Annual Fee
Credit card companies may charge a yearly fee for providing you with a credit card account. Annual fees for credit cards range from $0 to $80.00. When choosing a credit card for balance transfers, be sure to take into account the cost of the annual fee.

APR
APR is the abbreviation for annual percentage rate. This is the rate of interest charged annually. Credit cards come with three different APRs: purchase, balance transfer and cash advance. The APR rates for purchases, cash advances and balance transfers usually vary, with purchases being the lowest and cash advances the highest.

Balance Transfer
A credit card balance transfer allows you to move your total balance or a portion of your total balance from your current high interest rate credit card to a new low interest rate credit card. The new credit card company will send you checks in the mail to pay off your current credit card bill, or will ask you for the information and send payment to your desired credit card company for you. In either case, it is important for you to follow up and make sure payment is made. Also, be sure you continue to make your monthly payments until you have verified that your current credit card company has received the check from your new credit card company.

Billing Period
The number of days that credit card companies use to calculate the interest you owe on your credit card balance. This is typically 30 days, but there are some credit cards that have shorter billing periods.

Cash Advance Fee
The fee or rate charged by credit card companies upon withdrawal of cash from your credit card account. The interest rate on a cash advance is often high, so cash advances can be expensive. Additionally, unlike a regular charge, cash advances are subject to this higher interest rate from the day you take the advance.

Credit History
A credit report which shows your loan payment history, late payments, the number of inquiries by prospective creditors, debt forgiveness, bankruptcy filings, and the existence of any liens.

Grace Period
The grace period is the number of days credit card companies allow you to pay for a charge without paying any interest. If you have not made payment during the grace period, you will begin to be charged interest. Most credit card companies have a grace period between 20 and 25 days.

Over-the-limit fee
An over-the-limit fee is charged if you go over your credit limit. This fee ranges from $15.00 to $40.00.

Prime Rate
The prime rate is the interest rate that commercial banks in the U.S. charge their best customers. The prime rate is regularly used as an index or standard of measure by credit card companies to determine the interest rate for their business.

Reward Cards
A credit card that rewards the cardholder with points, miles, or similar compensation for each dollar in new purchases. Frequent-flier cards fall under this category. For example, if you were to spend $2500 using a frequent-flier card, the airline affiliated with the card company would reward you with 2500 miles. Other rewards cards include merchandise and cash rebate cards.

Teaser Rate
An interest rate on a credit card that is below the normal rate of interest. Teaser rates are offered temporarily by credit card companies to generate new business. They are also called introductory, or intro rates. Some teaser rates are now 6 months in length on balance transfers and purchases.