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

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Interest

You could view the interest you pay for your card as the fee you're charged for the convenience of borrowing.

Some cards come with low interest rates, some with high ones, and some charge no interest at all.

However, interest rates do usually change so make sure you check whether the one being offered with your card is for a limited period, when it will run out and what it will rise to, so you’re prepared.

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Interest-free period

Most credit cards don’t charge you any interest from the date you make a purchase to the date that your payment is due – provided that you repay the balance in full.

This is known as the interest-free period. Depending on when you make transactions in relation to your statement date, this can work out as long as around 56 days. If you don’t repay the balance on the card, the interest charged is usually backdated to the date of the transaction.

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Interest rate

– Your card provider will quote a monthly interest rate.

This is the rate you will be charged each month on the amount you have outstanding on the card.

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Introductory rate

Many credit card providers advertise competitive interest rates or rewards that last for an introductory period only.

Once this has run out, your interest may rise or your rewards may end. Check the date the deal runs out when you apply and factor this in when deciding which is the best card for you.

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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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