Glossary
What the words on our deal and card pages mean, in one line each.
Credit card basics
- Anniversary
- The yearly date tied to when you opened the card. The annual fee and many yearly perks renew then; some perks reset each January instead.
- Annual fee
- What a card charges each year to keep it open. Some cards waive it for the first year.
- APR
- The yearly interest rate on any balance you don't pay off in full by the due date.
- Balance transfer
- Moving debt from one card to another, often for a lower rate. There's usually a fee, often 3% to 5% of the amount.
- Bonus categories
- Types of spending, like dining or groceries, where a card earns extra points per dollar.
- Business card
- A card for business spending. Freelancers and sole proprietors can usually apply with their own name and Social Security number.
- Card-linked offer
- A deal you add to your card in the bank's app or website, like $10 back at a store. Spend as stated and the credit posts to your account.
- Charge card
- A card you're expected to pay in full every month. It has no preset spending limit, which doesn't mean unlimited.
- Employee card
- An extra card on a business account for someone who works for you. It's the business version of an authorized user.
- Foreign transaction fee
- An extra charge, often about 3%, on purchases made abroad or in another currency. Many travel cards don't charge it.
- Hard inquiry
- The credit check a bank runs when you apply. Each one can lower your credit score a little for a while.
- Intro APR
- A low or 0% interest rate for a set time after you open the card. After that, the regular APR applies.
- MCC (merchant category code)
- The code that tells your card what kind of business a store is. It decides whether a purchase counts in a bonus category.
- Public offer
- An offer anyone can get by applying on the bank's own page, unlike targeted, referral or in-flight offers.
- Referral bonus
- A bonus a cardholder earns when a friend they invite gets approved. The friend's own offer can differ from the public one.
- Spending requirement
- How much you must charge to a new card within a set time, often 3 months, to earn its welcome offer.
- Statement credit
- Money taken off your card bill, usually after a qualifying purchase. It lowers what you owe; it isn't a cash payout.
- Targeted offer
- An offer the bank sends only to some people. If it isn't in your account, app or mail, you can't get it.
- Welcome offer
- Bonus points, miles or cash a card gives new cardholders who spend a set amount within the first few months.
- Year one
- Our estimate of a card's first year: the welcome offer's value plus the perks you'd use, minus the annual fee.
Card rules and strategy
- 5/24
- Chase's unwritten rule: it usually declines you if you've opened 5 or more personal cards from any bank in the past 24 months. Each new card uses one of the 5 slots.
- Churning
- Opening cards or bank accounts to earn their bonuses, within each bank's rules on how often you can get one.
- Clawback
- When a bank takes back a bonus, for example because you closed the account or returned purchases too soon.
- Downgrade (card)
- A product change to a cheaper or no-fee card, often to avoid an annual fee without closing the account.
- Keeper
- A card worth keeping year after year because its perks or earning are worth more to you than its annual fee.
- NLL (no lifetime language)
- An Amex offer without the once-per-lifetime limit, so you may be able to earn that card's bonus again.
- Once per lifetime
- Amex terms that limit a card's welcome offer to once per person, ever.
- Pop-up
- An Amex message during your application saying you won't get the welcome offer. You can stop there instead of finishing the application.
- Product change
- Switching your card to another card from the same bank without a new application. You keep the account's history but usually get no welcome offer.
- Retention offer
- A bonus a bank may offer when you call to cancel or ask about your annual fee, to keep you as a customer.
- Trifecta
- Three cards from one bank used together: each earns extra on different spending, and the points pool in one account.
- Velocity limits
- A bank's limit on how many new cards it will approve for you in a short time.
Points and miles
- Atmos Rewards
- Alaska Airlines' and Hawaiian Airlines' shared loyalty program (formerly Alaska's Mileage Plan).
- Avios
- The points used by British Airways, Iberia, Aer Lingus, Qatar Airways and a few other airlines.
- Award flight or stay
- A flight or hotel stay paid with points or miles instead of cash.
- Bilt Points
- Bilt's rewards points, which you can move to airline and hotel partners.
- Capital One miles
- Capital One's rewards. You can use them at 1 cent each to cover travel purchases, or move them to airline and hotel partners.
- Cents per point
- What one point is worth when you use it. At 1.5 cents per point, 10,000 points are worth $150.
- Membership Rewards
- Points that American Express cards earn. You can use them for travel or move them to airline and hotel partners.
- Points and miles
- Rewards you earn on spending. They aren't cash: what they're worth depends on how you use them.
- Shopping portal
- A website you click through before shopping online to earn extra points, miles or cash back.
- ThankYou Points
- Citi's points. Some Citi cards, like Strata Premier, can move them to airline and hotel partners.
- Transfer bonus
- A limited-time deal that adds extra miles or points when you move bank points to a partner, like 1,000 becoming 1,300.
- Transfer partners
- Airlines and hotels you can move bank points to, often one to one. Booked well, points can be worth more there than as cash back.
- Travel portal
- A bank's own travel booking site, where you can book flights and hotels with your points or card.
- Ultimate Rewards
- Chase's points. To move them to airline and hotel partners, you need a Sapphire Preferred, Sapphire Reserve or Ink Business Preferred.
