Jargon Buster 🔨

Banks use complicated words on purpose. Here is the simple truth for each one — with a desi example you will actually remember.

APRAPR is the yearly interest rate on unpaid credit card balances. Indian cards typically run 36–48% APR, or about 3–4% a month.
MAD (Minimum Amount Due)The Minimum Amount Due is usually 5% of your bill. It avoids the late fee but not interest, which still applies to your entire balance.
Statement DateYour statement date is when the monthly bill is generated. Purchases made after it land on next month's bill, giving up to ~50 interest-free days.
Grace PeriodThe grace period is the interest-free window between purchase and due date — up to 45–50 days, but only if you paid last month's bill in full.
Credit UtilisationCredit utilisation is how much of your limit you use, measured at statement date. Under 30% is the healthy zone bureaus prefer.
Hard vs Soft InquiryA hard inquiry happens when a lender checks your report because you applied, and can cost a few points. Checking your own score costs nothing.
Revolving CreditRevolving means carrying a balance month to month and paying interest on it. Card issuers earn most from revolvers — aim to be a transactor.
Forex MarkupForex markup is a fee, typically around 3.5% plus GST, added to every foreign-currency transaction — including foreign websites billing from abroad.
DCC (Dynamic Currency Conversion)DCC is when a foreign merchant offers to bill you in INR 'for convenience', hiding a poor exchange rate. Always choose the local currency instead.
Secured CardA secured card is issued against your own fixed deposit. No income proof needed, approval likelihood very high — the way to build credit from zero.
ChargebackA chargeback is your right to dispute a card transaction — fraud, non-delivery or a double charge — through your bank, which can reverse it.
Schedule of ChargesThe schedule of charges is the official document on your bank's website listing every fee on your card. Read it once, save it, stop guessing.
NPA / Settled / Written-off'Settled' means you paid less than owed and it scars your credit report for years. 'Closed' means repaid in full. Always aim for Closed.
Add-on CardAn add-on card is a supplementary card on someone else's account — their limit and their bill, but it can help the holder start a credit footprint.
Credit LimitYour credit limit is the maximum the bank lets you owe. How it is set, why using less of it helps your score, and why increases need your consent.
MITCThe MITC is the short, mandatory summary of your card's rates, fees and rules. Where to find it and the five lines actually worth reading.
Transaction ControlsRBI requires every card to have switches for online, international, contactless use and per-type limits. Five minutes in the app cuts most fraud risk.
TokenisationRBI barred merchants from storing your real card number. Saved cards are now tokens — random stand-ins useless anywhere else. What that means for you.
Virtual CardA virtual card is a digital number on your existing account — instantly issued, instantly blocked. Use it for new websites and free-trial signups.
CVVThe three digits on the back prove physical possession of the card. Why no bank employee ever needs it, and what a CVV request actually signals.
Zero LiabilityReport card fraud within three working days and RBI rules can put your liability at zero. The clock, the slabs, and the paper trail that protects you.
Unsolicited CardA card you never applied for is a rule violation, not a gift. RBI prohibits issuing without consent - do not activate it, and make the bank close it.
OverlimitGoing past your credit limit needs your explicit consent under RBI rules - no consent, no overlimit fee. What the facility costs and why to decline it.
EMI ConversionConverting a big purchase into card EMIs means interest, a processing fee, GST and a blocked limit. When it is worth it and what to check first.
No-Cost EMINo-cost EMI is real interest with better staging: hidden in the price, a forgone discount or a fee. Three places to look before you believe the zero.
Balance TransferA balance transfer moves card debt to a cheaper card or loan. It buys a lower rate and time - but the debt survives the move. When it helps, when it hides.
Credit MixCredit mix is the variety of secured and unsecured credit in your history. A minor score factor - and never a reason to take a loan you do not need.
DPDDPD is the month-by-month lateness grid on your credit report. What 0, 30, 60, 90 mean, and why even a small number is worth fixing fast.
Credit ReportThe report is the full file your score is computed from - accounts, DPD grid, inquiries. Every bureau owes you one free copy a year. Read it annually.
E-Mandate / AutopayAutopay on your card bill kills late fees forever. The one setting that matters: total amount due, never minimum. And the pre-debit alert to watch.
Fuel SurchargePetrol pumps add about 1% when you pay by card, and the waiver has caps and fine print. How the surcharge works and what the waiver really refunds.
GST on Card FeesEvery card fee and interest charge carries 18% GST as a separate line. Why the late fee stings more than advertised, and one waiver-related silver lining.
Card NetworkVisa, Mastercard, RuPay and Amex run the payment rails; your bank owns the relationship. Who does what, and which one to complain to.
Pre-Approved OfferPre-approved means pre-screened, not guaranteed. What the offer is based on, what still gets checked, and how to use one without a surprise rejection.
Card ClosureRBI gives banks 7 working days to honour a closure request - with a daily penalty after. Plus the one-year inactivity rule and the utilisation trade-off.
Fee ReversalBanks reverse first-slip late fees and negotiable annual fees more often than people ask. How to ask well, and when the Ombudsman enters.
Available LimitThree numbers people conflate: what you can still spend, what you currently owe, and what the last bill asked for. Which one to act on, and when.
Reward Points ExpiryPoints expire in 2-3 years, die at card closure, and devalue without notice. The habit that protects them, and where the rules must be written down.
Co-Branded CardAn airline or shopping brand on the card, but the bank behind it. Who sets the fees, who fixes problems, and RBI's data rule for the brand partner.
Lounge AccessCard lounge access comes as quarterly quotas, spend conditions and changing partner lists. What the benefit is really worth and how not to be surprised.

Words make more sense inside a story. Start the four learning paths →