Credit Cards Jargon Buster
We've provided simple definitions for industry jargon. If you can't find the term you need in our Top 20 list, click on the first letter of the word or phrase from the alphabet below.
Credit cards I terms:
- Interest-free period
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There are normally two separate instances where you will not have to pay interest on your card balance; on your initial balance transfer and for a set period of time after you receive your statement each month. When you get a new card you may be given an interest-free period of between three months and a year to pay off any balance transfers from your old credit card, store card or loan. This service usually carries a one-off handling fee. You’ll also usually be given an interest-free period every month after you receive your statement. If you pay off your statement balance in full before the end of the interest-free period you won’t pay any interest on your purchases. This does not generally apply to balance transfers (after the introductory period), cash withdrawals or cheques drawn from your credit card account. The interest-free period on all Barclaycards is 56 days.
- Introductory rates
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A low rate applied at the beginning of your account that will switch to a higher fixed or variable rate after a set period, usually between three months and a year. Make sure you’re aware of when the introductory rate finishes and how much interest you will pay after that. You can normally avoid paying any interest on your purchases if you pay off your statement balance in full before the end of the interest-free period.