Credit Card Types and Glossary

Business credit Card – Certain cards are aimed predominantly at businesses and business users.

Charge Card – Sometimes confused with credit cards. The balance on a charge card must be settled in full each month.

Charity Card – This is a type of Affinity Card which allows you to aid a charity by simply using your card as normal.

Classic/Standard Card – Your everyday credit card; these normally have the lowest credit limits.

Gold Card – Similar to the Standard/Classic card but normally with a higher credit limit. In order to get the higher credit limit, you would require a higher level of income.

Platinum Card – Similar to the Gold Card but with a higher credit limit. Normally requires a higher level of income.

Store Card – This is a type of Affinity Card. Some retailers are able to offer credit cards via the use of a third party. They normally offer goods, services or ‘points’ as they are used which are available from the issuing store or another participating store chain. They are also sometimes referred to as Loyalty Cards.

Student Card – These are credit cards that are aimed mainly at students.

Titanium Card – Similar to the Platinum Card but with a higher credit limit. Generally requires the highest level of income.

Affinity Card – This is a type of card that is offered jointly by an organisation and a credit card company. The organisation would get a percentage of the revenue generated by the users of the card.

Annual Fee – Some credit cards carry a yearly charge. This may be something to look out for depending on the sort of credit card you are interested in.

Annual Percentage Rate (APR) – The Annual Percentage Rate (normally referred to as APR) tells you how much interest you will pay on the balance of your credit card.

Bad Debt (Poor Credit) Card – This type of credit card is targeted at those who have significant debts or poor credit rating/history.

Balance – Your balance is your current credit (i.e. how much money is owed on your credit card).

Balance Transfer – You might decide that you would like to use a different credit card and would like discontinue with a current card. Any outstanding credit (balance) can be transferred to the new card. Also see Balance Transfer Rate

Balance Transfer Rate – Some card issuers offer special introductory rates (normally for a limited time) on balance transfers.

Credit Limit – Your credit limit is the maximum amount of credit your card issuer will allow on your card. Once you have reached your credit limit, your card is normally rejected if you attempt to use it.

Internet Fraud Guarantee – Some credit cards offer you a guarantee should you be a victim of internet fraud.

Introductory Rate – Some credit cards offer you a special introductory rate (normally for a limited time period) even if you have not transferred a balance across from another credit card.

Low Interest Card – These are the cards that offer the lowest standard APR (after introductory or balance transfer offers have stopped if a temporary special rate is initially on offer).

Minimum Payment – A credit card company will ask a minimum amount to be paid on your balance. The minimum monthly payment normally goes up as your balance increases.

Overseas Transaction – These are transaction that you have made in another country and normally carry a charge. The value of the transaction should be shown in Pound Sterling on your credit card statement.