Credit Card FAQs

Score booster is our term for credit builder products. It refers to a product that you can use to help give your credit score a boost. With a score booster or credit builder card, when used little and often and repaid in full each month, it can improve your credit score over time.

How do you compare a personal loan vs credit card?

With a credit card, you have access to a line of credit. Consequently, you can spend up to a certain limit each month. Once you repay what you owe, that amount is available to you again. Then they charge you interest on your borrowing only if you don’t repay what you owe in full when your bill is due. There are many different types of credit cards that have different features and benefits. These range from helping you spread your costs, clear existing credit card debts or giving you rewards for your spending.

More about personal loan vs credit card

With a personal loan, you borrow a fixed amount off a lender. Then you pay it back in monthly instalments plus interest over the term of your loan. Once you repay your loan in full, you’ll clear your debt. Then, they apply interest to the amount you borrow over the whole term of your loan. As a result, you’ll pay back more than you borrow at the end of your term.

To cancel a credit card, you’ll need to have cleared the balance. Once the balance has been cleared, get in contact with your credit card provider and let them know you want to cancel your card.

Simply not using the card will keep the account open, so it’s critical that you contact your credit card provider if you want to close it.

A cash advance is a service provided by most credit card companies. In short, it allows you to withdraw cash from an ATM or at your bank using your credit card. Your cash advance limit may be different to your card’s credit limit. Consequently, the APR they charge you with may be different to your card’s usual APR. You’ll face charges on interest for a cash advance from the moment you borrow the money to until you repay it.

A 0% purchase card allows you to spend on your credit card without being charged interest for the 0% period.

This means that if you wanted to spread the cost of a big purchase or a number of small purchases, you could make the payments on your credit card, then pay it off in monthly instalments before the end of your 0% period.

Just remember that once the 0% period ends, the card’s usual interest rate will apply to any remaining balance.

A balance transfer card allows you to transfer a balance from one credit card to another. Balance transfer credit cards often come with 0% interest for a fixed term, for instance the first four months of you owning your credit card.

Balance transfer card definition

This means that you can transfer the amount you owe from another credit card (usually for a fee), and not pay interest on the balance for the 0% period. This can give you more time to pay off what you owe without your debt increasing. When your 0% period comes to an end, the card’s usual interest rate will apply to any remaining balance.

How long it takes for your PIN to arrive will depend on your credit card provider, although most credit card providers will send you your new credit card and PIN within 10 days of being approved. For security reasons, your PIN number will usually arrive separately from your credit card.

Not sure whether to use a credit card or debit card? We’ve weighed up the pros and cons in this guide: credit cards vs debit cards.

The answer to this question ultimately depends on your credit card provider. But usually it takes between seven to ten working days from the date they accept you. Your PIN will arrive separately from your credit card.

If you don’t make at least the minimum monthly repayment, this will have a negative impact on your credit score. When you miss monthly repayment, it can remain on your credit report for up to seven years. Therefore, it’s important you don’t borrow more money than you can afford to pay back.

Yes: with a credit card, your credit score can go up. But only if you make at least the minimum repayment on your credit card each month. As a result of that, it’s possible that your credit score would ultimately improve over time.