What are some common credit-related terms I should know?

APR stands for Annual Percentage Rate. APR is the cost of credit expressed as an annual percentage. To determine the monthly periodic rate, divide the APR by 12 months. To determine a daily periodic rate, divide the APR by 365 days (366 in leap years).

Prime Rate
A prime rate is the rate of interest a bank offers to its most creditworthy customers. The U.S. Prime Rate, as published daily by the Wall Street Journal, is based on a survey of the prime rates of the 10 largest banks in the United States and is often used as the index for a variable interest rate on a credit card.

Credit Limit
The credit limit, also known as credit line is simply the maximum amount of credit available to you for purchasing goods and services.
The Cash Advance credit limit is the amount from your total Credit Limit available for cash advances.

Interest Charge
An interest charge is the sum of interest on your credit card account. The interest charge is broken down by transaction type: purchases, cash advances and balance transfers (not offered on Final). If you pay less than the full balance, pay after the payment due date (or if your credit card does not have a interest free period) then you will pay interest on those purchases. Cash advances and balance transfers have no interest free period. This means they start accruing interest as soon as the transaction is made. This will result in interest due, even if your balance is paid in full.

Grace Period
A grace period is the time period between the end of a billing cycle and the date your payment is due, during which your outstanding purchases balance does not accrue interest. Note: there is no grace period for cash advances.

Cardholder Agreement
It states the terms and conditions of a credit card account and represents a binding agreement between you and Final. The Cardholder Agreement also presents the annual percentage rate, the monthly minimum payment formula, annual fees and dispute resolution processes.

File a dispute if there has been unauthorized use of your card, or you believe you have been charged for a product or service in error.

If you believe that a credit card transaction has been posted to your account in error, you may submit a credit card dispute within 60 days of the date that appears on the transaction statement or receipt. Before submitting a dispute, we recommend calling the merchant about the transaction in question, to see if you’re able to easily resolve the issue without involving other parties.

If that doesn’t work, we will research the transaction with the merchant and their bank and contact you with the results. No fees or interest will be incurred on the disputed charge during the dispute process. If the transaction was posted in error, we will correct your account. If the transaction was not posted in error, we will inform you of any interest or fees incurred during the dispute process.

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