Jargon Buster

What is a credit card?

A credit card is a way of borrowing money. You can use it to buy things you want now, and spread repayments - making it more convenient for you. A credit card can be used in place of cash or cheques wherever you see the VISA or MasterCard symbol, or to get cash from an ATM. You can choose to repay your credit card in full each month or make any payment as long as it is more than the minimum payment.

What are VISA and MasterCard?

VISA and MasterCard own the international systems that allow you to use your card in more than 24 million outlets worldwide. You can use your card wherever you see a VISA or MasterCard symbol, as shown on your card.

What is an APR?

APR (Annual Percentage Rate) is the total charge of credit on your account expressed as an annual rate. It is used across the whole UK financial industry to allow you to easily compare different financial products. When the APR is calculated, all interest and any monthly, quarterly or annual charges that apply either to purchases or for holding the card are accounted for and it is assumed that you maintain a balance over the year. The APR you are charged is shown on your statements and is subject to change from time to time. 

What is an annual fee?

Annual fee is the amount a credit-card company charges consumers for using the card and its service. This varies from company to company and not all credit card companies ask for an annual fee.

What is the 'Minimum Payment'?

The minimum payment is the least amount you need to pay to your credit card each month and is shown on your statement. The amount you have to pay may vary from credit card to credit card and may be varied from time to time. At aqua it is currently calculated as 3% of your outstanding balance or £5, whichever is the greater.

What is a CCJ?

A County Court Judgment is a judgment issued by the court when you have failed to make the payments stated in the contract of your credit agreement. If you are unable to pay the full amount owing at the time of the judgment, the courts usually set an affordable regular payment based on the individual's circumstances. Generally if a CCJ is paid in full within 30 days of the date of the judgment it won’t appear in the credit register. CCJ’s are a matter of public record. They are catalogued and held for 6 years with the Registry Trust. If a judgment is settled after the 30 day period it will be entered into public record and will appear on credit searches against your name, normally affecting your credit rating.

What is a Credit Card Agreement?

A credit card agreement is a document that outlines the agreement between the lender and you, the borrower. It is important that you read this carefully as it outlines the terms of the agreement to lend the money to you and by signing it you agree to be legally bound to its terms.

What is a PIN?

A PIN (Personal Identification Number) is a 4-digit code that will enable you to withdraw cash from cash dispensers. New Chip and PIN technology that has been introduced in the UK means that you now also need your PIN to make purchases. You must always keep your PIN secret and never reveal it to anyone else. You will be given a PIN when you receive your credit card, this should arrive shortly after you have received your credit card.  A PIN can be changed using the PIN change facility on any ATM. Any PIN change is live with immediate effect.

How does the new Chip and PIN system work?

To help reduce the number of fraud cases, a retail system called Chip and PIN has been introduced worldwide. Now rather than signing a receipt when buying goods, you enter a 4-digit PIN into a keypad.  This system is more secure and will help prevent fraud.