Standard (Classic) Credit Card: A regular card with a set credit limit. It typically offers a grace period on purchases if you pay in full. Beyond that, purchases incur interest at the card’s APR. These are for general use and usually require a good credit history.

Balance Transfer Card: Designed to consolidate existing credit card debt. You transfer outstanding balances from one or more cards onto this new card. You’ll usually pay a one-off transfer fee. By using one of these, your repayments go towards clearing the old debt rather than extra interest, saving money if you can pay down the balance during the promo. (Note: During the grace period you still pay interest on any new purchases unless otherwise stated.)

Money Transfer Card: Similar to a balance transfer card, but instead of transferring to another card, you transfer funds into your bank account as cash. This can be used to pay off any debt or expense directly. It also usually offers a grace period on the transferred money, but charges a fee. Use with caution: you’ll pay interest on any cash advance after the grace period ends.

Rewards/Cashback Card: Gives you cashback or reward points/miles on your spending. For example, a cashback card may give 1% of all purchases back as a statement credit, while a rewards/airline card earns loyalty points or miles for spending. These benefits are only worthwhile if you always pay your balance in full; otherwise, the interest negates the rewards. Many reward cards charge an annual fee to offset the value of the rewards.

Credit-Builder Card: A card for people with poor or limited credit history. Approval is easier, but APR is high (often up to ~60%). The strategy is to use it for small purchases and pay in full every month; doing so avoids interest and helps build a positive credit record, which may lead to better cards later. Never withdraw cash on these you will most likely face huge fees.

Travel Card (Foreign Currency Card): Designed for spending abroad. These usually offer no foreign transaction fees and better exchange rates, making purchases overseas cheaper. However, they may still charge interest on cash withdrawals, and often have an annual fee.

Applying for a credit card in the UK always involves a hard credit check. The lender will examine your credit file and credit score to decide whether to approve you. A hard inquiry may slightly lower your score in the short term. To protect your credit, first use the pre-check tools mentioned above. Sites like LoanTube use soft searches in their eligibility checks, which do not affect your credit score.

Your credit score is a major factor in approval and the interest rate offered. A higher score generally means better rates. If your credit history has issues, you may struggle to get standard cards. In that case, a credit-builder card or secured card might be an alternative (albeit with higher cost or needing collateral).

If you miss payments, your credit record is marked with a late payment, which will harm your score. This makes it harder to get other credit and means you may lose access to low rates or deals. Conversely, using a credit card responsibly (always paying on time and keeping the balance low) can improve your credit score over time.

0% Purchase (Introductory) Card: Offers suspended interest on purchases for an introductory period (often 6–30 months. During that period you can buy items interest-free if you pay at least the minimum each month. After the promo ends, the interest rate jumps to the normal APR. These are useful for spreading the cost of a planned purchase without interest.

Balance Transfer Card: Designed to consolidate existing credit card debt. You transfer outstanding balances from one or more cards onto this new card, which typically offers null (or very low) interest on transferred balances for a fixed term (often 6–30 months). You’ll usually pay a one-off transfer fee (commonly ~3–5% of the amount). By using one of these, your repayments go towards clearing the old debt rather than extra interest, saving money if you can pay down the balance during the promo. (Note: During the promotional period you still pay interest on any new purchases unless otherwise stated.)

Money Transfer Card: Similar to a balance transfer card, but instead of transferring to another card, you transfer funds into your bank account as cash. This can be used to pay off any debt or expense directly. It also usually offers a 0% interest period on the transferred money, but charges a fee (often ~3–5%). Use with caution: you’ll pay interest on any cash advance after the 0% term ends.

Rewards/Cashback Card: Gives you cashback or reward points/miles on your spending. For example, a cashback card may give 1% of all purchases back as a statement credit, while a rewards/airline card earns loyalty points or miles for spending. These benefits are only worthwhile if you always pay your balance in full; otherwise, the interest negates the rewards. Many reward cards charge an annual fee to offset the value of the rewards.

Credit-Builder Card: A card for people with poor or limited credit history. Approval is easier, but APR is high (often up to ~60%). The strategy is to use it for small purchases and pay in full every month; doing so avoids interest and helps build a positive credit record, which may lead to better cards later. (Never withdraw cash on these – you’d face huge fees.)

Travel Card (Foreign Currency Card): Designed for spending abroad. These usually offer no foreign transaction fees and better exchange rates, making purchases overseas cheaper. However, they may still charge interest on cash withdrawals, and often have an annual fee.

Using a credit card affects your credit score both positively and negatively. Positive behaviour (paying in full or at least on time, and keeping your utilization low) builds a good credit history. Each on-time payment is reported to credit agencies as evidence of reliability. On the other hand, any late or missed payments are recorded as negative marks. High utilization (using most of your credit limit) can also temporarily lower your score. When applying for credit cards, each hard search will show on your file; too many applications can signal risk to lenders.

Tip: Use eligibility checkers or pre-approval tools to prevent unnecessary hard checks. After opening a card, avoid closing it immediately – the longer and more responsibly you use it, the more positive data is added to your record.