| When it comes to getting a credit card, what may | | | | Annual Percentage Rate (APR) |
| appear to be the best option at first may not work out | | | | The amount of additional money you will pay per year |
| like you expect. That is why getting your head around | | | | on the amount that you borrowed. If for example you |
| the industry jargon and terminology can put you in a | | | | borrow $1000 over 1 year, then you will pay an |
| better position to work out what will be the best deal | | | | additional $100 if the APR is 10%. |
| for you. Before you choose to use a credit card | | | | Transfer Rate or Balance Transfer Rate |
| service, we advise customers that they should initially | | | | This is the rate that a credit card provider will charge |
| project how much they are going to spend and how | | | | to clear your existing debt (in whole or in part) if you |
| they are going to pay it back, they should then use | | | | move your debt to their service. This can often |
| that information to calculate what service provider will | | | | provide advantages for customers because the credit |
| charge the least for financing their purchases. You | | | | card provider is willing to invest a large amount of |
| may be surprised to learn that the provider you initially | | | | money to attain a new customer. |
| thought to be the cheapest, may not be when you | | | | Minimum Repayment |
| analyze the finer details of their terms and conditions. | | | | Minimum Credit Card Repayment relates to the |
| Interest Free Period | | | | minimum amount of your debt that you will have to |
| An Interest Free Period relates to the amount of time | | | | pay back at the end of each month. This is often in |
| when the APR will be zero. This is more often used | | | | the region of around 4% of your total debt, so |
| as a means of attracting new customers, but will | | | | therefore although you may not be able to pay all your |
| almost certainly only apply to a limited period of your | | | | debt off at the end of the month, please ensure that |
| contract. Please also note that it is unlikely and | | | | you are able to pay at least 4% before you complete |
| uncommon that this will apply to cash withdrawals. | | | | a purchase. |
| Introductory Rates (Specials/ Introductory Deals) | | | | Rewards and Cashback |
| Should you be offered a special introductory rate then | | | | This is a system offered by some credit card |
| this means that the rate does not apply for the lifetime | | | | providers that reward those who choose to spend |
| of your contract with the service provider. They may | | | | money using their card. This can sometimes be in the |
| offer an introductory rate of 0% APR but this is | | | | form of Cashback which means that you may get |
| merely to make you reliant on their service, however | | | | actual cash to spend, or in some cases your cash |
| watch out because they may charge for other | | | | may be given in the form of a reward where your |
| elements such as cash withdrawal. Please note that a | | | | money will be tied to a particular retailer or given in the |
| wise credit card user may make use of an | | | | form of a gift for example. |
| introductory offer to their advantage. | | | | |