Credit Card Glossary


The borrower, named on the Credit Card. 

Credit Card 

A line of credit that enables a borrower to use up to the set limit, pay down the balance, and borrow funds again. Credit cards are considered a revolving line of credit.

Credit Limit

A set dollar amount of money that a member qualifies to use.

Statement Cycle

The period of time that a statement is generated for.

Statement Balance

The balance as of the last day of the statement cycle.

Carrying a Balance

When a statement isn’t paid off in full, and the balance carries over to the next statement cycle.

Interest or Finance Charges

Interest that is accrued monthly when a statement balance isn’t paid off in full.

Annual Fee

A yearly fee that may be charged to the borrower or cardholder. Not all cards assess an annual fee.


A written plan that guides how a consumer manages income and expenses.

Debt Snowball

A strategy to pay off debt, outlined below.

  1. Create a working budget.
  2. Establish a dollar amount to apply to your debt each month. This should be the total of all of your minimum payments, plus an additional amount.
  3. Determine which account to target first. Your targeted account should have the lowest balance or the highest interest rate. 
  4. Make the minimum payment on all your debts, with all additional funds going to the targeted account.
  5. Once the targeted account is paid off, choose a new target.