Every card application includes a summary of rates and fees. Here's what the key terms mean.
APR (Annual Percentage Rate)
The yearly interest rate on balances you carry. Most cards have a variable APR that moves with the prime rate. A card can have different APRs for purchases, balance transfers and cash advances.
Intro APR
A low or 0% rate for a set number of months. When it ends, the regular APR applies to any remaining balance.
Grace period
The time between the end of your billing cycle and the due date. Pay the full statement balance within it and you usually owe no interest on purchases.
Minimum payment
The least you can pay to stay current. Paying only the minimum keeps you in debt for years and costs much more in interest. Your statement shows how long it would take.
Balance transfer fee
A one-time fee, usually 3% to 5% of the amount, to move debt from another card.
Cash advance
Taking cash from your card. It usually has a fee, a higher APR, and no grace period. Interest starts right away.
Credit utilization
How much of your available credit you're using. Keeping it under about 30%, and lower is better, helps your credit score.
Annual fee
A yearly charge for the card. Some issuers waive it for active-duty military members.
Today's Credit Cards is an independent educational site. We are not a bank, lender or financial advisor, and nothing here is financial or legal advice. Card terms change often, so always confirm current rates, fees and benefits with the card issuer. Some links may earn us a commission; see our advertiser disclosure.