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.

Office of Comptroller of the Currency (OCC)
The Office of the Comptroller and the Currency (OCC) is a federal agency that is in charge of supervising of federal branches and agencies in the United States that issue credit cards.
Online Bill Presentment and Payment
By using online bill presentation and payment a customer is able to view and pay his or her bill online by transferring money from his/her checking account. There is no paper used when using online bill presentation and payment.
Open End
An open end loan is a loan where the total amount can be changed without re-negotiating the terms on the loan. The change can be good or bad depending on the risk there is in the eyes of the lender.
Opt Out
Opt out is an option that consumers have when the interest rates on the a debt owed increases or if there are changes in the terms predetermined. There must be forty five days advanced notice before changes are made so that the consumer is able to choose whether or not to opt out. A consumer must pay his or her debt within five years though if they use the opt out option.
When a consumer is over his/her limit it means that he/she has attempted to make a charge to an account that does not have sufficient funds. The card issuer might decline the transaction or their will be a fee for over-limit.
Over-Limit Fee
An over-limit fee is associated with a transaction that is made to an account with insufficient funds. The fee is usually very large but under the Credit CARD Act of 2009, an issuer must give the consumer the option of choosing between a declined purchase or a fee for allowing the transaction when setting up an account.
Overdraft Protection
When an individual attempts to withdraw more money than is available in a particular account (a checking account, savings account or any other line of credit), overdraft protection automatically transfers funds from one account into another to prevent overdraft fees. Overdraft protection, though, has fees and an individual can chose whether he or she wants this insurance.
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