There’s a lot to learn about when it comes down to credit cards.  Whether you’re a seasoned veteran or a rookie, there are some main terms that you should know about before you go out and apply for a card.  I’m going to list a few terms and a simple definition for each one so that you can get a better understanding.

Your APR – Every time you look at an application, you’re going to see the term “APR”.  APR is your annual percentage rate and this is the rate you will pay on unpaid balances.  Always remember that if you pay your card off in full each month, you won’t have to pay interest at all!

Intro rates – Watch out for introductory rates because this can mislead people at times.  This is the rate you will receive for a certain period of time.  Let’s say the introductory rate is 0% for 6 months.  This would mean that you’re going to have 0% interest on your balances for the first 6 months.

Don’t let the name fool you – Most cards work the same but don’t feel special when you get a gold, platinum, double platinum, etc.  They generally all work the same.  In fact, it’s more a status thing than anything and you’ll find that these cards that have a higher value will have higher fees such as an annual fee, etc.

Rewards – If you’re looking for a card that has rewards, always make sure that you read the fine print on how the rewards work.  You may find that these rewards may expire or you need to spend so much to get a certain amount.  Rewards can be tricky when it comes to credit cards, so make sure you do your research.

Late payments – One of the main things you’ll hear when it comes to credit cards is that you should never pay late.  Why is this?  You’re going to have a late payment fee tacked onto your account and these fees are generally one of the highest fees you can encounter when it comes to your credit cards.

When it comes to knowing about credit cards, this is just a selection of the terms that you should know.  Since every credit card and genre is different, it’s important that you read the fine print before you apply.  As long as you do this, you’ll be fine when it comes to applying.


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