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Credit Card Glossary - T

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T (tiered)
Tiered pricing is indicated by the letter "T" after the APR. With tiered pricing different levels of outstanding balances have different periodic rates. The rate shown is for the lowest of the balance tiers. Rate is based amount of outstanding balance, cumulative charges made or cardholder's credit and risk rating.
Teaser Rate
The introductory rate. Usually a temporary lower rate to encourage customers to switch credit cards. After the teaser rate is over, the charged rate increases to the indexed rate or the interest rate.
Ten-Year Treasury Constant Maturity
An index published by the Federal Reserve Board based on the average yield of a range of Treasury securities, all adjusted to the equivalent of a 10-year maturity. Yields on Treasury securities at constant maturity are determined by the U.S. Treasury from the daily yield curve. That is based on the closing market-bid yields on actively traded Treasury securities in the over-the-counter market.
The time to the maturity of a loan or deposit, expressed in months or years.
Total Expense Ratio
The percentage of monthly debt payments compared to total before-tax income.
Transaction Date
The purchase date of goods or services or the date of the cash advance.
Transaction Fees and Other Charges
As if annual fees aren't enough, credit card companies can charge a fee if you make a late payment, exceed your credit limit, or get a cash advance. Some even charge a monthly fee whether or not you use the card.
Treasury index
A table of yields being paid on government debt, used to determine interest-rate changes for adjustable-rate mortgages and other variable rate loans.
Truth in Lending Act
Federal law that protects consumers by requiring lenders to publish specific information so borrowers can compare cost and terms of credit offered by lenders. The facts lenders must publicize are: finance charges in dollars and as an annual percentage rate (apr); the length of the grace period, if any; annual fees; minimum payment required; and the company providing the credit line and the credit limit.
Two-Cycle Balance
Uses the account's last two months of activity. There are different types of two-cycle methods. This eliminates the grace period and the finance charges are usually higher. The interest on a balance is retroactive to when the purchases were posted to the account.