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Please find below some commonly used terms
Annual Fees
An annual fee maybe chargable for some card issuers this
will depend on the issuer and you should be told about this
before you have accepted the account.
Annual Percentage Rate
APR is the way that credit card issuers charge you interest
and this is expressed as a yearly rate. The issuer will inform
you on the APR rate before you have accepted the account.
The APR will tell you the amount of interest that you would
pay per year without making any payments although payments
sill need to be made.
Balance
The balance is the amount of money that you have spent
on your your credit card this will include any fees, interest
and purchases you have made.
Balance Transfer
If you have more than one credit card then you may be
able to transfer the balance from one credit card to another
you may also be able to take advantage of special interest
rates for transfering a balance.
For information about card issuers with special rates see
comparing credit cards
Cash Advance
Some credit cards may give you the option for cash advance,
you can take out cash from your credit card account. The amount
of interest that you pay on taking cash out is typically higher
than for purchases and usually is charged from the day you
take out the cash. Most credit card issuers also charge a
small fee for this service which is usually around £1.50.
Credit Referencing Agencies
Most if not all credit card issuers now use a credit reference
agency to help them decide on whether you will be accepted
for a credit card. Information such as loans and credit cards
are stored on here if for example you had no credit history
then you may find no informaion is stored and you may be declined
for a credit card. We suggest having a look at our Rebuild your
credit rating cards.
You are able to obtain a copy of your credit file by contacting
Experian
who is a credit reference agency.
Credit Limit
Credit Limit is the amount of money that you are allowed
to charge to your credit card if your balance goes over this
amount there are usually some charges of around £20.
Your credit limit is usually reviewed around every 6 months
and the credit issuer can increase or decrease this limit.
you are usually allowed to apply for a increase but it is
up to the credit card issuer whether this is done, you are
also able to reduce your credit limit if required.
Introductory APR
Many credit card issuers nowadays offer special introductory
rates for a specified period of time (usually around 6 months)
so it may be benificial for you to change your credit cards
sometimes, so it is always worth comparing
credit cards that are available.
Minimum Payment
The minimum payment is the minimum amount of money which
you need to pay to your account each month.
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