Credit cards

What's the interest rate?
There are lots of good deals on credit cards. The key things to look at when comparing credit card interest rates are:

• If they offer an introductory interest rate what does this cover - is it just on any outstanding balances you transfer from another card or does it include new purchases?
• What is the standard interest rate once the introductory rate ends?
• Are there any other hidden charges like annual card fees you'll have to pay?

How long can I repay it over?
It's up to you how long you take to repay your debt. You can vary the amount you pay off each month though you'll always need to pay a minimum. Be careful though - if you only pay the minimum, the interest soon begins to stack up.

What extra benefits can I get?
With some credit cards you get extra benefits, like points which can be converted into money off your shopping, air miles or cash back, based on the amount you spend on your card. Some offer free travel insurance - but be cautious, the cover is limited so you'll probably need to take out travel insurance too. You'll also often get free purchase protection insurance for a certain period on goods you've bought with your card.

What happens if I struggle repaying my credit card?
If you miss a payment you'll normally be charged a 'late payment fee'. If you do think you're beginning to struggle, the first thing to do is to speak to your lender and explain the situation.

For more information look at our coping with debt section.

What is payment protection?
You'll often be offered payment protection insurance when you take out your credit card.

This covers your monthly repayments on a credit card or loan if you lose your job or are too ill to work. Generally, with a loan, your monthly payments will be paid for a set time and, with a credit card, your minimum monthly payment (usually 3-5 per cent of the outstanding balance) will be paid - again for a set time. There is no obligation to take this out.