A credit card is a form of borrowing - it’s like having a loan for the amount that you spend. You’ll be required to make payments on your balance and the minimum payment is usually calculated by your total balance. You can compare credit cards in our Credit cards comparison table
A credit card is helpful for situations where you have to pay an unexpected sum of money - like when your car fails it’s MOT or when your boiler breaks and you need a new one in a hurry. If managed correctly, having a credit card can also help with your credit score.
A balance transfer is a transfer of the remaining balance on your credit card to another credit card. Most commonly, this is done to move your existing balance to a 0% balance transfer card.
If you’re approved for a credit card, you’ll usually get it within around a week. Application processes and times will vary with different credit card providers though so it’s always best to ask the provider you apply with for a time.
Usually when you’re using a credit card you’re borrowing money whereas using a prepaid card is using your own cash. When using a credit card, your provider will set a limit on your card meaning you can spend upto a maximum amount, and you’ll have to repay the amount you spend with interest.
The APR is the annual percentage rate which is the amount of interest that you will be charged on your credit card balance in a year. This will differ between credit card providers.
If you miss a payment on your credit card or are worried you won’t be able to make your next payment, it’s best to contact your credit card provider straight away. If you’re at all concerned about your financial situation we suggest contacting the Money Helper. They're free to call on 0800 011 3797 and if you're unable to call for any reason they also offer an online chat service. They are also contactable via Whatsapp messenger on +44 7701 342744.