As with all credit cards, a credit building card will have a maximum spend limit. However, the limit is typically lower than most other credit cards – from around £100 to £1,200. It’s also very important you understand the APR (annual percentage rate). A credit card’s APR shows you how much interest you would be charged, over the course of a year, for borrowing on credit if you don’t pay the outstanding balance back in full each month.
Credit building cards often come with a higher rate of interest, so it’ll cost you more money (in terms of interest) if you don’t pay it off each month. This reflects the cost of the greater risk the provider is taking on by lending you money. Therefore, as with any credit card, it’s really important to pay off what you owe on the card in full each month. Depending on the terms and conditions set out in your card agreement, your limit could be increased as you prove you can spend more responsibly, but this depends on many factors – including the terms you agreed to when you applied for the credit card.