The first bank to offer credit card services was Bank of America. They began offering the BankAmericard in 1959, which was renamed Visa in 1976.
Other major bank cards followed, such as MasterCard, formerly known as Master Charge. Many smaller banks began partnering with large national or international banks to offer credit cards on a regional or local basis.
Many credit card companies charge an annual fee. This is a flat, yearly charge similar to a membership fee.
A finance charge is the dollar amount you pay to use credit. This includes interest charges, cash-advance fees, and other charges. Cash advances generally result in a higher interest rate.
The grace period is the time period in which you can pay your credit card bill without paying a finance charge. This period is usually about 25 days and only applies if you pay off your balance each month.
The annual percentage rate (APR) is the yearly percentage rate of the finance charge. Interests rates change over time. Some plans offer fixed interest rates and others offer variable rates.
A fixed rate is a fixed annual percentage rate of the finance charge, and a variable rate is a prime rate with an added percentage.
Some cards also offer introductory rates, which usually last for about six months before converting to a normal fixed or variable rate.