icon

Credit Cards Glossary

Definitions of terms commonly used for credit card applications.

Select your priority

Select your rewards preference

Select your annual fees

Credit Cards Terminology

A | B | C | G | I | L | M | N | O | P | S | T |

A

  • Annual Fee
    Yearly fee charged by the car issuer for using the credit card.

(Back to top)



B

  • Balance Transfer
    The act of transferring the outstanding balance from one card to another. Balance transfers are often done to take advantage of a lower interest rate.
  • Business Credit Cards
    Credit cards that are reserved specifically for businesses, from business-for-self to large enterprises.

(Back to top)


C

  • Cash Advance
    The act of withdrawing money from a credit card through a bank, ATM or convenience cheque.
  • Cash Back Credit Cards
    Credit cards that offer a cash refund based on the total usage of the card.
  • Credit Limit
    The maximum amount that you can charge to your credit card.

(Back to top)



G

  • Grace Period
    A period of time during which interest is not charged as long as a payment is made before the period is over. It starts at the statement date and ends at the payment due date.

    (Back to top)

I

  • Interest Rate
    A percentage that is applied to your outstanding balance to determine the interest charges payable.

    (Back to top)


L

  • Low-Interest Credit Cards
    Credit cards that carry a low-interest rate. This low interest can be on purchases, cash advances, and/or balance transfers.

    (Back to top)


M

  • Minimum Payment
    The minimum payment that must be made each month in order to keep your account in good standing.

    (Back to top)


N

  • No Annual Fee Credit Cards
    Their name says it all. These credit cards can be used as an emergency fund since they cost nothing to the individual to keep.

    (Back to top)


O

  • Over-Limit Fee
    A penalty fee resulting from charges to the card exceeding the credit limit.

    (Back to top)


P

  • Personal Identification Number (PIN)
    A password used to identify the authorized cardholder when making purchases with the credit card.

    (Back to top)


S

  • Secured Credit Cards
    Credit cards that must have a security deposit. These cards are generally meant for people with bad credit or no credit.
  • Student Credit Cards
    Credit cards that often have features that appeal to students, i.e. student rewards, no annual fees, etc.

    (Back to top)


T

  • Travel Credit Cards
    Credit Cards that offer travel rewards that can be redeemed for discounts on flights, hotels, car rental and other travel-related expenses.

    (Back to top)

Latest mortgage articles

Inflation is impacting your mortgage rate. Here's what you can do about it
Inflation is at its highest level in nearly 40 years. Those with variable-rate mortgages should consider comparing mortgage rates to offset rising interest rates.
Learn More
4 mins read
Should you buy a house right now, or wait until interest rates come back down?
House prices may be falling, but interest rates are rising. Where does this leave Canadians looking to buy property?
Learn More
5 mins read
Bank of Canada lifts lending rate to 3.25%. We ask a mortgage broker what this means for homeowners and buyers
On the heels of a 75-basis-point rate hike, Toronto mortgage broker Sung Lee weighs in on how best to approach your mortgage decisions.
Learn More
7 mins read

Subscribe to our newsletter

Stay on top of our latest offers, relevant news and tips!

Thanks for joining!

You'll be hearing from us shortly - stay tuned.