Clear definitions of key Australian Australian credit card repayments, debt payoff and balance transfers terms. Use this glossary alongside our calculator to understand your results.
A yearly charge for holding a credit card. Can range from $0 to $700+ for premium cards. Must be weighed against rewards value.
The annual interest rate on a credit card, used to calculate daily and monthly interest charges on outstanding balances.
A debt repayment strategy where you pay minimums on all cards then direct extra funds to the highest interest rate card first.
Moving an existing credit card balance to a new card, often to access a 0% or low promotional interest rate.
Withdrawing cash using a credit card. Attracts immediate interest (no interest-free period) at higher rates than purchases.
The maximum amount you can charge to your credit card. Lenders assess the full limit — not just the balance — when evaluating new credit applications.
A fee paid by merchants to card networks for processing transactions. Rewards programs are largely funded by interchange fees.
The period (typically up to 55 days) during which no interest is charged on purchases, provided the full balance is paid by the due date.
The smallest amount you must pay each month to avoid penalty fees. Paying only the minimum results in very slow debt reduction and massive interest costs.
The standard purchase rate that applies after a promotional period (such as a 0% balance transfer period) ends.
Points, cashback or miles earned on card spending. Only valuable if the balance is paid in full each month; otherwise, interest costs outweigh rewards.
A debt repayment strategy where you pay minimums on all cards then direct extra funds to the smallest balance card first.
Now that you understand the terminology, use our free Credit Card Repayment Calculator to calculate your results. All terms above appear throughout the calculator and our guides.
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