Credit Card Glossary

Letter L

Late Payment Fee

If a cardholder misses their minimum payment by the due date, a late fee is assessed to the account. In additional to this charge for being late, when late payments are made to a credit card account the maximum default APR may be triggered. Even worse, if such an offense happens during a time period where the account is awarded a 0% introductory term, the interest free rate may be stripped.

Layaway

The practice of making regular installment payments on an item, typically in a store. When the consumer has fully paid off the item, they may go pick the goods up in the store and take it home with them.

LIBOR Rate

The benchmark rate tied to few credit cards and other loans. This rate is less applicable in the United States as we use the prime rate for most variable rate credit cards. Libor is an acronym for London Interbank Offered Rate and is the rate at which banks lend funds to each other in the London interbank market.

Line of Credit

The amount of money a cardholder or consumer may borrow on an active account. Credit cards are typically unsecured lines of credit but in some cases they are secured for particular bad credit offers.

Linked Transfer Account

This is a term used to describe two counts that are joined typically to be used for overdraft protection. Usually a money market or savings account will be linked to a checking account to protect the checking from overdraft. If the funds are not available in the checking for draws against it, the linked account will cover them if enough money is in them.

Loyalty Program

An attribute of credit cards that entice customers to either apply or use them. Examples of loyalty programs are usually travel rewards offers for a specific brand, points cards, or any other specific types of rewards card. As an added perk there are usually bonus structures available upon account opening or during promotional periods to make them even more attractive.