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| Annual Percentage Rate, or the interest rate that the user of a credit card will pay; the cost of borrowing money on an annual basis. The APR advertised by creditors varies and should be used to compare different credit card offers. |
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| Making purchases now and paying for them later; borrowing; money owed. |
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| A plastic card used to make purchases now and pay for them later. |
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| Any bank or business that extends credit to others; a lender. |
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| Anyone who owes money; a borrower. |
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| A fee for borrowing money, added to a monthly credit card bill. |
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| The fee, expressed as a percentage, a borrower owes for the use of a creditor's money. At an interest rate of 10%, a borrower would pay $110 for $100 borrowed. |
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| A temporary interest rate, advertised as a low APR to entice customers to apply for a credit card. After the introductory period, the interest rate will increase to the regular APR. |
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| Additional fees that can be added to a credit card bill if the card holder fails to make at least the minimum payment by the due date. |
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| The smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender. |
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| The amount of money borrowed. On a credit card bill, the principal is the purchase price of all items bought with the card. |
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| Fee charged by a credit card company for the use of their credit card. |
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| Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attached with the largest possible payments. |
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| A decline in the value of property; the opposite of appreciation. |
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| Expense that a taxpayer is allowed to deduct from taxable income; examples include money paid as home mortgage interest and charitable donations. |
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