Credit Card Glossary
This is the maximium amount you may use to spend on your credit card. Panelty may impose or stop your transaction should you exceed the credit limit. You may increase or descrease your credit limit by prior arrangment with the credit card issuer.
Interest free period
No interest will be charged, as long as the customer before the interest-free repayment deadline. The credit card market is not offering different interest-free repayment period ranging from 55-59 days.
TransUnion is a company that provides credit reports. Bank will assess your credit report upon receive your credit application. Your credit report includes factors such as your past payment history, current credit use and application data. Credit report is one of the key factor that will affect whether your credit request can be approved.
A credit card service which the bank will help cardholder to settle the purchase in full and cardholder will repay the purchase amount by installment.
A cash advance is a service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit.
You may choose to repay your monthly credit card balance by paying the minimum amount, which is a portion of your total monthly outstanding balance. The unpaid amount will be charged an interest fee. Usually, you will no longer be able to enjoy interests free period should you choose to repay minimum payment.
Dual Currency Credit Card
The credit card issuring bank in Hong Kong provides credit card in dual currency settlement of HKD and RMB. Transaction made in Mainland China will be settled in RMB while transaction made in Hong Kong and overseas will be settled in HKD. This product benefit those who are required to travel between Hong Kong and China frequently in order to save foregin exchange charges.
Card Payment Network
Visa, MasterCard, American Express and UnionPay are the leading card payment network providers. These companies provide a payment system so credit cards issuing bank and establish partnership with merchant establishment. The card issuing bank has to pay a fee to the payment network provider. At present, American Express is the only one that own the payment network as well as issuing their own cards.
Balance Transfer means transferring your outstanding balance (including high interest credit cards, revolving loans, personal loansor overdraft accounts etc.) to another account and settle the outstanding balance by installments. Usually balance transfer account will charge a lower interest rate and it allows you to repay the outstanding balance in a specified amount and period.
Most credit cards offer reward program. Customer may earn points, mileages or cash rebate base on their spending on the credit card. Some credit card will charge a fee to the reward program especially for those that allows customer to transfer points to frequent flyer program. Some points program will have an expiry date.