This fee helps offset costs issuers incur in maintaining accounts. This is the interest rate you must pay the lender for the use of borrowed money. It is expressed as a yearly rate. A cash advance feature may come in handy while traveling or for emergencies. Charge Card - With a charge card, also known as a single payment account, you must pay your entire bill each month.
Interest is charged on late payments, and there is usually an annual membership fee.
Contract - This is a legal document that binds you and the lender according to specific terms. You are responsible for meeting the terms of the contract when you sign it. In the case of a credit or charge card account opened by mail, you are responsible for meeting the terms of the contract when you first use the card. Credit - A form of trust. It is a promise to pay in the future in order to buy in the present.