Ocean’s credit card jargon-buster

There’s so much to consider when taking out a credit card, from what you can afford and what type of card is best for your needs to how to go about applying. However, the sheer amount of technical terminology you might have come across when researching credit cards may be holding you up or even putting you off.

Luckily, we’re here to help. Read our simple credit card jargon-buster and the subject should hopefully become a lot clearer.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
APR

Know if you're accepted before you apply with QuickCheck

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Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender

Annual Fees

Some, but not all, credit card providers charge users a yearly fee for using their card and service. If the card you’re interested in includes this fee, factor it in when you’re working out whether it makes sense for you.

For example, some cashback cards (see below) have fees, but if you use the card a lot (and repay in full) you may decide that you will earn far more in cashback than the cost of the fee.

Not everyone is accepted for a credit card. Different lenders have different criteria they look for in their borrowers. For example, a lender who offers a credit card with a £10,000 limit and multiple rewards is unlikely to accept a borrower on a low income and with a limited credit history.

And if you have a very poor credit score, you may not be accepted for a credit card at all.

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APR

Standing for annual percentage rate, the APR is a way of expressing the annual cost of borrowing money on a credit card.

This includes the interest, frequency of repayments and any additional fees you have to pay.

All credit card providers must include the APR in their product promotions. This makes it really easy for you to compare what’s out there and ensure you apply for the best deal for you.

Be aware that your credit history (see below) and the lender’s criteria (see below) will help determine which card you’re accepted for, so you may not always qualify for the best APR out there.

And as well as using the APR to determine which card to apply for, there may be other benefits offered by the cards you’re looking at, including rewards (see below).

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Know if you're accepted before you apply with QuickCheck

  • Get credit - up to £1,500
  • QuickCheck won’t affect your credit rating
  • Get a fast response in 60 seconds
Check Now 34.9% APR Representative (variable)
Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender
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jargon-buster