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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.

Annual fee

The fee charged annually for the use of the credit card.

ASX trades

Australian Securities Exchange

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.

Establishment Fees

A one-off fee which may apply to set up a personal or other loan.

ETFs

An exchange-traded fund (ETF) is a managed investment fund that contains a basket of assets, which might include shares, bonds, commodities or more.

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.

Line of Credit

A personal line of credit is a type of credit account that allows you to access a predetermined amount of money for a fixed window of time. While the account is open, you can borrow this money to finance purchases as needed.

Maintenance Fee

Fee incurred if the aggregate of deposits made to the account in a month up to close of business on the last business day of the month is less than a specified threshold.

Margin Lending

Margin lending is a type of loan that allows you to borrow money to invest, by using your existing shares, managed funds and/or cash as security. It is a type of gearing, which is borrowing money to invest.

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.

Offset Account

Offset accounts work as a transaction account linked to your home loan. The money in that account ‘offsets’ daily against the balance of your loan. So, it reduces the interest you need to pay because interest is only charged on your net balance (i.e. your overall loan balance minus your offset account balance).

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.

Premium

A premium is the amount you pay an insurer for insurance cover.

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.

Redraw

Redraw is a simple way to access additional repayments that you have made on your home loan above the minimum required repayments, to pay for renovations or other expenses.

Once you have your home loan, you are required to make minimum repayments. If you make additional repayments above what is required and redraw is available on your home loan, these additional funds become part of your available redraw.

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.

Self managed super funds

A self-managed super fund (SMSF) is a private super fund that you manage yourself. SMSFs are different to industry and retail super funds.

Transaction Account

A transaction account is traditionally used for day-to-day expenses and often comes with a debit card so that you can withdraw cash or pay for things.

Universal default

When one financial institution treats a lender as if they had defaulted when the lender defaults with a different institution.

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.

Except for Qantas-branded products, products referred to on this webpage are not Qantas products and not offered or issued by Qantas but by the relevant Australian Financial Services Licence (AFSL) or Australian Credit Licence (ACL) holders. The information about the relevant product has been provided by the relevant licensees and not Qantas. Qantas does not hold an AFSL or ACL and is not a licensee or authorised representative in relation to the activities being engaged in by the relevant licensee (except for Qantas-branded products).

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 any 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 partner. Bonus points amounts offered are different for each product.