Glossary
We've organized the most common financial terms and explained them in simple, friendly ways.
Balance Transfer
The process of transferring debt from one or multiple credit cards to another card, typically a brand new one, that offers more favorable interest and payment options to the user (e.g., a lower interest rate or a 0% APR introductory offer).
Billing Cycle
The time frame (typically monthly) associated with a statement balance on a financial product (e.g., credit card), in which an account holder is billed for payment with a corresponding due date.
Bonus Points
A type of credit card reward that is earned on purchases through a multiplier system (i.e., 5x bonus points), which can be redeemed on certain card issuer loyalty programs (e.g., airline tickets, hotel reservations, gift cards).