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Loans and Credit Cards Glossary - C
Money terms defined on this page:
For a full glossary list click here
Cash advance
This is the credit card term for taking money out from an ATM or cash machine. If you withdraw cash on your credit card, you’ll normally have to pay a fee regardless of where you make the withdrawal – check with your credit card company for more details.
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Cashback
This type of credit card deal is one where a small percentage of the value of your purchases is given back to you. This is especially useful for those who rack up a large debt on credit cards, and those who spend a lot buy repay it in full every month.
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Charity cards
This is a particular type of affinity card that gives a small percentage of the money you spend to the charity of your choice. Charity cards normally bear a picture or logo representing your charity on the front, but are provided by MasterCard or Visa.
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Charge cards (credit cards)
This is a type of card given out by banks instead of a credit or debit card. It works like a credit card, but you must pay off your debt in full every month.
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Cheque accounts
A cheque account is similar to an instant access savings account. With this type of bank account, there are limited everyday banking facilities but you will receive a cheque book.
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Chip and PIN
This is a new system that has now been rolled out across the UK, allowing you to pay for goods and services by entering your PIN instead of using your signature, which is easily forged and found (on the back of your card) by anyone who wishes to use it.
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County Court Judgements
A County Court Judgement (or CCJ) may be filed against you if you’re finding it hard to repay your debts. If you can pay it off within a month, it will be removed from your record. If not, this will count against you when you apply for a credit card, loan or any other type of credit.
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Current accounts with overdraft
If you’re applying for a current account with an overdraft, your bank will have to perform a credit check. You’ll also have to pay interest on your overdraft, except in some cases where you get an interest-free ‘buffer’. Student accounts also tend to have an interest-free overdraft.
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Credit assessment
Every lender will have to perform a credit assessment (or credit rating) on you, to make sure that you’re likely to pay your credit card bills. This will take into account any arrears you have, County Court Judgements (CCJs), and other loans and credit cards. Credit cards with higher APRs tend to have less stringent checks.
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Credit limit
This is the amount your credit card will allow you to borrow, in total. It works like an overdraft limit, and you will not be allowed to exceed your credit limit without written permission from your card issuer.
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