It Is The Date By Which, The Credit Card Company Expects Your Payment

The monthly credit card bill might be Greek to someone who is not familiar with the credit card terminology used on it.

Amount due/ Due Amount. To make sure that you understand the documents properly seven important credit card terms are explained below. This is the minimum payment due per month and not the total amount due on the card. Due Date/ Date Due. APR( Annual Percentage Rate) The interest charged by credit card company on your Due amount. It is the date by which, the credit card company expects your payment.

Care should be taken to ensure that the payment reach the credit card company and you don' t fall into a last- minute- rush trap. It is essential that you abide by this date. If you don' t send the payment the credit card companies slap a late payment penalty on you and your credit rating might suffer. Grace period allows to purchase items or services with out paying the interest. Grace Period. It is in the interest of credit card holder to take the advantage of this grace period.

One essential requirement of grace period is that you should pay your credit card bills by the end of every month. However, he should take care that the borrowing should not exceed his repayment capacity or he will fall into a debt trap. If there is no grace period the interest is charged on your credit card purchases from day one. The amount you took as cash loan with your credit card. Cash Advance. You could have taken this amount from a Bank or credit cards ATM.

So, you need to keep a tab on taking cash advances with your credit card. Cash advance come with a cash advance fee and the rate of interest are higher than regular APR. Minimum Monthly Payment. Paying monthly minimum is the least efficient and most expensive way to repay your credit card debt. It is the minimum amount which you must pay to the credit card company to remain in their good books. The accrued debt could take years and years to repay if you make only the monthly minimum.

So, they encourage a credit card holder to pay the minimum balance and try to keep it a low amount by which, the credit card holder gets comfort. It is in the best interest of the credit card companies because it gets them the maximum revenue. However, the credit card holder should not fall into the trap and try to get rid of the credit card debt as soon as possible. The amount credit card company charges when they don' t receive your payments by the due date. Late payment penalty/ Late Fee. These seven terms form the basis of any credit card offer. The positives and negatives of these terms if understood carefully by a credit card borrower can help him save a lot on his credit card bills.

In one way or another you will find them listed in your credit card statement.