Financial
Services > Credit
Cards > Questions
& Answers
What is a credit card?
A credit card is any form of card which allows purchases on credit.
Credit cards are usually categorised according to the issuing
system. The most common credit card systems in the UK are Visa,
Mastercard, and American
Express.
What is the difference between a credit card and a debit card?
With credit cards, you will receive a monthly statement, which
you can either pay off in part or in full. All card issuers will
have a minimum monthly payment requirement, which is usually between
2 and 5% of the outstanding balance, or the full balance if you
owe less than £5.
Debit cards enable you to use your current account (or some savings
accounts) to make purchases. Funds are usually debited instantly,
or within 2-3 days of the transaction being made.
Which type of card gives me more spending power?
With a debit card, you are restricted to the funds which are
available in your bank account. With a credit card, you can spend
any amount upto your available credit limit. Please read our advice
guide for hints about avoiding going over your credit limit.
What is a charge card?
This is similar to a credit card, although the monthly balance
must be paid in full. The main type of charge card issued to UK
consumers is American
Express. Most business
credit cards operate as charge cards.
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