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Account Agreement
The account terms that apply to your credit card account. The agreement states your annual percentage rates, account fees, payment calculation method, and rights in billing disputes, as well as other important account information.
Accrue
To increase or accumulate over time.
Annual Fee
The yearly fee that may be charged to maintain the credit card account.
Annual Percentage Rate (APR)
A measure of the cost of credit, expressed as a yearly rate.
Annual Percentage Yield (APY)
The amount paid to customers as interest on their savings deposit. This is a term associated with savings accounts.
Automated Teller Machines (ATMs)
Self-service machines that dispense cash.
Available Credit
The amount of unused credit on an account. The available credit can be calculated using this formula:
Credit Line
- Account Balance
- Fees and Finance Charges
- Pending Authorizations (or holds)
= Available Credit
Average Daily Balance
The average daily balance is calculated by adding each day's balance together and then dividing the sum by the number of days within the cycle for the current month.
Balance
The amount of the credit line that has been used for purchases, cash advances, fees, finance charges, and other transactions.
Balance Transfer
The movement of the balance of one credit card account to another credit card account.
Billing Cycle
The period of time between billing statements during which your charges and credits accumulate. A billing cycle is typically 30 days, but because of weekends, holidays, and the variance in the number of days in a month, a billing cycle may be as short as 27 days and as long as 33 days.
Browser
Short for Web browser, a software application used to locate and display Web pages. Two popular browsers are Netscape Navigator and Microsoft Internet Explorer.
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Business Days
A day that a business is open to conduct business. Monday through Friday, except bank holidays, are generally considered business days. This is different from a calendar day.
Calendar Days
The seven days of the calendar week. Every day is considered a calendar day. This is different from a business day.
Cash Advance
Using a credit card to withdraw cash from an ATM or bank, or other methods described in the Account Agreement. Cash advances are subtracted from the available credit and become part of the cash advance balance. (Please note that there may be restrictions on the amount of cash you can take.)
Cash Advance Fee
A charge assessed for taking a cash advance.
Convenience Access Checks
Checks that can be used to access up to the available cash advance limit on the account. They can be deposited into personal bank accounts or used where personal checks are accepted. They usually post as a cash advance to the account. Convenience checks cannot be used to make a payment to your Providian account.
Credit Bureau
An institution which collects and reports facts about your financial transactions and credit history. These facts are then compiled into a "credit report," which can be accessed by potential lenders, employers, etc. The three major credit reporting agencies are Equifax, Experian, and TransUnion.
Credit Line (or Credit Limit)
The amount of credit being extended to you by a bank (in this case, via a credit card) to make purchases, cash advances, and other transactions. There may be only a portion of your line available for cash advances.
Credit Line Increase
An increase in the amount of the credit line.
Credit Rating (or Credit Score)
A calculation based on one's personal credit history, provided by credit bureaus to lenders, that predicts future credit performance.
Credit Report
A record of all of the information that a credit bureau has collected about the way you have managed your credit accounts over time. It includes your lenders, your current account records, and the timeliness of your payments. The information on your credit report may be used when you obtain credit cards, mortgages, other loans, car or apartment leases, and possibly employment.
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Current Balance
The total amount of credit you have spent on purchases and cash advances, plus finance charges and fees.
Cycle Date
The date on which a billing period ends and a new billing period begins. This is the date your statement is generated.
Delinquent
Overdue in payment.
Dispute
A process you can request to review unauthorized charges for removal from your account.
Due Date
The date a payment must be received before the account is considered late and a late fee is charged.
Equifax
One of the three major credit bureaus.
Experian (formally TRW)
One of the three major credit bureaus.
Expiration Date
The last day of the designated month/year the credit card is valid. (This date is imprinted on the credit card.)
Fee
Specific charge related to your account. Fees can be charged for services rendered or if you do not meet the terms of your Account Agreement.
Finance Charge
Charges accrued on an account as a result of the APR. Certain fees are also finance charges, such as the cash advance fee.
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Fraudulent Activity
Transactions on your account not made by you or someone you permit to use your card.
Grace Period
A feature of some credit card accounts that allows an interest-free period of time between the transaction date and the billing date. If there is no grace period, finance charges will accrue immediately when a purchase is made with the credit card.
Household Income
The total income of all members of a household. The income can come from many sources, including wages, commissions, bonuses, alimony, child support, Social Security/retirement benefits, unemployment compensation or disability, dividends, and interest. Income from alimony, child support, or separate maintenance payments need not be disclosed unless you want it considered in determining your creditworthiness.
Insolvent
Unable to pay one's debts.
Insufficient Funds
When a check is returned because there are not enough funds in a checking account. Commonly used expression is "bounced check."
Internet
A collection of networks that are interconnected by linking devices such as bridges, routers, and gateways to operate as a single large network that allows millions of people to share information.
Issuer
The banking institution that issues the credit card. Washington Mutual Bank is an example of a credit card issuer.
Joint Account
A credit card account for which two people are both responsible for paying the balance on the account.
Late Fee
The fee charged to your account if your minimum monthly credit card payment does not reach your lender by the due date on your payment coupon. Your payment must be received by that date to be on time.
Minimum Payment
The smallest amount of your balance you can pay by the due date and still meet the terms of your Account Agreement. You can always pay more than your minimum payment. Your minimum payment can vary from month to month based on your current balance.
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Overlimit
The amount of your balance that exceeds your credit limit. If this occurs, you may be charged an overlimit fee.
Past Due
The status of an account when the minimum payment has not been received by the due date.
Pending Authorizations
The state of a transaction processed on your account before the lender receives a sales draft from the merchant. When the lender receives the sales draft from the merchant, the Pending Authorization then becomes a charge. If the lender does not receive a sales draft within a specified time period, the transaction will automatically fall off of your account.
Personal Identification Number (PIN)
A secret number that is mailed to you that allows you to use your credit card at ATMs.
Point of Sale Terminal
Device used by merchant to scan the credit card for authorization of charge.
Post Date
The date when the cash advance, purchase, or payment is processed by the lender.
Prime Rate
A banking index that is published on the first business day of every month in The Wall Street Journal. Many variable APRs are tied to the Prime Rate
Processing Fee
The charge which may be assessed to cover the cost of processing an application and setting up a new credit card account.
Statement
A monthly summary which itemizes your charges and credits. It includes the minimum payment due on your account and the due date.
TransUnion
One of the three major credit bureaus.
Transaction Date
The actual date that a cash advance is taken, a purchase is made, or payment is credited to the account.
Wire Transfer
A transfer of funds electronically from an account in one banking institution to an account in another banking institution.
World Wide Web (WWW)
A client/server hypertext system for retrieving information across the Internet.
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