What is an account?

It's an arrangement you have with a credit card company. The company agrees to provide money for you to use for goods and services up to a certain limit. The credit card Company decides on the limit.

You get a monthly statement listing all the purchases, cash withdrawals and payments you have made with your card. The statement shows the smallest amount you can repay for that month (your minimum repayment) and the date that the company expects the payment. You can:

• pay the full amount shown on your statement
• pay a smaller amount, as long as this is not less than the minimum repayment
• pay only the minimum repayment

Can anyone open a credit card account?

Anyone can apply - but not everyone is accepted. The final decision rests with the credit card Company.

How do I open a credit card account?

To open an account you need to complete an application form.

The Company will want too know your personal details and how much you earn.

Can a company refuse an application?

Yes

top

Which card?

There are two main credit card payment schemes in the world - MasterCard and Visa. Most places take both types of card, but some may take just one.

Most banks, many businesses, some charities and lots of organisations offer their own Visa or Mastercard credit cards.

Many high street stores offer their own store credit cards.

Consider

• What you need the card for.
• · The best deal available (look at fees and interest rates especially the APR - See Credit Card Costs)

• Is there a membership fee?
• Is there an annual fee?
• What are the interest rates?
• What is the APR (annual interest rate?)
• What are the costs for withdrawing money?
• Do you have a payment protection plan? How much does it cost and what can it do for me?
• What happens if I lose my card or have it stolen? Do I have to pay for any items bought with the card?
• How much credit am I allowed?
• What happens if I run into problems with money?

Midland Bank: Credit Cards to help you budget
http://www.midlandbank.co.uk/choosingtherightcards/nojava/

Barclaycard
http://www.barclaycard.co.uk/

(See also Resources: Banks)

top