Glossary
| Additional cardholder fee | Some cards charge a fee for additional cardholders. It is charged once a year at the same time as your annual fee. |
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| Annual fee | The fee charged annually for the use of the credit card. |
| Average daily balance | This is determined by adding up all balances during the month, then dividing the total sum by the number of days in a given billing cycle. Most credit card providers calculate the daily balance based on the annual rate. So, for example, if the annual interest rate is 12 per cent, the monthly periodic rate would be 1 per cent. If the average daily balance on the card is $200, then the monthly charge would be $2.00. |
| Balance transfer | Transferring the outstanding balance on your credit card or store card to another card, usually one with a better rate. |
| Balance transfer fee | A fee charged when you make a balance transfer. It may be a flat fee or a percentage of the transfer. |
| Cash advance fee | Withdrawing cash from a line of credit, usually incurs additional fees or a higher rate of interest. |
| Cash card | Often called gift cards; a cash card is a prepaid card with a set balance. Can either be to a specific retailer or like a debit card that can be used with merchants using EFTPOS. |
| Charge card | Rather than having a revolving line of credit, with a charge card, the full balance must be paid off every month. |
| Credit limit | The maximum amount you can spend with your credit card. |
| Credit report or credit history | A report from a credit agency that contains a history of your payments on current and previous credit cards and loans. Lenders use your credit report to decide how likely you are to repay a future debt and whether or not to lend money to you. |
| Credit rating or credit score | A number that represents your credit worthiness, based on your credit repayment history. The score is based on several factors, including whether you pay your bills on time, your current level of debt, the types of credit and loans you have, and the length of your credit history. Your credit rating is used by lenders when deciding whether or not to lend money to you. |
| Creditor | The lending agency that is owed money. |
| Default | When a consumer fails to make the necessary payments on a loan or credit card payment. Defaults cause serious damage to your credit report. |
| Debit card | Allows you to access the money in your cheque or savings account electronically to make purchases. Either requires a PIN or signature to confirm identity, and the funds are removed from your account almost immediately. |
| EFT | Electronic Funds Transfer. The transfer of money between accounts by electronic machines like ATMs, home computers and EFTPOS machines. |
| EFTPOS | Electronic Funds Transfer at Point Of Sale. Usually refers to a small machine that merchants use to receive credit and debit card payments. |
| Full balance | The entire amount spent on your card that month. |
| Interchange fee | Fees paid between your bank and a merchant’s bank to accept card-based transactions. |
| Interest rate | The rate at which your outstanding balance increases per month if your bill is not paid in full. |
| Interest free days | The number of days you have to pay your bill in full before interest is charged on the outstanding balance. Interest-free days do not typically apply to cash advances. |
| Introductory rate | An initial interest rate charged when you first acquire your credit card. These rates usually begin low, but revert to the standard high rates after a certain period of time. |
| International transaction fee | Charged if you make a purchase either while overseas or shopping online from Australia, and the merchant or financial institution processing the transaction is located overseas. |
| Late payment fee | This is charged if you don’t make your minimum payment by the payment due date. |
| Minimum interest charge | The minimum amount of interest you will be charged if you are charged any interest. For example, if your total interest charge is $0.90 but the credit card company’s minimum interest charge is $1.00, you will be charged $1.00. |
| Minimum payment | The amount listed on your bill as the minimum your bank requires you to pay off your credit card balance at the end of the month. If you don’t make your minimum payment by the payment due date, you may be charged a late payment fee. |
| Overdraft | An overdraft occurs when you write a cheque, make an ATM transaction, use your debit card to make a purchase, make an automatic bill payment or other electronic payment, for an amount greater than the balance in your account. |
| Over-the-Credit-Limit Fee | A penalty fee charged to you for exceeding your credit limit. |
| Penalty fees | Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account. For example, if you make a late payment or if you exceed your credit limit. |
| Purchase interest rate | This is the interest rate charged on purchases. Most credit cards come with an interest-free period on purchases of up to 55 days. |
| Revolving account | Any account in which there are not a scheduled number of payments and the full balance need not be paid off monthly. Credit cards are the most common type of revolving account. |
| Rewards program | Benefits that come with the use of a credit card, often in proportion to the amount of money spent on it. Can come in the form of cash back, shopping vouchers, frequent flyer points and rewards. |
| Universal default | When one financial institution treats a lender as if they had defaulted when the lender defaults with a different institution. |
Popular credit card features
What you need to know
You must be a member of the Qantas Frequent Flyer program to earn and use Qantas Points. A joining fee may apply. Membership and points are subject to the Qantas Frequent Flyer program Terms and Conditions.
The credit card products referred to on this webpage are not Qantas products and not offered or issued by Qantas but by the relevant credit licensees. The information about the credit products has been provided by the relevant credit licensees and not Qantas. Qantas does not hold an Australian Credit Licence and is not a licensee in relation to the credit activity being engaged in by the relevant credit licensees.
The information on this webpage is factual and of a general nature only and does not consider your personal objectives, financial situation or particular needs.
Qantas is not recommending the products described on this webpage. We recommend that you obtain independent advice before you apply for any product which is described on this webpage. Qantas does not accept liability for any loss arising from the use of, or reliance, on the information provided on this webpage.
Points are offered by the relevant program card partner and partner reward program and can only be earned on eligible purchases. Bonus points amounts offered are different for each credit card. Minimum spend criteria, terms and conditions, fees and charges may apply.