For the novice or aspiring cardholder, credit card applications and offers can be quite confusing, considering all of the seemingly esoteric terminology used by financial institutions. Without the proper understanding of the terminology, cardholders can be persuaded into applying for credit cards that charge unfair fees and interest rates. Before applying for a card, applicants should understand the following important credit card terminology:

Balance

Since credit cards are actually ongoing loans, the term “balance” can be somewhat confusing, as the money within the credit card account does not technically belong to the cardholder. The credit card balance is defined as the total sum of all purchases, cash advances, card fees and finance charges. In

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Large numbers of Australians are expected to use their credit cards to cover their bills in the next three months.

Those aged between 18 and 34 were expected to be the most likely to compare credit cards in order to get the best deals.

Statistics compiled by Dun & Bradstreet (D&B) found that 45 per cent of people with children would utilise their plastic to cover unaffordable expenses, while 31 per cent without dependents pledged to do likewise.

Young Australians who earn less than $80,000 a year were deemed to be the most likely to be lured by the appeal of credit cards, the report noted.

D&B chief executive Christine Christian believes using cards in this fashion can lead to problems in future years.

“Many Australians are using credit in ways that may eventually harm them and expected interest rate rises later in the year may be the trigger that causes distress for many households,” she remarked.

A survey conducted by the Reserve Bank of Australia showed 60 per cent of Australians pay for their bills online.

Have a question about credit cards?

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Netflix has attracted more than 20 million subscribers, more than 20,000 movies and television shows for its online service, and more than its share of headaches in Hollywood.

There’s one thing it has yet to attract: competition. Netflix is the only company that streams a large selection of movies and TV shows online for a monthly fee.

That will probably change. Retail giants such as Wal-Mart Stores Inc., Amazon.com Inc., and Best Buy Co., Internet television provider Hulu, and satellite broadcaster Dish Network Corp.

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Credit scores fell during the first quarter, according to the CreditKarma.com U.S.

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As credit card companies compete heavily to solicit new customers by offering lower interest rates they have to find creative ways to recuperate some of the profits that they lose due to these lower interest charges. There are a plethora of different types of credit card fees that cardholders are subject to.

The following paragraphs outline five of the more common credit card fees which are likely to be encountered.

Late Payment Fees

Late payment penalties account for millions of dollars in charges, and no credit card is immune to them. These fees usually range from $15-$40 per billing cycle and are incurred every time a payment is missed or less than the minimum amount due is paid.

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