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Financial Jargon
Annual fee refers to the flat yearly charge of membership. There are many companies with no annual fee charged on cards. Those with annual charges too are usually prepared to waive the fee aside for your business.
Finance charge is the amount you are charged for the facility of credit. In addition to interest charges there could be other charges like cash advance fee, when availing the cash advance facility.
Grace period can be a duration of about 25 days during which you can pay your bill without incurring finance charges. Most if not all credit cards offer grace period only for the full balance paid every month. Carrying a balance forward cancels the privilege. Grace period doesn’t apply to cash advances either.
Annual percentage rate is the yearly percentage rate of the finance charge. The rising interest rates affect other interest rates like prime rate or treasury bill rate which are called variable rate plans. Sometimes other interest rates are not affected in the case of fixed rate plans. Credit card info.com reports:
Before we get into shopping for a card, let's go over some important terms you'll encounter in credit-card brochures or discussions with potential lenders: Annual fee - A flat, yearly charge similar to a membership fee
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