Credit Cards UK

The annual percentage rate is a figure that expresses not only the interest that you will pay on your credit card but also any additional fees that might also be applicable. Additional charges might include arrangement fees or administration costs. APR is calculated according to statutory law, and it is illegal for a UK credit provider to withhold the true APR of the product that they are offering.

It is important to note that APR represents the annual percentage rate that you will be billed. Sometimes UK credit card providers express their interest rates as monthly figures in order to tempt the unobservant consumer into signing up for their product. Make sure that when you are comparing credit cards and searching for the low interest rate credit cards you are looking at the actual APR and not a cleverly distorted figure.

Whilst APR will accrue at the agreed interest rate upon your credit card balance, it is possible to use a credit card without earning any interest charges upon your balance. Every card will carry with it an interest free period during which any purchases will not build up any interest. The interest free period will vary from card to card, but is generally around 28 days. If you use your credit card shrewdly, by paying off your monthly balance before the interest free period runs out, then it is effectively possible to use a credit card for free. In this way it is possible to take advantage of credit without paying for it.