Q Why is it important for me to have a good credit rating?
A Your credit rating is a score based on just your credit report. It takes all of your credit history and applies an overall score to it based on how you have managed your finances in the past, giving you a good general indication of how lenders are likely to view your application. It also looks at non-financial information such as court orders i.e. CCJ's, and whether you are on the Electoral Roll.
Q How much will I have to repay each month?
A Your credit card provider will specify a minimum repayment you need to make each month. (This is normally a percentage of your outstanding balance, although there is usually a minimum cash amount you have to pay). If you fail to make at least the minimum repayment each month you'll be charged a late payment fee.
Q What is an APR?
A Credit providers will advertise their products using their APR (Annual Percentage Rate of charge).
The APR makes it easy to compare different credit products before deciding which one is best for you. For credit cards the APR is based on the purchase interest rate and includes things like annual fees, although cash withdrawal charges and default fees are not included.
Q What is a credit limit?
A The maximum amount that your credit card company is prepared to lend you on your credit card. You should always leave some available credit on your credit card for any interest to be applied. If you exceed your credit limit you may be charged a fee.
Q What is a credit history?
A Your credit history is held by credit reference agencies and is one part of your credit report. Basically, credit history is exactly that, how you have managed your finances in the past, including credit cards, loans or a mobile phone contract.
See all FAQS about Capital One credit cards