The credit card points & miles space is filled with confusing language and jargon. I hope this resource helps to clarify some common terms:
5/24 - The "5/24 rule" means that if you have opened 5 or more new credit card accounts (from any bank) in the past 24 months, you may be automatically declined for certain Chase credit cards
APR - (Annual Percentage Rate) - The annual interest rate charged on balances carried over month-to-month on a credit card. It’s expressed as a yearly percentage.
Authorized User - Someone added to a credit card account who can use the card but isn’t responsible for payments. Their activity can impact both users’ credit scores.
Balance Transfer - Moving debt from one credit card to another, often done to take advantage of lower interest rates or 0% introductory APR offers. A fee (typically 3-5%) is typically charged when you move a balance from one credit card to another.
CSP and CSR - some of the most commonly mentioned Chase Bank cards are the "CSP" (Chase Sapphire Preferred) and "CSR" (Chase Sapphire Reserve).
Credit Card Transfer Partners - Airlines or hotel chains that have agreements with credit card issuers, allowing you to transfer your credit card points or miles to their loyalty programs.
Elite Status - A higher tier of membership within a loyalty program, offering additional perks such as priority boarding, lounge access, complimentary upgrades, and more.
FICO Score - A credit score model used to assess your creditworthiness, typically ranging from 300 to 850. Higher scores mean better credit.
Foreign Transaction Fee - A fee charged (usually 1-3%) on purchases made outside of your home country or in a foreign currency. Some credit cards offer the benefit of "no foreign transaction fees."
Points/Miles - Virtual currency earned through credit card spending or loyalty programs, which can be redeemed for travel-related expenses like flights, hotel stays, and more.
Retention Offer - An incentive offered by a credit card issuer to encourage cardholders to keep their card open, often in the form of bonus points or a statement credit.
SUB/Sign-Up Bonus - Extra reward points or miles offered by credit card issuers for meeting a spending requirement within a specified time after opening an account. Also sometimes called a welcome bonus.
Transferable Points - Credit card rewards that can be transferred to various airline or hotel loyalty programs, providing more flexibility in redeeming travel benefits.
Travel Portal - An online platform provided by credit card issuers or travel loyalty programs where you can book flights, hotels, and other travel-related services using your rewards points or miles.
Utilization Rate (Credit Utilization) - The percentage of your total available credit you’re currently using. Keeping this low (below 30%) can positively impact your credit score.
Comments