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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Section 75

Section 75 of the Consumer Credit Act refers to the protection all credit card customers have when they make purchases on their plastic.

If you buy something using your debit card or with cash and that item turns out to be faulty, broken, not as described or if it never arrives, you can only rely on the vendor to provide you with a refund.

However, under Section 75 your credit card provider is also liable to refund you if you used your card to make the purchase, which gives you an extra layer of protection when shopping online or in-store.

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Standing order

The most economical way to use your credit card is to pay the balance in full each month so you're not charged interest. However, even if you can't afford to do this it's important you pay at least the minimum repayment or you could damage your credit score.

If you don't think you'll be able to afford to clear your balance each month but want to pay as much as possible, you could work out a sum you know you can afford and set up a standing order for that amount to go to your lender.

That way, you have the peace of mind that every month you're making an in-road into clearing your debt – and you're not at risk of missing the minimum repayment.

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Statement

You will get a monthly statement from your lender either by post or online. Similar to a bank statement, this will detail every transaction made on your credit card.

If you don't think you'll be able to afford to clear your balance each month but want to pay as much as possible, you could work out a sum you know you can afford and set up a standing order for that amount to go to your lender.

You should take the time to carefully read through this and keep it for your records, as not only will it allow you to keep track of your borrowing but it could also highlight if any fraudulent activity has occurred on your card.

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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