If you’ve read the terms and conditions of a credit card application, you’re probably aware of how daunting they can be. Credit card terms typically use financial jargon the average person will struggle to understand.

With this in mind, we’ve put together a short list of common credit card terms to help you make the most of these vital financial terms. Check it out below!

Introductory APR

APR—short for ‘annual percentage rate’— is the yearly interest rate charged on a credit card plus additional charges. Banks normally charge a lower (or no) APR when a customer first takes out a credit card. This ‘introductory APR’ is a fantastic way for cardholders to make advanced purchases without disrupting their cash flow.

Default Fees

A ‘default’ is another name for a missed credit card payment. Therefore, default fees are the charges you must settle if you don’t pay your credit card back on time. This makes ‘default fees’ one of the most important credit card terms.

Most banks set a minimum monthly payment cardholders must make to avoid default fees and keep their accounts in good standing. The fees compensate banks for the risk they take by lending money to cardholders through credit cards.

CUR

CUR is short for ‘credit utilization ratio’. As the name suggests, it refers to the portion of your total line of credit you use every month. For instance, if your credit card gives you access to $4,500 a month but you only end up using $900, your CUR is $900 divided by $4500, which equals 20%.

Banks use CUR to judge whether a customer is worthy of more credit. The lower your CUR, the greater your chances of being offered more credit through a card in a high tier, such as the AMEX Business Gold Rewards card.

If you’re looking to boost your CUR, avoid default fees, and take advantage of fantastic introductory APRs, we’re ready to help you at Great Canadian Rebates!

We’ve compiled key information on some of the best Canadian cash back and reward credit cards to help you choose a card and enjoy the numerous benefits these cards offer. Additionally, we publish a ton of helpful resources on our blog to help you make the most of credit cards.

Visit Great Canadian Rebates to find out more.