Choosing and applying for a credit card

 This page will tell you what to look for when choosing a credit card, including card comparison. It tells you what happens when you apply for a credit card and what you can do if your request is rejected.

Choose a credit card

There are hundreds of credit cards available, so shop to get the one that suits you best.

Start by thinking about what you want to use the credit card for. This can be to buy things online or on vacation, to pay your bills or to spread the cost of a purchase. Regardless of how you use your card, the most important thing is whether you pay back what you owe each month or whether you spread the refunds over a period of time.

If you can pay the balance in full and on time every month, you can enjoy the interest-free period. In this case, the interest rate may not be so important, but you may want to look at the cards with other incentives, such as cashback. Even if you think you can pay the balance in full every time, it's worth planning what you will do if you can't.

If you plan to use the card for borrowing and not return the balance every month, then, as a rule, you will have to pay interest. In this case, you can choose a card with a lower interest rate. Keep this in mind to ensure that you can afford a regular refund.

For more information on choosing the loan, see the best loan offer.

If you have already applied for a credit card

Asking for too many cards or changing cards regularly can affect your creditworthiness. Each time you apply, it is stored in your credit file. Your file also indicates whether a request is rejected. When new providers check your credit report, it may seem that you already have a lot of cards or that no one else wants to lend you.

Find out your credit rating and how lenders decide to give you a loan.

If you're having trouble paying what you owe on a credit card, find out how to manage debt.

Checklist of items to look for when choosing a credit card

Here is a list of some things to consider when choosing a credit card:

Annual percentage (AEG). This is the cost of borrowing on the card, if you do not pay the entire balance every month. You can compare the APR for several cards that will help you choose the cheapest one. You should also compare other things on the cards, for example, fees, fees and incentives

minimum refund. If you do not pay the balance every month, you will be asked to refund a minimum amount. This usually equates to about 3% of the balance due, or indispens5, whichever is higher

Annual contribution. Some cards charge an annual fee for using the card. The costs will be added to the amount due and you will have to pay interest on both the costs and your costs unless you pay them in full

fresh. Check in the loan agreement what other fees apply to the card. As a rule, you will be charged if you exceed your credit limit, use the card abroad, and payment is late

Introduction of interest. This is where you start paying a low interest rate or not at all. The rate then rises after a while. For example, it can increase after six months or from a certain date. You will often see an introductory rate for balance transfers. If you compare the cards, look at the duration of the introductory course and the interest at which it changes at the end of the introductory period.

Loyalty points or rewards. The points add up according to the amount you spend, and you can then use them to buy goods. Sometimes it is in certain stores. Check how and where rewards can be used and think about how likely you are to use them

Money back. Here you will be refunded money to your card, depending on how much you spend. Make sure you are likely to benefit from cashback. For example, it can only apply if you pay your balance in full every month. A lower interest rate can be a better deal.

For more information on APR, see the best loan offer.

Comparison of Cards

Important information you need to receive

When you receive credit card information, you need to add a summary box with important information about the card by default. These include the interest-free period, the interest rate and other fees. This is so that you can easily compare different maps.

Here you can find more information about the credit card statement dialog box, including an explanation of the meaning of all terms on the UK Cards Association website at the following address: www.theukcardsassociation.org.uk .

Using a comparison page

You can use a comparison website to see what different credit card providers offer. There are many comparison sites and not all credit cards are displayed on all sites. Therefore, you may have to look for a specific product.

Details on some comparison pages can be found in a help and more information.

Credit Card Application

You can request a credit card:

• Online

• by post

• by phone

• in a bank or broker company.

You will need to fill out a form and the credit card provider will check your credit report with a credit reporting agency to see if you are creditworthy.

Your credit report includes information on how to manage your finances, such as your bank account and other loans you have. It tells the provider if you are a good payer and about court orders you have received in the last six years. You can check your credit report yourself by contacting one of the credit bureaus. There is a small fee.

For more information about your credit report and how to contact credit reference agencies, see credit denial in credit.

When filling out the credit card application form, make sure that all the information you enter is correct. If you do not know how to fill out the form, ask the credit card provider for help. You must sign the form to indicate that all information is correct and that any false information you provide may be considered fraud.

Signing of a loan agreement

If your application is accepted, you will be asked to sign a loan agreement. This is a legal document that indicates what you and the supplier accept. The loan agreement includes details such as the amount you can borrow, the amount and time of repayment, the interest and fees that may be added, Your Rights and obligations under the agreement and any other terms that apply to it. Always try to read the fine print to know exactly what you are accepting.

Additional cardholders

You can ask that other cardholders have permission to use your card. But remember, if you do this, you will be responsible for paying for everything you spend on your card. It's a good idea to agree on certain rules with the additional cardholders about when they can use the card and make sure you talk to them about your expenses. Otherwise, you may exceed your credit limit or repay more than expected.

If your application is rejected

Providers do not need to give you a credit card. Your application may be rejected if your credit score is low or if you do not take a good risk. Ask the provider to tell you which credit report they used if you want to check your credit report.

For more information on how credit card providers decide whether or not to give you a loan, see Credit Denial in Credit.

Although credit card providers may decide not to give you a loan, you should not be discriminated against in your decision. This means that you should not refuse to give them credit just because of their race, gender, disability, religion, sexuality or place of residence.

If you think you have been discriminated against when applying for a credit card, ask a consultant, for example at a Citizens advice center. To find the details of your nearest cabin, including those who can give advice by email, click on the nearest cabin.

Help and further information

For more information on dealing with credit cards, see credit cards.

The website of the money advisory service contains a lot of useful information on how to borrow and manage your money.