Credit-card desk · 23 terms

The offer language, translated into money consequences.

Each definition explains what the term means—and what it still does not prove about approval, rewards value, or whether you should apply.

Updated 2026-09-03 · Confirm current issuer terms before applying

APR: Annual percentage rate is the yearly cost of carrying a balance, stated as a percentage. A purchase APR, cash-advance APR, and penalty APR can differ on the same card. APR is not a ranking of rewards value and does not tell you whether you will be approved.
Promotional / intro APR: A temporary rate for purchases, balance transfers, or both. The useful facts are the rate, the start and end rules, which balances it covers, and the rate that applies afterward. An intro APR is not a promise that remaining debt stays cheap if you miss a payment or add new charges.
Grace period: The time between the end of a billing cycle and the payment due date during which new purchases may avoid interest if you pay the statement balance as required. Carrying a balance, using cash advances, or missing the issuer’s conditions can remove that treatment. A grace period is not extra time to spend without tracking the due date.
Annual fee: A yearly charge for keeping the card, often billed on the first statement and at each anniversary. Credits, lounge access, or bonus categories do not automatically offset it. Compare only benefits you will use against a realistic no-fee alternative.
Welcome bonus / sign-up bonus: A one-time points, miles, or cash offer that usually requires a minimum spend in a set window and may exclude existing customers. The headline number is not net value until you subtract the fee, unwanted spending, interest, and a redemption you can actually complete.
Minimum spend: The purchase amount required to earn a welcome bonus, not including some excluded categories such as cash-like transactions. Planned spending counts; invented spending is a cost. Meeting the minimum does not guarantee the bonus if the account, timing, or transaction type is ineligible.
Statement credit: A credit applied to your bill after a qualifying purchase or as a listed benefit. Face value is real only when you would have spent that money anyway and the credit actually posts. A credit that forces a different purchase is not the same as cash.
Cash back: A rewards rate paid as a statement credit or deposit. The useful comparison is the net rate after annual fees and category limits. Cash back is simpler to value than points, but it is still not a reason to carry a balance.
Points / miles: Issuer or airline/hotel currency that can be redeemed for travel, statement credits, gift cards, or transfers. Published “cents per point” figures are estimates, not cash. Value depends on the redemption you can repeat, not an exceptional booking someone else found.
Transfer partner: An airline, hotel, or other program that accepts transferred points, often at a stated ratio. A partner list is not inventory. Award space, surcharges, expiration, and transfer times can erase a paper valuation.
Category bonus: A higher earning rate on a spending category such as groceries or gas, often capped each quarter or year. The bonus applies only to transactions the issuer codes into that category. A posted category rate does not mean every merchant you consider “grocery” will qualify.
Balance transfer: Moving debt from one card to another, usually for a promotional APR and an upfront fee. The fee is part of the new balance. A transfer is useful only when the payment plan can finish before the promotion ends and new purchases do not restart the problem.
Balance-transfer fee: An upfront percentage, sometimes with a dollar minimum, added when debt is moved. A 3% fee on $8,000 is $240 before any interest. The fee is not “free financing,” even when the promotional APR is 0%.
Deferred interest: A financing offer that can charge accrued interest retroactively if the balance is not paid in full by a deadline. This is different from a true 0% promotional APR that charges interest only going forward. Read the contract; the advertising phrase “no interest if paid in full” is a warning to model the payoff date.
Variable APR: A rate that can change when an index such as the prime rate changes. Today’s APR is a snapshot. A variable rate is not a fixed loan quote and can rise during a long payoff plan.
Penalty APR: A higher rate the issuer may apply after a late or returned payment, according to the card agreement. It can last for a stated period or longer. Rewards do not offset a penalty rate.
Foreign-transaction fee: A percentage added to purchases processed in another currency or through a foreign bank. Some cards charge 0%; others charge around 3%. The fee is separate from the merchant’s currency-conversion markup.
Credit utilization: The share of available revolving credit you are using, often reviewed on individual cards and across cards. High utilization can weigh on a credit score even when you pay on time. Utilization is not the same as your interest cost, and paying early can change the number a bureau sees.
Authorized user: A person added to an account who can charge to the card while the primary account holder remains responsible for the bill. Authorized-user treatment of credit history varies by issuer and bureau. Adding someone is not the same as opening a joint account or guaranteeing they can help you meet a bonus.
Issuer application limits: Informal or published rules about how many cards, approvals, or accounts an issuer will allow in a period. These limits change and are not a public FICO factor. Do not treat forum rules as the current official policy; confirm only what the issuer discloses.
Product change: Moving an existing account to a different card from the same issuer, sometimes without a hard pull. Bonus eligibility, credits, and rates can change. A product change is not a new welcome bonus unless the issuer says so in writing.
Rewards devaluation: A reduction in what points buy, through higher award prices, weaker transfer ratios, or removed benefits. Past redemptions do not lock future value. When comparing cards, prefer a conservative point value you can still defend after a program change.
Purchase APR vs. cash-advance APR: Cash advances, some balance transfers, and cash-like transactions often use a higher APR, may have a fee, and usually have no grace period. A low purchase APR does not apply to every way you can use the card.

The offer language, translated into money consequences.

Use a worksheet, not a ranking.

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