Glossary of Credit Card Terms
Below is a list of credit card and credit industry terms which can assist with reading credit card statements as well as the fine print on credit related documents.
- Tabling occurs when credit card companies advertise to students on college campuses to encourage them to sign up credit cards by offering gifts. Usually there will be tables set up by the card issuer in locations that are highly populated by college students.
- Teaser Rate
- A teaser rate is an interest rate put on credit cards at the beginning period. It lasts at least six months and then will usually rise significantly. It is sometimes known as the go-to rate.
- Terms and Conditions
- The terms and conditions of an agreement between a credit card issuer and a credit card company describe the rules and regulations that the credit card issuer goes by. Once the card is used for the first time, the terms and conditions of the credit card become legally binding.
- Tiered Rewards
- Tiered rewards are rewards that give a certain percentage of money back. As the amount of spending on the account increases, the percentage back increases as well. When someone spends $1000 they might get .25% back, and for each additional amount of money a higher they will receive a higher increment of a percentage back.
- Total Finance Charge
- The total finance charge is the total amount of money that a consumer pays that he/she borrows with a credit card. It would be the amount borrowed plus interest.
- Truth in Lending Act
- The Truth in Lending act promotes having credit card owners becoming more informed when deciding which card to use. It gives consumers more accurate information so they are able to compare different credit cards before choosing. Credit card issuers are required to give all information about the terms and conditions of the credit card so that consumers are not misinformed.
- Truth in Savings Act
- The Truth in Savings Act is a law that requires any bank or other type of association to put forth information about charges on deposit accounts that have to do with interest rates or any other charge. It commonly is referred to as the FDIC Improvement Act or Regulation DD.
- Two-Cycle Billing
- Two-cycle billing a way to calculate how much interest must be paid on balances left on credit cards from month to month. It considers the current balance on the credit card and the average daily balance from the previous billing period. It was banned by the Credit CARD Act of 2009. It is also known as double-cycle billing.
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