Frequently Asked Questions

There are eight standard costs associated with credit cards - these can include:

• Annual fees
• Interest charges
• Late payment fees
• Foreign transaction fees
• Balance transfer fees
• Cash advance fees
• Over-the-limit fees
• Returned payment fees
  
  

Each credit card provider is different, so always check the terms and conditions of any credit card you plan to apply for. Some will charge you a yearly fee that will include perks and offers. All will charge you interest on balances at the end of any introductory interest-free period or grace period. And if you fail to make a monthly repayment on time, all will charge you interest and fees. You may be required to pay the balance in full too.

Not every credit card will offer rewards - always check before applying, especially if earning rewards is vital to you. Rewards credit cards may offer cashback on purchases (up to a certain limit or subject to the requirements of the card provider). They may also offer points that can be saved and converted into vouchers for purchases such as airplane tickets, hotels, and shopping. However, rewards credit cards can be more expensive due to higher interest rates, so it is always a good idea to pay off any balance in full every month.

A credit card grace period is the time between making a purchase using your credit card and the last date you can pay off that balance without being charged interest. Three important things to remember are that not every credit card provider offers a grace period (check the terms and conditions of your credit card), and grace periods might not apply if you don't pay off your monthly balance in full every month. Interest-free periods generally only apply to purchases. They do not generally apply to cash withdrawals or balance transfers and online gambling or purchasing foreign money or traveler’s cheques.

This is essentially interest rates plus fees charged over a year. APR (Annual Percentage Rate) is designed to give you an idea of how much interest you could pay, if you were to keep the debt for 12 months.

Representative APR rates are “representative” of what most customers are charged for a credit product. It is “representative” or “typical” of what 51% of customers will receive as a rate (or lower) from that credit card provider. This is another useful way to compare credit cards, but bear in mind you may not be offered the representative APR advertised.

Interest rates is basically the price you pay for borrowing money. For credit cards this is shown as a percentage and at a yearly rate. Interest rates vary depending on the provider, type of credit card you choose and your credit score. You will be able to get credit cards with lower interest rates and borrow larger amounts and if you have a good credit score.

This will depend on the provider, however it can take as little as 5 to 10 minutes to apply for a credit card. Waiting for a decision on your application can take longer - sometimes up to two weeks. If you are approved, may take 2 to 5 working days to receive your card in the post.

This is the window of time in which you can make purchases without the balance attracting interest. Once the purchase promotion period has ended, any further purchases should attract interest. Purchases completed within the promotional period should continue to be interest free until the end of the interest free period.