates on initial or all transfers.

Cardholder

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

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.

Cash Advance

You can use your card at a bank or cash machine to get a cash loan. The interest rate for a cash advance is typically higher than it is for purchases, and there is usually no grace period. There can also be a handling fee for withdrawing cash in addition to the interest charges, which can raise the cost significantly.

Credit Referencing

This is a record of your credit history which is usually used to help creditors judge your credit worthiness. It shows whether you pay your bills on time, how much debt you have, etc. Your report is compiled by credit referencing agencies and is released to lenders. It is important to check your credit reports regularly to catch possible human errors and prevent credit frauds.

Credit Limit

The maximum amount you may charge on a credit card. From time to time your card issuer may increase or decrease your credit limit.

Introductory APR

A temporary interest rate (expressed as a yearly rate) offered by card issuers to "introduce" you to their services. It will usually expire after a certain amount of time (usually 6 months).

Minimum Payment

The minimum amount you are required to pay the credit card issuer each month.