Credit Cards : A SearchMeSilly Guide

Repayments
Most lenders will require a minimum monthly payment (usually) of £5 or 3-5% of the outstanding balance and the less you pay off, the more interest you are charged. As credit card bills have a lee-way, unlike a mortgage, it’s tempting to miss an occasional repayment. But it is worth remembering that credit card debt can come highly-priced.

APR
Stands for Annual Percentage Rate and is designed for you to make a direct, side-by-side comparison when shopping around, by showing you what you’ll pay on debts. It’s the only guide to the cost of borrowing and as an organisation that lends money, they are legally bound to disclose this information. The cost will vary for individuals according to the type of repayments chosen.

Interest-Free Period
A length of time where you do not pay interest on the debt. Usually somewhere between four and eight weeks and applies to the entire statement, not individual transactions. It may be worth investing in this period as it can lower the cost of borrowing if you delay paying your monthly balance until the last moment. Even if you pay the balance on immediate receipt of statement, without this period you will still be charged interest in between.