The United States of America

Common Credit Terms.

Annual percentage rate (APR) is the annual rate of interest, which may be fixed or variable, charged on the outstanding balance on your debt. A different APR may be charged for different transactions. For example, for credit cards, the APR for cash advances is usually higher than the APR for purchases.
A credit limit is the maximum amount that you can borrow on a given account. Knowing your credit limit can help you avoid over-limit fees.
Over-limit fees are charged by the creditor if your revolving debt exceeds your credit limit. While credit card issuers may not allow purchases over the limit without express permission, late fees and missed payments can push you over the line.
Late fees are charged if your loan or credit card payment isn’t received by the due date.
A grace period is the amount of time before interest is assessed on new purchases—typically 21-30 days from the last day of the billing cycle. (There is usually no grace period for cash advances.)
Annual fees are charged for the privilege of using a credit card. It’s usually between $35 and $100. If you have good credit, you can likely switch to a card that doesn’t charge this fee.
Joint accounts are accounts you share with another person, usually a spouse, as opposed to individual accounts. Joint credit is granted based on both of your credit and financial information. You are both responsible for paying it and the account will be reflected on both of your credit reports.
An authorized user is a person who is approved by a creditor to use an account but is not responsible for paying it.

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