What does score booster mean?

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.

What’s the difference between a personal loan and a credit card?

With a credit card, you have access to a line of credit which you can spend up to a certain limit each month. Once you repay what you owe, that amount is available to you again. You are only charged interest on your borrowing 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.

With a personal loan, you borrow a fixed amount off a lender and pay it back in monthly instalments plus interest over the term of your loan. Once you’ve repaid your loan in full, you will have cleared your debt. Interest is applied to the amount you borrow over the whole term of your loan, so you will have paid back more than you borrowed at the end of your term.

How do I cancel a credit card?

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 important you contact your credit card provider if you want to close it.

What is a cash advance?

A cash advance is a service provided by most credit card companies that 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 and the APR you are charged may be different to your card’s usual APR. You’ll be charged interest on a cash advance from the moment you borrow the money to until it’s repaid.

What is a 0% purchase card?

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.

What is a balance transfer card?

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.

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 will it take for my PIN to arrive?

This will also depend on your credit card provider. Your PIN will usually arrive separately from your credit card.

How long will it take my card to arrive?

This will depend on your credit card provider, but usually it takes between seven to ten working days from the date you were accepted. Your PIN will arrive separately from your credit card.

What happens if I miss a monthly repayment?

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

Can a credit card improve my credit score?

Yes, if you make at least the minimum repayment on your credit card each month, your credit score could improve over time.

FAQs

We know that finance can be pretty confusing. Which is why we want to give you the clearest, jargon-free guidance to help you find the best loan for you – without the Baffles.

Please wait..

Bad Credit FAQs

Car Finance FAQs

Credit cards FAQs

Debt Consolidation FAQs

Homeowner Loans FAQs

Mortgages FAQs

myfreedom marketplace FAQs

Personal loans FAQs

Uncategorised