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.

You can check your eligibility with no impact to your score. Only once you decide to proceed with a specific finance option will a hard credit check be conducted, which may affect your credit score.

Please ensure that you can afford the repayments before taking out any form of credit. 

Not all providers offer a 0% interest deal. Terms and conditions apply. The duration of the 0% interest period may vary by provider. Credit is subject to approval. Promotional or introductory rates may be withdrawn if payments are missed.

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk