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If you already have existing credit card debt on one or more cards and want to pay it off at a lower cost, then you should consider a balance transfer credit card. These cards allow you to move your debt from your current card(s) to a new one and pay it off at 0% interest for up to 35 months, though most charge a fee to transfer your balance.

If you're planning to make a large purchase such as furniture for your home and can't afford to pay for it in one go, then you should consider a 0% purchase card, or a 0% money transfer card. These offer long interest free periods so you can split the cost into monthly instalments without paying any interest. Make sure to pay at least the minimum payment every month, and pay off the whole balance before the 0% interest period ends, otherwise you'll be charged interest on the remaining balance.

If you have never taken out credit before, or have a low credit score that you want to improve, then you could consider a credit building credit card. These cards are easier to get approved for and typically charge higher interest rates and have low credit limits. They are best used for everyday spending, with the balance being paid off in full every month. If you keep that up for six months or more, you should see your credit score get a boost.

If you want to earn rewards on your spending, there are different kinds of rewards credit cards available depending on what you want. Some cards offer air miles or points that can go towards lowering the cost of your air travel. Other cards offer points that you can collect to earn discounts at the stores you like to shop from. With cashback cards you'll earn cash that your provider may give you directly, either on a monthly or annual basis.

Be aware that rewards cards charge high interest rates and often come with annual fees. So they only make financial sense if you typically pay off your full balance every month, and you earn more in rewards than you pay for the annual fee of the card.

The fixed cost associated with maintaining certain credit card accounts. It appears as a single lump sum on your statement once a year. This is a standard account charge and is separate from interest payments or transaction fees.

APR stands for “Annual Percentage Rate” and is the total cost of borrowing over 12 months. If you pay your balance in full and on time, you will not pay interest.

The total figure outstanding on your account at any given time. It combines your borrowing — used for purchases or transfers — with any account fees or interest charges. If this amount is not paid off in full, it is carried over as debt.

Withdrawing funds from an ATM using your credit card. This attracts a specific fee and daily interest charged from the moment you take the money out. Be aware that providers often apply these same expensive rules to "cash-like" transactions — such as buying foreign currency, stocks, or placing bets — categorising them exactly the same as an ATM withdrawal.

Your credit limit is the amount you can borrow on your credit card at any one time. If you exceed this amount, you can be charged a fee — typically £12 — and it can leave a mark on your credit report. You won’t usually find out your credit limit until the end of an application process, although you can ask your provider to increase — or decrease — your credit limit at any time.

Credit limits are set based on your credit history and your earnings. Once you've reached your credit limit, you need to make a payment to bring down your balance before you can use the card again. Find out more in our guide to credit limits.

Your credit report is your history of borrowing and paying bills over the past six years. Lenders send this information to one or more of the three credit reference agencies, which compile reports on UK residents.

Before deciding whether to let someone borrow, lenders check your report from one or more of the agencies. You can request a copy of your credit reports to ensure there are no mistakes on your file, request changes if you spot one and add notes explaining any missed payments.

Your credit score is calculated based on your credit history. Each credit reference agency has its own method of calculating this. Your credit score will go up for things like making payments on time and down for things like being late or defaulting on a loan. Typically, the higher your score, the more likely you are to be offered a lower rate of interest or higher credit limit.

There is no absolute pass or fail mark attached to a credit score, with each lender making its own decision on what it considers acceptable.

This occurs when the relationship between you and the lender has broken down due to unpaid debt. It typically happens after 3-6 months of missed payments. You will receive a warning letter 14 days prior; if you do not pay, the account is defaulted. This blocks you from using the card and significantly damages your credit rating for six years.

An automated payment method where you authorise a company to collect money from your bank account. It is the most common way to pay credit card bills because it ensures you never miss a due date. You can set it up to collect the minimum payment, a fixed amount, or the full balance every month.

The minimum standards you need to satisfy before a provider will consider your application. This typically involves your age, employment status, and salary. You should check these carefully before applying to avoid unnecessary rejections, though meeting them does not automatically guarantee you will get the card.

The extra cost added to purchases made in a foreign currency. Standard credit cards typically add a fee of around 2.75% to 2.99% to the exchange rate set by Visa, Mastercard, or Amex. Some specialist travel credit cards waive these fees, though you should still avoid withdrawing cash as this usually attracts interest immediately.

Interest-free credit cards allow you to either transfer a balance, make purchases or transfer cash to a current account without paying any interest on your balance for a set period. However, you must keep making at least the minimum monthly repayment during this time.

Once the 0% deal is over, you will be charged interest on any remaining debt at your standard APR. With balance transfers and money transfers, you will usually have to pay a transfer fee. 

This is the smallest sum accepted by your provider to keep your account active without penalties. It is calculated based on a small percentage of your total balance (or a fixed sum like £5 if the balance is low). While paying the minimum stops you from defaulting, it does not clear your debt efficiently. We recommend paying as much as you can afford to minimise interest costs.

A fee charged by providers for the service of moving debt. This is added to your account balance automatically when the transfer goes through. Fees typically range from 1% to 3.5% for balance transfers, but you should expect to pay slightly more — usually between 3% and 5% — for money transfers.

The annual percentage rate (APR) is the interest rate at which you will borrow money on your credit card. It's typically stated as a yearly interest rate and includes any fees and costs associated with the card. In most cases, you can avoid paying interest by clearing your credit card balance each month.

The specific rate and limit you are offered depend on your credit score and financial circumstances. The representative APR you see advertised is the rate offered to at least 51% of successful applicants; however, if you have a lower credit score, you may be offered a higher rate.

Similarly, your credit limit is personal to you; it is calculated based on your income and how much debt you already have. You will typically find out your exact offer after a successful eligibility check or application.

In the UK, most credit cards arrive within 7 to 10 working days after your application is approved. For security reasons, your PIN will be sent separately and usually arrives a few days before or after the card. Some providers may grant you instant access to a digital version of your card via their app while you wait for the physical one to arrive.

Unlike joint current accounts, there is no such thing as joint account for credit cards. What you can do is add an additional card holder to your card, such a partner, child or parent. This means that the additional card holder will have their own separate card, but you will be responsible for any debt accumulated on that card.

Yes. Most cards have a 14-day cooling off period that starts from the day you receive the card. If you change your mind about the card during that time, you can return it to the provider. While there is no penalty fee, you do have to pay off any balance you may have accrued on the card within 30 days.

If your credit card application is rejected, avoid applying right away with a different provider. The best thing to do is to wait at least six months before you apply again.

But if you urgently need access to credit, you could opt for a credit card for bad credit, which will have more lenient eligibility requirements.

If you miss a repayment on your credit card, you're most likely going to be charged a penalty and lose any introductory benefits, such as an interest free offer. It will also go on your credit report as a negative mark and hurt your credit score.

You can check your credit score by using a credit reference agency. These are companies that collect information about your credit behaviour to determine your credit score. Experian, Equifax and Transunion are the three main credit agencies in the UK. Read more about it in our guide on how to check your credit rating