Travel perks and status
- Airport lounge
- A private airport space with seating, food and drinks. Delta Sky Club, American's Admirals Club, United Club and Amex's Centurion are lounge brands.
- CLEAR
- A paid service that verifies your identity with your eyes or face, so you skip the ID line at airport security.
- Companion certificate
- A card perk, often yearly, that lets a second person join your trip for a low set price or just taxes and fees.
- Companion Pass
- Southwest's perk that lets one person you choose fly with you for just taxes and fees, once you earn enough qualifying points or flights.
- Economy Plus
- United's economy seats with extra legroom.
- Elite status
- A frequent-traveler level with an airline or hotel that brings perks like upgrades, free bags or late checkout.
- Fine Hotels + Resorts
- Amex's luxury hotel program, booked through Amex Travel, with extras like daily breakfast for two and a property credit.
- Free night award
- A hotel card perk good for one night at a participating hotel up to a set level, often given each year after you renew.
- Global Entry
- A US program for faster customs when you return from abroad. It includes TSA PreCheck. Many cards pay the application fee.
- Loyalty Points
- What American Airlines counts toward AAdvantage elite status. You earn them on flights, card spending and partner purchases.
- Medallion status
- Delta's elite status: Silver, Gold, Platinum and Diamond Medallion.
- Mosaic
- JetBlue's elite status.
- MQD
- Medallion Qualification Dollars: what Delta counts toward Medallion elite status. Some Delta cards add MQDs as a bonus or as you spend.
- NEXUS
- A US-Canada trusted traveler program that includes Global Entry and TSA PreCheck.
- PQP
- Premier qualifying points: what United counts toward Premier elite status. Some United cards add PQP as a bonus or as you spend.
- Premier Access
- United's priority lanes for check-in, security and boarding.
- Priority Pass
- A membership that gets you into a worldwide network of airport lounges. Many premium cards include it.
- Resy
- A restaurant reservation app owned by American Express. Some Amex cards give credits for dining at Resy restaurants.
- The Edit
- Chase's luxury hotel program for Sapphire Reserve cardholders, with extras like daily breakfast and a property credit.
- The Hotel Collection
- Amex's hotel program for stays of 2 nights or more, with a property credit and a room upgrade when available.
- TSA PreCheck
- Faster US airport security lines where you can usually keep your shoes on and your laptop in your bag. Many cards pay the fee.
Bank bonuses
- 1099
- A tax form a bank or broker sends to report income such as a bonus. Bank and brokerage bonuses usually count as taxable income.
- ACH transfer
- An electronic transfer between bank accounts, like moving money from your checking at one bank to another.
- APY
- Annual percentage yield: the interest a savings account pays over a year, counting interest on interest.
- ChexSystems
- A report on your banking history that many banks check when you open an account. Opening many accounts quickly can lead to denials.
- Credit union
- A member-owned, not-for-profit bank. You join first, often based on where you live or work, or through a partner group.
- Direct deposit
- Pay sent electronically into your account by an employer, payroll service or government agency. Many bank bonuses require it.
- Early closure fee
- A fee, or the loss of your bonus, if you close the account within a set time after opening, often 90 to 180 days.
- Holding period
- How long the money, or the account, must stay in place to earn the bonus or keep it.
- Minimum balance
- The least you must keep in the account, every day or on average, depending on the bank's rule.
- Monthly fee
- What a bank charges each month to keep the account open. It's often waived if you meet conditions like a minimum balance or direct deposits.
- New money
- Money that isn't already at that bank. Moving money between your own accounts at the same bank usually doesn't count.
- Promo code
- A code you enter when you apply or check out to get the deal. Some offer links fill it in for you.
- Regional bank
- A bank that serves only certain states. Its offers are usually open only to people in those states.
- Waivable
- The bank drops the fee if you meet its conditions, such as keeping a minimum balance or getting direct deposits.
Brokerage bonuses
- ACAT transfer
- The standard way to move investments from one brokerage to another without selling them first.
- CMA
- Cash Management Account: Merrill's main brokerage account, for investing and holding cash.
- Free stock
- A share a broker gives you for opening or funding an account. Its value is often random within a stated range.
- IRA
- Individual retirement account: a tax-advantaged account for retirement savings, with yearly limits on how much you can add.
- Margin
- Borrowing from your broker to invest, using your investments as collateral. Losses can be bigger than what you put in.
- Net new assets
- The cash or investments you bring in from outside the firm, minus anything you move out, during the offer window.
- Rollover
- Moving money from a 401(k) or another IRA into an IRA without owing tax, if it's done correctly.
- Roth IRA
- An IRA funded with money you've already paid tax on. Qualified withdrawals in retirement are tax-free.
- Self-directed
- An investing account where you choose and trade investments yourself, with no adviser.
- SEP IRA
- A retirement account for self-employed people and small business owners, funded by the business.
Deals and freebies
- BOGO
- Buy one, get one: buy one item and get a second free or at a discount.
- Participating locations
- Only the locations that chose to join the deal. Check with yours before you go.
- Stacking
- Using two deals on the same purchase, like a card-linked offer plus the store's own sale.
- While supplies last
- The deal can end early if the store runs out.