What is a
Credit Card?

Understanding Credit Cards – Useful Terms

• Statement period: The period in which the transactions reported on your statement relate to. Generally, your statement period will be every 30 days, the actual dates can vary slightly from month to month.
• Interest: When you use your Credit Card, you will be charged interest unless you repay the full closing balance by the Payment Due Date shown on your statement. Interest will be expressed as an annual percentage rate.
• Interest free days: Interest free days are the time from when you buy something using your Credit Card to when interest is applied to that purchase.
• Repayments: When your statement arrives, you’ll need to choose how you want to make repayments. You can choose to repay the entire closing balance on or before the Payment Due Date shown on your statement, in which case you’ll avoid paying interest. You also have the option of paying the minimum payment, however you will be charged interest on the unpaid balance.
• Closing balance: The amount you owe at the end of a statement period.
• Credit Card limit: A Credit Card limit is set when you’re approved for a Credit Card and is the maximum amount of credit you can use on your Card. All Credit Cards have a maximum and a minimum Credit limit.
• Annual fee: An annual Credit Card fee is a fee paid once per year to a financial services provider, in return for access to benefits and services on the Credit Card product you hold. Not all Credit Cards have an annual fee and American Express offers a range of no annual fee Cards. An annual fee is however charged on some Cards in return for richer rewards, features and benefits.
• Balance transfer: A balance transfer is when you move an existing Credit Card balance onto another Credit Card. If you have a high interest Credit Card balance you’d like to pay off, a balance transfer to another Credit Card with a lower interest rate can help you keep on top of your payments.
• Membership Rewards: If you choose a Membership Rewards points earning Card, you’ll earn Membership Rewards points through the American Express Membership Rewards loyalty programme. Membership Rewards points that can be redeemed for your next travel adventure, a new outfit, concert tickets and more of the things you love.