Back to FAQs category About Credit About bad credit Searches on your credit report Your credit card application Using your credit card Managing your account Statements, payments & interest Safety & Security Photocard Secured Card Aspire® Elite Card Mobile App Complaints Payment Protection Insurance (PPI) Subject Access Request Payment Services Directive (PSD2) About credit What is APR? APR stands for 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. What is a credit limit? A credit limit is the maximum amount that you can owe on your Capital One credit card. Your spending (including balance transfers and cash withdrawals) and any charges, interest or fees that we add must not exceed this credit limit. If it does, we may charge you an overlimit fee. You can find your credit limit, together with your current balance and the amount you have available to spend, in your online account. What is the minimum payment? The minimum payment is the lowest amount you must repay each month to avoid a late or missed payment fee. It includes any interest due for the month, plus any fees incurred because of a missed payment. You can find your minimum payment amount on your statement. The minimum payment is not a fixed amount, but a calculated percentage of your balance. As your balance reduces, so does the minimum payment you'll need to make each month. But it does mean that by only making the minimum payment each month, it will take much longer to clear your balance. You should therefore think carefully about only making the minimum payment. The quicker you repay, the less it costs, so always try to pay more than the minimum payment whenever you can. Please see your terms and conditions for more information. What is a credit history? Your credit history is a factual record of credit accounts you've had over the last six years, combined with public record information, such as the electoral roll and the register of county court judgements. Most people have some sort of credit agreement, whether that's a car loan, a mortgage, credit cards, an overdraft, a mobile phone contract or a mail order catalogue account. Information on your credit behaviour is collected and maintained by credit reference agencies. A credit history is not a blacklist of people or properties and it doesn't give an opinion about whether or not a person should be offered credit. Lenders don't know about your credit history unless you apply to them for credit. At this point they contact the credit reference agencies to request access to your credit file, the record of your credit history. What do credit reference agencies tell you about me? We request information on your credit behaviour from the UK's three major credit reference agencies – Experian, Equifax and Callcredit – to help us assess your application for credit. You give us your permission to look at your credit file when you click the submit button on your application form. These agencies work with us and other businesses, including banks, building societies, mobile phone companies and retailers, to help us make quick decisions about the likelihood of people applying for credit paying back what they borrow. Can I see my credit file? Yes. You can get a copy of your credit file by contacting the three independent credit reference agencies that collect and maintain information about your credit behaviour. These agencies charge for this service. Experian opens in a new tab Call Credit opens in a new tab Equifax opens in a new tab If any information on your credit file is not true, you must tell the credit reference agencies. Why is it important to have a 'good' credit score? Your credit score gives you an indication of how lenders see you when assessing you for credit applications. It's typically a number between 300 and 850, which is designed to represent your credit risk, or the likelihood you'll pay your bills on time. The higher your score, the lower risk you're seen to be, so it's worth everyone taking the time to manage and boost their credit score. A good credit score can help you get access to better products and lower rates, such as cheaper car insurance premiums, mobile phone contracts, mortgage interest rates, rewards credit cards or 0% balance transfer offers. Check your credit score and credit report for free with CreditWise.