Credit Card Glossary

    Credit card offers are full of jargon. These plain-English explainers cover the terms that actually affect what a card costs you and what you'll qualify for.

    Reviewed by the CompareMyCard editorial team · Last updated 14 August 2026

    What is APR?

    The annual percentage rate — the yearly cost of borrowing on your credit card, expressed as a percentage.

    What is credit utilization?

    The percentage of your total available credit that you're currently using — one of the biggest factors in your credit score.

    What is a sign-up bonus?

    A one-time reward for opening a new card and meeting a spending requirement within a set time window.

    Secured vs unsecured credit cards

    Secured cards require a refundable cash deposit as collateral; unsecured cards extend credit without one.

    Cash back vs points vs miles

    The three main forms of credit card rewards, and how much each is really worth when you redeem it.

    Credit score tiers explained

    How the 300-850 FICO scale breaks into bad, fair, good, very good and excellent — and what each tier qualifies you for.

    What is a balance transfer fee?

    A one-time charge, typically 3% to 5% of the amount moved, for transferring a balance between cards.

    What is 0% intro APR?

    A promotional period, commonly 12 to 21 months, with no interest on purchases, balance transfers, or both.