Credit cards
Understand your credit card. Keep track of what you owe, your limit and the dates that matter.
What these terms mean
APR
The Annual Percentage Rate, the yearly cost of borrowing on the card if you carry a balance, including interest and standard fees, expressed as a percentage. It’s printed on your statement or credit agreement.
Credit limit
The most you’re allowed to owe on the card at any one time, set by the card issuer. Going over it can trigger a fee or a declined transaction, depending on your card’s terms.
Minimum payment
The smallest amount you must pay each month to keep the account in good standing. Paying only the minimum means the rest carries over, and interest applies to it: it isn’t the amount that clears the balance.
Promotional rate
A temporary rate, often 0%, that some cards offer for a set period, commonly on balance transfers or new spending. Once the period ends, the rate usually reverts to the card’s standard APR.