{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/essential-credit-card-terminology-key-terms-and-definitions-explained\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/essential-credit-card-terminology-key-terms-and-definitions-explained\/","headline":"Essential Credit Card Terminology: Key Terms and Definitions Explained","name":"Essential Credit Card Terminology: Key Terms and Definitions Explained","description":"Credit cards have become indispensable in our financial lives. They were the first financial tools people used concurrently with cash, while some users used credit cards only. But before you apply for a credit card, you should understand they are a responsibility.  You must also be aware of numerous factors, like the charges associated with...","datePublished":"2024-05-16","dateModified":"2024-05-16","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/#Person","name":"Vinayak","url":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Essential-Credit-Card-Terminology-Key-Terms-and-Definitions-Explained.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Essential-Credit-Card-Terminology-Key-Terms-and-Definitions-Explained.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/essential-credit-card-terminology-key-terms-and-definitions-explained\/","about":["Manage your Finance"],"wordCount":1048,"articleBody":"Credit cards have become indispensable in our financial lives. They were the first financial tools people used concurrently with cash, while some users used credit cards only.But before you apply for a credit card, you should understand they are a responsibility.  You must also be aware of numerous factors, like the charges associated with credit card usage. Whether you are a seasoned or new credit card user, the banking terminology around credit cards might be hard to understand. To make things easier, we have created a glossary regarding these terms. Knowing these terms will help you understand how to use your credit card better.Credit Card Terms You Should Know:Here are a few terms that you should be aware of when you are using a credit card:1.\u00a0\u00a0 Annual fee:Remember the term \u201cannual fees\u201d when you apply for a credit card. A credit card annual fee is a fixed sum you pay the credit card company annually. These charges often range between \u20b9500 and \u20b92,999, and you can enjoy benefits like cashback, airline points, and reward points in exchange.2.   Cash Advance:Cash Advance is a feature that allows you to withdraw cash using your credit card. You can withdraw money from selected ATMs across India or abroad. However, remember that cash advance is only a part of the card\u2019s fixed credit limit, and it has high charges associated with it; hence, you should not use it unless there is an emergency.Also Read: Six tips to improve your credit score with your IndusInd credit card3.   Credit Limit:The credit limit is the maximum amount you can spend using your credit card in a credit cycle. Your usage pattern, CIBIL score, repayment history, and many other factors determine your credit limit. Banks offer higher credit limits if you have a bright repayment history. The credit limit resets each time you clear your outstanding balance.4.   Annual Percentage Rate (APR):The annual percentage rate, or APR, is the interest rate on your outstanding credit card balance. Understanding APR is vital because it determines factors like the cost of borrowing, which affects your monthly interest payments if you carry a balance on your credit card.5.\u00a0\u00a0 Reward Points:Reward points is amongst the most attractive credit card benefits. Credit card purchases can earn you reward points across different categories, like electronics, groceries, dining, apparel, and travel. Understanding your credit card rewards program can help you leverage your credit card spending.Also Read: Comparing Credit Cards: Fees, Benefits and Other Charges6.   Overlimit charges:Overlimit is a facility in which the bank will not reject your transaction If it exceeds the credit limit assigned for a short period. However, the bank will charge a percentage-based over-limit fee on the excess credit you used. Hence, always clear the excess due if you ever swipe your card for an expense beyond the permissible limit.7.   Grace period:The grace period refers to the period from the day you receive the credit card bill till the payment due date. Pay off your balance before the due date to avoid interest charges.ConclusionApart from these, there are numerous other credit card terms as well. But these are the major ones, and if you are well-versed in them, you are all set to apply for a credit card online. Click here to choose from the many options of credit cards provided by IndusInd Bank and find the perfect one for you.Apply now!Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.Share This:"}