A-Z of credit cards
Annual Fee
Most credit card companies no longer charge an annual fee, but it's still worth looking out for just in case.
Annual percentage rate (APR)
Introduced with the Consumer Credit Act of 1974, this enables a clear comparison of interest payments on borrowing to be made. It takes into account any compulsory charges that might be otherwise hidden and must be displayed very clearly so that comparisons are simpler.
Balance transfer
You may often transfer any outstanding balance from other credit or store cards and lower your bills by paying 0% interest for up to 18 months.
Cash advance
If you draw down cash using your credit card, this is known as a cash advance and often attracts interest charges from the moment you take the advance.
Credit Score
Most lenders now use a system called credit scoring which gives a numerical value to a whole range of items of information. That information might come form your credit report or from information you provide as part of your application. Lenders use different scores depending on their policy and will usually use a combination of scores and policy rules to decide whether to offer you credit and, in many cases, what to charge for it. You can get an idea of how the information on your credit report might impact on your score by accessing your score through CreditExpert.
Introductory rate
Credit card providers often offer introductory rates of interest to new customers. This can be 0% for balance transfers from other credit cards and can be for as long as 18 months. Compare 0% balance transfer credit cards now!
Minimum payment
This is usually a small percentage of the outstanding balance of your credit card and you must pay this each month to keep within the terms of your card.
Compare credit cards now with LowerMyBills!
Experian® - the company behind LowerMyBills – also provides CreditExpert, which gives you access to your credit report and score enabling you to see what lenders see about you when they make a decision about which financial products or services are available to you.
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