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Credit card jargon for dummies
By Capitalist | February 6, 2009
Credit card companies often make credit cards a technical terrain, they do it so that the laymen get trapped and end up paying more owing to their failure to understand the terms itself. Let’s check out few important terms
Minimum amount due- It is five percent of your total due. This is the minimum bucket which you have to pay each month not to be called a defaulter.
Accrued interest- It’s the interest charged on your retail transactions and cash advances each month. Minimum amount chiefly reduces the interest each month.
Balance transfer- It’s the process of transferring your credit card debt to another card company which offers zero or minimal interest charges till a certain point in time. This period is usually 6 months.
Settlement- It’s the process of settling the entire credit card debt with a lump sum payment generally standing at30-50 percent of the entire amount.
Introductory offer- This is the time for which the balance transfer does not incur any interest.
Lien- It’s the money your savings account can hold back if you have a credit card default and you have savings account with the same bank.
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