Finance

Credit cards: the essential Key terms finally explained

Whether you’re shopping for a new card or getting a handle on an existing one, here are the key terms you need to know to manage your credit cards.

A "Plain vanilla" credit card
A "Plain vanilla" credit card

Daily periodic rate

Some card issuers calculate interest on the account using a daily periodic interest rate, which is used to calculate interest.

Grace period

A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date.