A Comprehensive Glossary of Credit Card Points Terms

Hi all!

Getting into credit card points from scratch is no easy task, and learning the terminology is only the beginning of that journey. That’s where I hope to help! Obviously, I want to help throughout the whole process, but in this blog post, you’ll see a comprehensive glossary that serves as your ultimate guide to navigating the intricate language of credit card points. Let's learn the lexicon together!

• Very broad terms, like “Credit Card”, will not be found in the glossary.

• This glossary will only explain what a term is, and not any benefits, quirks, etc.

  • For example, CSR = Chase Sapphire Reserve. This glossary will not detail any benefits or fees of the card, just the simple definition/acronym.

If there are any terms you do not see, do let me know so I can add it, via comment, discord, or email! Without further ado, let’s learn the lexicon together!

2/30: A Chase credit card application rule that states you cannot open more than 2 Chase credit cards in 30 days. This includes personal and business cards.

5/24: Chase’s credit card application rule that states that one cannot have opened five or more personal credit cards (from any issuer) in the last 24 months.

Note: There are some data points of approvals despite being over 5/24, but mostly with pre-approval messages.

Annual Fee: The amount charged by the credit card company on a yearly basis for the privilege of using the card. Many premium cards with extensive perks may have higher annual fees. Also can be abbreviated to AF.

APR (Annual Percentage Rate): The annualized interest rate charged for borrowing on a credit card. It includes both the interest rate and any fees associated with the card.

Authorized User: A person who is entitled to use another person's credit card account to make purchases, but is not liable for paying the bill. Authorized users usually get a card of their own that is tied to the primary cardholder's account. Benefits of being an authorized user is that the card issuer reports the account's activity and history to the credit bureaus on the authorized user’s behalf.

Auto rental collision damage waiver: A credit card benefit on some cards that offers insurance coverage for collision damage when renting a car. Note that this benefit doesn't cover liability insurance, and most cards have exclusions and limitations.

There are two types of benefits here: primary and secondary. Secondary coverage means that one needs to file a claim with their own auto insurance policy for your personal vehicle before the credit card's coverage kicks in. For primary coverage, however, the credit card’s coverage kicks in immediately.

Available Credit: The amount of credit available for use. This is calculated by subtracting the current balance (and any pending transactions) from the credit limit.

Average Age of Accounts: Average age of all credit cards in one’s credit file. Closed cards will still remain on the credit report for 10 years, so this will still contribute to the AAoA.

Average Daily Balance: This is the balance on a card from each day in a statement period, divided by the number of days in the statement period. Card issuers use the Average Daily Balance to calculate how much interest is owed. Of course, pay off your balance in full by the due date to avoid interest!

Balance Transfer: The process of moving a credit card balance from one card to another, usually to take advantage of lower interest rates or promotional offers.

Bonus Category: Specific spending categories on a credit card that earn higher rewards or cash back rates. Common bonus categories include dining, travel, and groceries. This can also be referred to as “Multipliers”

Card Member: Sometimes also spelled “cardmember” and sometimes referred to as “card holder” or “cardholder”, this is the industry term for an individual that a card is issued to.

Card Member Agreement: The terms and conditions of a given card. Sharing this with the card member is a federal requirement. Also referred to as a “Card Holder Agreement”.

Cash Advance: A cash loan taken from a credit card. This can be done by withdrawing money from a credit card at an ATM, at the bank, or via check. This amount is limited and often different from the credit limit. Be aware that the APR for cash advances are often higher than APR for interest, and there are fees incurred.

Cash Back: A form of credit card rewards where a percentage of the purchase amount is returned to the cardholder in cash. This is often presented as a check, direct deposit, or a statement credit.

Cents per Point: A method of assessing the value of points when used for a certain redemption. The formula usually is some variation of: cash cost minus taxes & fees, divided by the number of points needed for the redemption. Also, this is where the name of the blog came from!

CF: Chase Freedom

CFF: Chase Freedom Flex

CFU: Chase Freedom Unlimited

Charge Card: A card with different payment terms than a credit card. Whereas credit cards can carry a balance from billing period to billing period, charge cards require that balances be paid off in full for each billing period. Charge cards also usually do not have a published credit limit.

CIC: Chase Ink Cash

CIP: Chase Ink Preferred

Note: This could also be the Ink Premier, but since the Chase Ink Premier does not earn Chase Ultimate Rewards Points, it is not commonly referenced when using the acronym.

CIU: Chase Ink Unlimited

Cobranded Card: A credit card sponsored by a specific partner (airline, hotel, store, etc.). Cobranded cards often provide perks when shopping with that specific partner.

Credit Bureau: An institution that calculates credit scores for an individual. The main credit bureaus in the US are Experian, Equifax, and TransUnion.

Credit Card Issuer: This is usually a financial institution that offers credit cards as a product. Major credit card issuers to note are American Express, Chase, Citi, Capital One, Discover, etc.

Credit Limit: The maximum amount a cardholder can charge on their credit card. It is determined by the credit card issuer based on the individual's creditworthiness.

Credit Utilization Ratio: One of the factors that go into calculating a credit score. Credit utilization ratio is calculated by dividing credit limit from the credit card balance. Lower credit utilization ratios are good for your credit score.

CSP: Chase Sapphire Preferred

CSR: Chase Sapphire Reserve

Dispute: When an unauthorized transaction is made on your card, or you disagree with a certain transaction made to your card, you can dispute the charge. This can lead to a credit for the disputed amount, among other things.

Elite Status: A higher level of membership or benefits within a loyalty program, often associated with travel rewards programs, providing exclusive perks to cardholders.

FICO: Fair Isaac Corporation: This is a credit scoring model that is considered when screening applicants for a credit card.

FHR: Fine Hotels + Resorts - This is an Amex platform for booking luxury/high-end hotel properties globally.

Hard Pull: A check that an issuer will do on an applicant for a credit card. Unlike a soft pull, hard pulls will ding your credit score temporarily. Too many hard pulls in a short amount of time will also negatively affect your credit score.

HUCA (HUCB): Hang up, call again (Hang up, call back)

Manufactured Spend (Manufactured Spending/MS): A method of earning rewards points by purchasing cash equivalents with a rewards-earning card. There can be fees associated with Manufactured Spend, but also at times the rewards can outweigh the fees. Be careful when engaging in MS.

Minimum Spend Requirement: The minimum amount a cardholder must spend within a specified time frame to qualify for a sign-up bonus or other promotional offer.

MR points: This refers to Amex’s transferable points, known as Membership Rewards points.

Multipliers: Specific spending categories on a credit card that earn higher rewards or cash back rates. Common bonus categories include dining, travel, and groceries. This can also be referred to as “Bonus Categories”

Reconsideration Line: A phone line typically offered by a card issuer. Calling this line offers a chance to persuade a representative to overturn a rejection or denied credit card application.

Statement Credit: A way for issuers to refund you money. When returning an item, or disputing a charge, or sometimes when earning rewards, issuers can credit money back to your account, deducting the amount from the card balance.

Transferable Points: Points that can be transferred to various airline or hotel loyalty programs, offering flexibility and potentially more significant value.

Travel Portal: An online platform provided by the credit card issuer where cardholders can redeem points for travel-related purchases like flights, hotels, and car rentals.

TY points: This refers to Citi’s transferable points, known as ThankYou points.

UR points: This refers to Chase’s transferable points, known as Ultimate Rewards points.

YMMV: Your mileage may vary