How Do Credit Cards Work?

A credit card can help you to spread the cost of a big purchase, build your credit score, or collect rewards for everyday spending. Essentially, you’ll be borrowing money from a credit provider to buy something, which you’ll pay back to them at a later date. Your credit card provider will give you a set credit allowance once you are approved, and set out the terms of agreement. They will send you a credit card statement every month with your total balance. If you pay your credit card bill in full every month, you can avoid paying any interest. If you make a partial payment, your outstanding balance will be added to your next statement, including interest or extra charges.

How Do I Choose a Credit Card?

Choosing the right credit card can be a real challenge. It’s important to consider why and if you need a credit card before applying for one. Each card offers different benefits, and there is no one-size-fits-all, so it’s important to shop around (this is where we come in!). We work with several trusted providers who offer many types of credit cards according to your personal circumstances. The exact rate and limit that you could be offered will depend on your financial situation.