Briefly answer the following questions or define these terms:
- Annual Fee
Any fee that is charged on an annual (yearly) basis. One of the most common occurrences of an annual fee is the fee that is charged by some credit card companies to their credit card holders, simply for having the credit card.
- Annual Percentage Rate (APR)
An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.
- Credit Line
an amount of credit extended to a borrower.
- Cash Back/Rewards
A cashback reward program is an incentive program operated by credit card companies where a percentage of the amount spent is paid back to the card holder. Rewards based credit card products like cash back are more beneficial to consumers who pay their credit card statement off every month.
- Balance
An account balance is the amount of money in a financial repository, such as a checking account, at any given moment. It can also be the total amount of money owed to a third party such as a credit card company, utility company, mortgage banker or other type of lender or creditor.
- Minimum Payment
Making the monthly minimum payment on time is the least a consumer needs to do, to avoid late fees and to have a good repayment history on his credit report. The amount of the minimum monthly payment is calculated as a small percentage of the consumer's total credit balance.