GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Zero Balance


Synonyms:0 balance, no balance, nothing owing, paid off
Filed Under: financial-banking
Tags: banking
 

Definition of zero balance

zero balance
1. When the outstanding balance on a credit card is paid and no new charges are incurred during the billing cycle, the card holder's monthly statement shows a zero balance. This means nothing is left owing to the credit card company.

Related Terms and Acronyms:

  • adjusted balance   A method used by some card issuers in which they subtract all payments made during the month, then add the finance charges.
  • balance (bal.)   The amount of money in your account.
  • credit card (CC)   A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
      ➥  A payment card that gives customers access to a revolving line of credit.
  • grace period   If the credit card user does not carry a balance, the grace period is the interest-free time a lender allows between the transaction date and the billing date. The standard grace period is usually between 20 and 30 days. If there is no grace period, finance charges will accrue the moment a purchase is made with the credit card. People who carry a balance on their credit cards have no grace period.
  • previous balance   Some credit card issuers base finance charges on the amount owed by the account holder at the end of the previous billing cycle.
  • reconveyance   The transfer of title to the borrower after a mortgage has been paid fully.
  • secured credit card   A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.
  • zero balance transfer (ZBT)   In order to get your business, banks will offer a zero interest rate credit card for a limited when you transfer over your balance.

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Mortgage Product Type Inquiries
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