Balance Transfer
This is when you move an outstanding balance from one card onto another. If a card has a Balance Transfer Intro Rate it relates to the interest that is applied to the transferred balance and the duration the intro rate is applied for. So for example a 0% balance transfer intro rate for 12 months will mean that no interest will be added to your account for the balance transferred for 12 months from the date the account is opened. To qualify for the introductory rate you will need to transfer your balance within a set period from the account opening, this time limit varies by issuer. When the intro rate ends then you will be charged interest at the cards annual percentage rate (APR).
To ensure you maintain any introductory rates applied to your account you must manage the account in line with the issuer’s terms and conditions. Specifically that means that you must always make at least the minimum payment, on time each month, and must remain within your set credit limit.
Balance Transfer Intro period
This is typically the period you will be offered 0% interest on any balance you move. The duration will vary by provider with the leading rates often reserved for those with excellent credit profiles
Balance Transfer Fee
Sometimes also called a Balance Transfer Handling Fee. This is a charge that is applied if you do move a balance onto your new card. It is usually calculated as a percentage of the balance you wish to transfer, typically it is around 3%. So for example transferring a £2,000 balance onto your new card with a balance transfer handling fee of 3% will incur a charge of £60, this is added to the balance on the card.
Purchases
This is where you pay for goods or services using your card– it doesn’t include things like cash withdrawals, cash advances or money transfers.
Purchase Introductory Rate
This relates to the interest that is applied to any purchases made and the duration that the introductory rate is applied for. So, for example, a 0% purchase introductory rate for 12 months will mean that no interest will be added to your account for any purchases made for 12 months from the date the account is opened. When the introductory rate ends then you will be charged interest at the card's annual percentage rate (APR).
To ensure you maintain any introductory rates applied to your account you must manage the account in line with the issuer’s terms and conditions. Specifically, that means that you must always make at least the minimum payment on time each month, and must remain within your set credit limit.
Available Credit
Your current credit limit minus your current outstanding balance.
Cash Advances
You obtain a cash advance by using your card to draw cash. Cash advances will invariably attract interest from the moment they are made, so there is no 'interest free' grace period.
Cash Advance Fee
You will also be charged for using your card to draw cash. The charge might be made as a flat-rate fee on each withdrawal or taken as a percentage of the amount of cash advanced.
Cash Advance Rate
This is the rate of interest attracted by your cash advance. Interest is invariably attracted from the moment it is made and the rate of interest for this facility could be higher than the card provider’s standard rate on regular purchases.
Credit Card Issuer
This is the company who processes payments made with the card. The three main issuers are Mastercard, VISA and American Express.
Credit Limit
This is the maximum amount that your credit card company will allow as credit i.e. a limit that cannot be exceeded as the balance owing on your credit card.
Joint Account Holder
Unlike an authorised user a Joint Account Holder has the same borrowing privileges as the main account holder, but they too will be responsible for the repayment of the account balance.
Withdrawal Limit
This relates to cash advances and is the maximum you can withdraw, either at a cash machine or over the counter at a bank, in any single day.