Compare credit cards

Lenders will look at several factors when deciding whether to offer you a card. These include:

• Your income – you’ll need to give details of your annual salary and any other earnings.

• Your credit score – a hard credit check is carried out to find out how well (or otherwise) you look after debt today, and how successful (or otherwise) you’ve been at doing it in the past.

• The amount of debt you have – it can be a red flag if you’re already juggling a lot of debt. Lenders want to be sure you can manage a new card without overstretching your finances.

You may be rejected for a credit card if you have a poor credit history. Lenders will look at this as part of their assessment of the likelihood you’ll repay what you owe.

If you’ve been rejected for a credit card:

• Wait at least three, but ideally six, months before applying again. Making multiple credit applications in a short space of time can hurt your score

• Before you apply for a credit card, use our eligibility checker. It’ll show you which cards you’re likely to be accepted for, without having an impact on your credit score.

How much you repay each month can affect how quickly you clear your balance and how much interest you pay. Paying more than the minimum can help because you:

• Usually pay less interest (if your card charges interest), and  

• Can clear your balance faster, even on a 0% interest card.

The minimum payment is the smallest amount you need to pay to avoid penalties. It’s usually worked out as:

• A percentage of your balance or a set amount in pounds,whichever is higher, plus  

• Any interest or fees.

You can also pay off your credit card early. Unlike with many loans and mortgages, you normally won’t be charged any fees or penalties for early repayment. Be aware that if you miss a repayment on your credit card:

• You’ll usually have to pay a penalty

• You might also lose any introductory benefits, such as 0% interest

• Your credit score may also be damaged.

No, you can’t get a joint credit card, but you can add an additional cardholder to your account.

An additional cardholder:

• Will need to be over 18

• Could be your partner, family member or friend

• May need to be either a close family member or someone living at the same address, depending on the lender.

They’ll get their own card, but you’ll be fully responsible for any debt on that card and all the admin involved. It’s important that you trust your additional cardholder not to run up big debts.

A car hire company may ask for your card up front for what’s called ‘pre-authorisation’. This is to make sure they can collect the money owed to them if you don’t pay up.

The company puts a hold on some of your credit. While that’s in place, you won’t be able to spend that money elsewhere. For example:

1. Your credit limit is £1,000

2. A car hire company puts a pre-authorisation of £500 on your card

3. You’ll only be able to spend up to £500 more on your card (less if you already have a balance on it).

Unless you’re on an introductory 0% rate, most credit cards have a variable interest rate. This means the rate can go up or down at any time.

Be aware that:

• Providers have the right to change their interest rates when they want

• Changes to the Bank of England base rate can also affect the interest rate on your credit card.

Yes, you have a 14-day cooling-off period from when you receive your card to tell the provider you’ve changed your mind.

• There’ll be no penalty fee for withdrawing your application, but

• You’ll need to pay off any outstanding balance on the card within 30 days.

If you miss a repayment on your credit card:

• You’ll usually have to pay a penalty

• You might also lose any introductory benefits, such as 0% interest

• Your credit score may also be damaged.

There are two ways to get more credit on your card:

• You may automatically be offered a higher credit limit once you’ve proved yourself to be a responsible borrower, or

• You can contact your provider to ask for an increase, which you may or may not get.

If you ask for an increase, it will leave a mark on your credit file. An uplift that your lender has voluntarily given you won’t.

Yes, you can pay off your credit card early. Unlike with many loans and mortgage debts, you normally won’t be charged any fees or penalties.

To cancel your credit card:

1. Pay off any remaining balance on your card

2. Contact your credit card provider and let it know you want to close the account

3. Once you get your final statement, check it to make sure the last payments are shown and the balance is fully cleared

4. Check that your credit report shows the card as having been cancelled, but bear in mind that it could take several weeks for the change to be reflected

5. Once the card is cancelled, cut through the number and name and throw it away.

Our credit card comparison service doesn’t include every single credit card available in the UK. This is because:

• Some credit card providers have exclusives available through their own high-street branches or websites, or on other price comparison sites

• Some credit cards are only available to those in clubs or membership organisations.

But we do have many options from major banks and credit card providers for you to compare in your credit card search.