Whether you’ve just signed up for your first loan or you’ve got a whole stack of plastic in your wallet, it’s easy to be confused by some of the language used in the financial world. Take a quick look at this glossary of commonly used terms to ensure you fully understand your credit card journey or loan terms — and make the most of every dollar you borrow.

An Annual Percentage Rate (APR) is the price you’ll pay in interest to borrow money over the course of a year. Generally, you can avoid this fee by paying a credit card balance in full by the due date every month (if you don’t, the amount can compound).

Authorized users have the authority to make purchases on someone else’s account. Adding someone as an authorized user may help them improve their own credit score, but they are not legally liable for charges or balances — the account holder is.

The balance is the total amount you owe to your credit card company based on your purchases. A reasonable balance is key to a healthy credit score.

A balance transfer is the process of moving your credit card balance from one card to another, with the idea that you can save money by moving your balance to a card with a better interest rate.

A cardmember agreement is a document required by federal law that describes the specific details, or terms and conditions, of your credit card account. It includes information such as the APR, fees, and payment schedule for the cardholder.

A cash advance uses your credit card to borrow cash from a bank or ATM. Typically, higher interest rates and fees apply than with standard purchases on your credit card.

Cash back is a type of credit card reward that returns a percentage of users’ money spent (usually 1-6% per transaction) in the form of cash bonuses. Cash rewards may apply to only certain spending categories or for all purchases, depending on the card.

Also called access or convenience checks, credit card checks are blank checks provided by your card issuer that allow you to access your credit line without using your card. Be aware that interest rates and fees may increase when using a credit card check.

Your credit limit, or credit line, is the maximum balance you’re allowed to carry on a card. Your limit is determined by your credit history, income, the type of card you have, and other factors.

Your credit score lets lenders know how likely you are to pay back borrowed money. It’s determined by credit bureaus using details from your financial history such as your debt-to-income ratio, payment history, and length of credit history.

If you see a fraudulent charge on your account — i.e. a purchase that you didn’t authorize — you have the right to dispute the charge with your credit card company.

Extended warranty protection is a benefit offered by some credit card companies that extends the manufacturer’s warranty for items purchased with the credit card.

A finance charge is an interest fee charged to any balance carried beyond your grace period. If you don’t pay off your full balance, you’ll pay a percentage of that balance as a penalty.

A charge for each transaction issued by credit card companies for using your card abroad. Three percent is a typical foreign transaction fee. Some travel-focused cards offer no foreign transaction fees.

Fraud occurs when someone uses your account or personal information to make unauthorized purchases or open accounts. This may happen if your credit card is stolen, or if the details of your account (such as card PIN and security code) are stolen. If you see fraudulent charges on your account, you can file a dispute with your card issuer.

A grace period is the stretch of time between your credit card closing date and due date in which you will not be charged interest on your balance.

A late fee is a penalty charge of up to $35 for missing your credit card’s due date.

The minimum payment is an amount set by your credit card issuer that you’re required to pay each month in order to avoid a late fee. You will still be charged interest on any remaining balance after your minimum payment.

This is a benefit offered by some credit card issuers that offers reimbursement for the difference in price if you find an item listed for less than you bought it for. This benefit is usually limited within a specified time period.

This is a benefit offered by some credit card issuers that offers repairs or replacements for eligible damaged, stolen, or sometimes lost items.

Rewards are benefits offered by some credit card issuers and given to customers based on the money they spend. Rewards are generally based on an amount or percentage of dollars spent using the card and may be redeemed for cash, travel, or shopping. Rewards cards often have a higher interest rate than non-rewards cards.

A secured credit card is backed by a refundable security deposit equal to your credit limit on the card. It’s a popular option for people with poor or no credit because it can help them build credit.

A sign-up bonus is an incentive that credit card issuers may offer to potential customers to encourage them to sign up for a new card. Bonuses may include free flights, hotel stays, or cash back.

A credit card billing statement is a periodic summary of all purchases and payments made using your credit card. It may be delivered in a paper or digital format, depending on your preference. It’s important to review your statement regularly in order to spot any errors.

A formal, legally binding document that details all of the rules and guidelines for using a credit card such as interest rates, fees, rewards, the grace period, and more.