What credit cards can I apply for?
If you want to know what credit cards you can apply for, or what credit card deals are available, you could use a comparison website to tell you which ones you are eligible for. What’s available will really depend on your credit status and what you want to use the card for. Many lenders also offer a pre-application eligibility checker, meaning you can check your eligibility before completing a full application to see if you're likely to be approved. This doesn't impact your credit score - however a full application does require a full credit check which leaves a footprint on your credit file. Comparison sites also offer you insights into what the interest charges and representative APR is amongst different providers.
What are the advantages of a credit card?
There are pros and cons to most things - whether credit cards are beneficial to your circumstances or not will depend on how you use it and if you have good repayment behaviour. Positively, certain credit cards offer an interest-free period to make purchases, some will offer fee-free cash withdrawals, others will offer spending abroad without any additional fees. Then there is the added protection on purchases which comes from the Section 75 law (more on that below). Remember, good repayment behaviour can also help you to build a good credit history.
Conversely, there can be a few cons to credit cards if you don’t establish good habits from the off. Spending to your limit and only ever making the minimum repayment is not the best habit to get into as it means you will always be carrying debt. If you open several cards and are not paying them off, then it means you are expanding your debts. Some cards also come with additional costs - for example annual fees, so always do your research to establish what card best serves your individual circumstances.
When do credit cards charge interest?
If you pay off your balance in full every month by your payment due date, plus any transaction charges that your credit card provider may charge you, then you won’t get charged any interest at all.
However, if you don’t pay off your bill in full by the payment due date or just make the minimum payment then you will be charged interest on the balance from the date the transaction shows on your account. Credit card purchases won’t always appear on your account on the day you make them. You should regularly check your credit card transactions to see what is being applied and when. (This is also a good idea from the point of view of making sure there are no fraudulent transactions on your account). Checking your credit card transactions is usually possible via an app or by logging into your online account.
What can I get with the 118 118 Money Credit Card?
If your application for a 118 118 Money Credit Card is successful, you'll know exactly what you get. A simple flat interest rate. A guaranteed credit limit. No annual or other fees, and a representative APR (variable).
If you're thinking of applying for one of our cards, you could use our eligibility checker. This will let you know if you're likely to be approved, and this doesn't impact your credit rating.
So whether you're looking at balance transfers or an interest-free period on cash and purchases, the 118 118 Money credit card has you covered.
If I’ve got bad credit, can I get a credit card?
There are credit cards out there for people with ‘bad’ or ‘poor’ credit. If you’ve never had any credit before, have had financial difficulties or even been a victim of fraud, then you could be seen as having poor credit. A number of lenders may consider giving you a credit card for bad credit.
Can credit cards help improve my credit score?
Credit cards can only help you build your credit score if you use them responsibly. Credit cards which are designed to help to build credit– you need to make your payments on time and should always aim to pay more than the minimum payment. If possible, also pay your balance in full each month.
What is the extra protection I get with a credit card?
Credit card purchases over £100 are protected at no cost to you thanks to the Consumer Credit Act 1974, Section 75 law. This means if there is an issue with good or services you buy, you could get your money back, provided that Section 75 applies to your credit card agreement and the purchase in question. According to the law, if you buy anything on your credit card costing between £100.01 and not more than £30,000, then both the seller of the item and your credit card provider may both be equally liable if something goes wrong with the purchase.