Billing and Payment

The purchase annual percentage rate is the rate applied to a purchase balance to calculate the finance charge for the billing period, when it applies. When you charge a purchase to your credit card and carry the balance to the next billing cycle, for example, there will be a purchase APR applied to the unpaid portion of the balance.

An annual percentage rate (APR) is the interest rate you pay each year on a loan, credit card, or other line of credit. It’s represented as a percentage of the total balance you have to pay.

A credit card’s penalty rate is a rate the credit card issuer charges you that’s higher than your regular APR. If your card has a penalty APR, your issuer can apply the rate to your existing balance if you are more than 60 days late on a payment. If they do so, by law they have to notify you of the rate increase 45 days in advance.

Your credit card’s payment due date is the date on which your bill is due. If you pay at least the minimum payment due before or on the due date, your payment will not be considered late and you’ll avoid a late fee and, possibly, an interest rate increase.

Credit card delinquency is a status indicating that your payment is past due by 30 days or more. A delinquency can affect your credit score and impact your ability to get approved for any new credit-based applications.

A late payment is when you do not pay your minimum amount due by the date listed on your credit card statement. Consequences of a late payment include a late fee and, in some cases, an increased APR and a reduced credit score.

A charge that your credit card issuer assesses to your account if don’t make the minimum payment due by the due date listed on your credit card statement. Fees vary by the card you own, but they typically range from $0 up to $40.

A credit card minimum payment is a payment that meets the minimum payment due on the account’s billing due date. In most cases, your minimum payment will be a small percentage of your balance or a small percentage of your balance plus any interest charges.

A credit card disclosure is a document that outlines all of the fees, costs, interest rates, and terms that a customer could experience while using the credit card. Institutions that offer credit cards are required by law to disclose this information.