Small Business Credit Services Terms

Below are a few of the terms associated with Credit Services along with their meaning. Familiarizing yourself with this information may help you when evaluating and negotiating Credit Services relative to your business needs.

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Annual Percentage Rate (APR) - The cost of credit that consumers pay, expressed as a simple annual percentage.

Charge Card - Used for making purchases each month and paying off in full each month.

Credit Card - Used for making purchases on an ongoing basis where monthly payments are made over time and an interest charge applies to outstanding balances.

Credit History Requirement - The preferred status of your credit history relative to qualifying for a specific credit tool. This is commonly described in terms of good to excellent.

Introductory Annual Percentage Rate (APR) - The cost of credit for a specified introductory period that consumers pay, expressed as a simple annual percentage.

Introductory Annual Percentage Rate (APR) Period - The cost of credit for an annual introductory period that consumers pay, expressed as a simple annual percentage.

Annual Fee - A lender's annual charge for making credit available.

Grace Period - This is NOT an extension of your payment due date. If you are not carrying a balance, it is the period you have to pay new balances before interest charges apply.

Late Fee - A penalty fee applied when making payments after the required due date.

Over Limit Fee - A fee charged when you charge your credit card over the specified limit.

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Note: This information is presented to provide a general overview of small business options and related services. It is not intended to be an exhaustive representation. Data has been compiled by the Knowledge Institute for informational purposes only. Content is provided on an "as is" basis and is not intended to, nor does it, provide advice or create a customer relationship between the Knowledge Institute, BUZGate™ and/or any other organization named herein, and any reader.

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