When you take out a credit card there are a number of specific terms that we use to refer to the interest rates, fees and charges on your credit card account. This guide is intended to help you if you're unsure about any of the terms we use we and would like to get a better understanding.
There are three types of rates that apply on credit cards:
Credit card fees can vary. You should refer to your credit card terms and conditions for details.
These are the most common types of credit card fees:
A default charge of £12 may be applied to your credit card account. You will be notified of any charges due to be applied to your account on your monthly statement.
These are the most common default charge types:
What does APR mean?
APR stands for 'Annual Percentage Rate' and is a figure that includes all fees, charges and interest rates associated with your credit card. APR is a representative figure and it allows you to quickly compare credit cards.
What does purchase rate mean?
When you use your credit card to buy things, you will be charged interest on your purchases (outside of any introductory offer periods). If you pay off the outstanding balance of your credit card each month, you would not be charged purchase rate interest.
What is a credit limit?
Your credit limit is simply the maximum amount of money available for you to spend on your credit card. Your credit limit will be based on your current circumstances when you apply for the credit card account. You must not go over this limit.
What is a cash advance?
A cash advance includes; withdrawing cash from a cash machine, buying non-sterling currency and gambling. Interest on cash is charged daily from the date of the withdrawal, whether you pay the balance in full or not. Fees and interest rates apply.
What is a money transfer?
A money transfer lets you transfer money from your credit card to any of your own UK current accounts. You can benefit from a promotional interest rate on the transfers you make, but a transfer fee may apply. It will form part of your credit card balance and is subject to repayments as part of your monthly statement balance.
If you’re struggling to make payments on your credit card, please contact us.
We have trained advisors who will be able to offer you help and guidance on how to pay off your credit card debt. We can discuss payment options with you and may be able to negotiate an agreement which will reflect what you can afford to pay based on your personal circumstances.
Getting in touch with us:
We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.
To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.