| Today our entire
financial system relies on credit and there are over forty million credit cards
in use all over the world. Credit cards can help to make your life that little
bit easier- you can use it to pay for goods or services, either over the phone,
online or over the counter. UK credit cards can enable you to have that little
extra spending power when and where you need it. In addition to paying for purchases
you can also use your credit cards in order to withdraw cash from an ATM, not
only in this country but all over the world.
With each credit card you will have a limit to the amount of money that you
can spend on it. This is known as a ‘credit limit’. You can withdraw
money and pay for goods and services as much as you want up to your credit limit,
effectively borrowing capital from your credit card provider. Every month you
will receive a credit card statement that will detail both your balance (the amount
of money you have either withdrawn or spent) and any interest that has accrued
upon it (read more about APR here). You can then either
pay off the full amount, make the minimum payment or simply pay off as much as
you can afford at the time (so long as it is at least as much as the minimum permitted
payment).
UK credit cards operate on a revolving credit system that makes it a unique
form of borrowing. This means that the cardholder can borrow as much money (up
to their credit limit) as they like, when and where they like, without previous
permission from their bank manager or lender.
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