UK credit cards - FAQs

1. How is APR calculated on credit cards?
   
2. How do I know what my credit rating is?
   
3. I have had credit problems in the past - can I still get a credit card?
   
4. Do the credit cards on this site offer payment protection?
   
5. Can I get a decision online?
   
6. Can I have an additional cardholder?
   
7. Can I increase my credit limit?
   
8. What is a secured credit card?
   
9. What do I do if I lose my card or if it's been stolen?
   

The Annual Percentage Rate of charge (APR) provides consumers with a valuable tool to assess and compare the total charges involved in different offers of credit, before deciding whether to enter into an agreement.

It is the sum of the interest payable on the credit and other charges associated with obtaining credit, such as an arrangement fee, expressed as an annual rate of charge.

How do I know what my credit rating is?

Credit Checks are sometimes referred to as credit reports or credit scores. These are files that are held on individuals. Credit card companies use credit checks when they are making decisions on whether or not you are creditworthy.

A credit report will tell you whether there are any county court judgements against you, your payment performance (whether you have missed payments or are in arrears), details of previous searches done on you and much more.

There are many different companies who will give you a detailed credit report. You can get a free online credit report.

I have had credit problems in the past - can I still get a credit card?

Yes. If you have had credit problems such as ccjs or arrears there are still companies who will look upon your application sympathetically. They may not give you a large credit limit to start with, but over time this will increase providing you manage your account correctly and help you rebuild your credit rating.

Do the credit cards on this site offer payment protection?

Cardholder payment protection will take care of your minimum monthly repayments for up to 12 months if illness or unemployment means you can't. Charges vary dependent upon credit card provider, but typically it costs just 70p for every £100 of your outstanding balance.

So, if your outstanding balance is £300 you'll pay £2.10. If you owe nothing, you pay nothing. This means you only pay for protection as you need it.

You should check on the sites of each credit card provider to find out more about payment protection - use the links below

Can I get a decision online?

Most of the companies listed on this site can give you an instant decision online. After that you simply sign the application form sent to you by post.

Can I have an additional cardholder?

Each credit card company will have it's own rules regarding this but usually it is no problem for you to add an additional cardholder onto your account - eg. spouse or partner.

Can I increase my credit limit?

Once you have been approved for your credit card you will be given a credit limit. This is usually dependent upon your individual circumstances and credit history. After using your card and making monthly repayments on time for a few months most companies will then consider granting you a higher credit limit.

What is a secured credit card?

Normally a credit card is a means by which the credit card company effectively lends you the money to make purchases. You then repay the money at a later date - this might be in full at the end of the month or a little bit each month.

Because there is a lending element the credit card company will carry out credit checks to make sure you can repay the money they are lending to you. But what if you don't have a good credit history and cannot get a normal credit card?

A secured credit card relies upon you making a deposit initially with the credit card issuer. This guarantees you cannot default on the repayments. If you run this card succesfully you may be offered a normal card at a later date by the issuing company.

You can find details about secured credit cards at Mysearch

What do I do if I lose my card or if it's been stolen?

If you lose your credit card or realize it's been stolen, immediately call the credit card issuer. Many companies have freephone numbers and 24-hour service to deal with such emergencies.

By law, once you report the loss or theft, you have no further responsibility for unauthorized charges.

The company should immediately put a block on your file to ensure it cannot be used again.