If you live in the United States, or anywhere in the Western world, there is a high chance that you have a credit card. A credit card is a financial tool that I describe as a two-edged sword. If you use it wisely, you will reap its benefits, but if you misuse it, on the other hand, it can lead to lots of pains.

Here are 10 credit card terminologies you need to know:

1. Annual Fee

2. Annual Percentage Rate

3. Balance TRansfer

4. Cash Advance

5. Grace Period

6. Minimum Payment

7. Late Payment

8. Credit Limit

9. Credit Utilization Rate

10. Reward Programs