Credit Card Center
for Students

Annual percentage rate (APR) Your APR is a standard calculation that permits you to compare the cost of credit among different lenders. It is a calculation of the actual yearly cost of funds over the term of a loan.

Billing cycle A "billing cycle" means the days covered by a Statement. Typically, a billing cycle will be 30 or 31 days, but can change from month to month. We tell you on your Statement the number of days in the billing cycle covered by the Statement as well as the Statement period end date (closing date) of that billing cycle. 

Credit history A record of all your borrowing and repayment activity. Your credit history includes a record of your on-time payments, how long your accounts have been open, and any negative marks, such as unpaid accounts that have gone to a collections agency.

Credit limit This is the maximum amount of credit we have established for your account. As part of your total credit limit, we have established a separate cash advance limit. We have no obligation to authorize any transaction that may put you over your credit limit or cash advance limit but may do so at our discretion. If we do authorize a transaction that will put you over your credit limit or cash advance limit, you will be responsible for paying those transactions. Exceeding your credit limit can lower your credit score. 

Credit score A three-digit number that summarizes how well you handle debt. The higher the number, the better. It’s important to point out that if you are just starting out financially, you may not have established enough of a credit history to have a credit score available.

Minimum payment This is the amount you must pay on your account by your due date. We will tell you your minimum payment each month on your statement. This amount may change from month to month. 

What is Your Credit Score?
Your credit score is a three-digit number that is based on detailed information from your credit history. The higher the number, the better. It’s important to point out that if you are just starting out financially, you may not have established enough of a credit history to have a credit score available. Various organizations provide different credit scores, but the most widely used is the FICO^® Score (which PNC cardholders can access at no charge). FICO® Scores range from 300 to 850 – scores of 670 to 739 are considered "good", scores of 740 to 799 are considered "very good" and scores of 800 or higher are considered "exceptional."

Why Does Your Credit Score Matter?
Your credit score can play an important role in your financial future. It can significantly impact things like whether you are able to get approved for a mortgage, and how much interest you pay for car loans, leases, home loans, etc. 

DO:

•  Pay your bill in full each month, if possible –  Paying your credit card bill in full each month can reduce the amount of interest you pay, or even eliminate interest charges altogether. 
  
  
• Create a spending budget – Having a clear picture of what your expenses are in relation to your monthly income, will help you establish responsible spending habits.
  
  
• Pick your payment due date – Pick a date that you’ll remember for added convenience, or one that aligns with when you get paid (if applicable).
  
  
• Take advantage of your credit card’s benefits – Many cardholders don’t realize that their credit cards include a host of valuable benefits that can help in everyday life.

DON’T:

•  Just pick any credit card – Consider things like reward types and APRs to figure out what credit card fits your life best.
  
  
• Only make the minimum payment – Paying only the minimum payment each month can be enticing, but you'll pay more interest and it will take you longer to pay your balances in full.
  
  
• Miss your payments – 35% of your FICO^® Score is determined by your payment history. Even if it means that you only pay the minimum payment for the month late, it's always a better idea than skipping a payment entirely. 
  
  
• Spend too much of your available credit limit – Try not to spend more than 30% of your available credit limit. Coming too close to your credit limit could negatively impact your credit score.