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Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
76% - Very Often
76% - Very Often
|Synonyms:||charge card, plastic|
|Notes:||A payment card that gives customers access to a revolving line of credit.|
|Tags:||banking, credit, credit card, financing, line of credit|
Definition of credit card (CC)
- credit card (CC)
- 1. A plastic card with a coded magnetic stripe that holds information and security measures for a revolving line of credit. The card holder is able to use the card to make purchases by signing a credit card slip at participating retailers or companies. Credit cards have credit limits and interest rates as determined by the card issuer. The card holder's income and credit report will determine the allowable credit limit.
Related Terms and Acronyms:
- American Express Company (AMEX, AXP) A corporation known for its credit card business.
credit rating (CR)
A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
➥ A metric to measure the credit worthiness of a debtor.
credit report (CR)
A report on a loan applicant's willingness and ability to make payments in a timely manner in the past. This report is provided to the bank by an outside agency.
➥ A report that outlines the credit worthiness of an individual or entity.
- expensing Government tax law allows individuals to expense certain business activities.
- interest-crediting methods A number of methods used to establish how interest is accrued, owed and dispersed to the parties due.
- line of credit (LOC) A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
- monthly periodic rate The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12.
- offline debit card A card with traits from both ATM cards and credit cards (usually VISA or MasterCard). Banks issue this type of card either instead of or in addition to an ATM card. The card can be used anywhere the VISA or MasterCard logo is displayed, but a line of credit is not accessed -- the customer's chequing account is debited. It is "offline" because the account is not directly accessed -- there is a delay of 24 to 72 hours before the debit is made in the account. If you sign a slip of paper to complete the transaction, it is offline. In the Canada, a Personal Identification Number (PIN) may be required to use an offline debit card.
- penalty rate Several percentage points higher than a card's current annual percentage rate, which goes into effect after two late payments. On some cards, a single late payment triggers a penalty rate.
- personal identification number (PIN) A unique, confidential number or pass code, usually consisting of four to six digits, entered by a customer when using an Automated Teller Machine (ATM) or Interac Direct Payment, that gives the customer access to his or her account.
More Related Terms and Acronyms
- affinity card — Definition
- Air Miles — Company, Definition
- authorized user — Definition
- automatic credit card payment (ACCP) — Acronym
- card holder agreement — Definition
- classic card — Definition
- consumer credit — Definition
- credit card number (CCN) — Acronym
- credit limit — Definition
- grace period — Definition
- personal consumption spending — Definition
- personal finance manager — Definition
- rebate card — Definition
- retail banking — Definition
- revolver — Definition
- revolving credit — Definition
- secured credit card — Definition
- smart card — Definition
- standard card — Definition
- teaser rate — Definition
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