Credit cards can be confusing if you

don’t know much about them. The

answers to these Frequently Asked

Questions should help.

A credit card a small plastic card which can be

used to pay for things.

When you buy something with a credit card you are

borrowing the money and need to pay it back to the

lender at a later date.

You only pay interest on the money spent after a

fixed term and if the balance is not paid off in full

each month.

1. What is a credit card?

2. What are credit card interest

rates?

A credit card interest rate is a percentage used to

work out how much the lender charges you for

borrowing from them.

The higher the interest rate the more you will be

charged.

You are only charged interest on your outstanding

balance.

A balance transfer means moving the debt from

one credit card account to another.

It is common for people to move their credit card

debt to take advantage of special deals such as

cards with 0 balance transfer. These cards allow

people to move their debt and avoid paying interest

on it for a fixed period of time.

However, there may be a fee to transfer your

balance (typically 3% but can be lower).

3. What is a balance transfer?

4. What is credit card cashback?

Credit card cashback is a type of reward scheme.

When you spend money on your credit card you

get a percentage of the cash back from the credit

card company.