Credit & debit cards
Picking a card means knowing the charges, the rates, and whether you will be looked after if a payment or provider goes wrong. Those are the things most people want to get right.
Credit & debit cards companies
3 companies
About Credit & debit cards
Credit and debit cards in the United Kingdom cover the everyday means of paying for goods and services, borrowing on credit, and withdrawing cash at home and abroad. The market includes high street banks, building societies, challenger banks, digital-only lenders and specialist card issuers, along with retailers that offer their own store cards. Providers reach customers through branches, online applications, comparison platforms and partnerships with employers or affinity groups.
Credit cards are issued by lenders authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority, which sets the rules on affordability checks, fair treatment and how arrears are handled. Debit cards are linked to current accounts and fall under the same regulatory framework as the banks that issue them.
Card payments are processed through the major networks, Visa and Mastercard, which set the scheme rules that issuers and merchants operate under. Consumer protection is supported by the Financial Ombudsman Service, which resolves disputes between customers and card providers, and by Section 75 rules that make credit card lenders jointly liable for certain purchases.
Questions about Credit & debit cards
How do I choose the right credit card in the UK?
Start by deciding what you need the card for, such as balance transfers, purchases with 0% interest, rewards or cashback, or simply a way to build credit history. Then compare the representative APR, the interest-free period, the annual fee if there is one, and the minimum income or credit score the lender asks for.
What should I compare between credit card providers?
Compare the purchase APR and the rate that applies to balance transfers, as well as any fees for cash withdrawals, foreign transactions and late or over-limit payments. Check the credit limit you are likely to receive, the length of any promotional 0% period, and whether the card carries an annual fee or requires a minimum monthly payment.
Is a credit card provider regulated in the UK?
Credit card lenders and their intermediaries must be authorised and regulated by the Financial Conduct Authority, and you can confirm this on the FCA Register before you apply. Lenders are also bound by the FCA's Consumer Duty and by the Consumer Credit Act 1974, which sets out your rights if something goes wrong.
Can I cancel a credit card agreement after I sign up?
You have a statutory 14-day cancellation period under the Consumer Credit Act 1974 that starts from the day you receive the agreement or the card, whichever is later. To cancel, write to the lender, and you must repay any balance and interest accrued on the card, but you will not be charged an early exit fee.
What happens if I miss a credit card payment?
The lender will charge a late payment fee and may add the missed amount to your interest-bearing balance, which increases what you owe. The FCA's rules limit the late fees and penalty charges a card provider can levy, and the lender must treat you fairly and help you if you fall into difficulty.
What are my rights if a purchase on my credit card goes wrong?
Under section 75 of the Consumer Credit Act 1974, the card provider is jointly liable with the retailer for goods or services costing between £100 and £30,000 bought with the card. For purchases made with a debit card or on a card that falls outside that range, you can ask your bank to attempt a chargeback under the scheme run by Visa or Mastercard.
How do I make a complaint about a credit card provider?
Raise the complaint directly with the provider first, ideally in writing, and keep a record of the reference number and every response you receive. If you are not satisfied with the outcome or the provider does not reply within eight weeks, you can refer the matter to the Financial Ombudsman Service, which is free to use.
What protections does the Financial Services Compensation Scheme offer for credit cards?
The Financial Services Compensation Scheme protects deposits held with banks and building societies, but it does not cover the credit you borrow through a card. If a bank or card provider fails, the scheme may pay compensation for claims in relation to deposits, while the Financial Ombudsman Service handles disputes about how a card was managed.
Can a credit card provider lower my credit limit without telling me?
The lender must notify you in writing when it reduces your credit limit, and it must explain the reason for the change under the FCA's rules on creditworthiness assessments. You have the right to ask the lender to review the decision, and you can check your credit reference files with Experian, Equifax or TransUnion to see what information was used.
Should I trust reviews of credit card providers online?
Read reviews for specific details such as how the complaint was handled, how long a card application took, and whether the reviewer described the terms accurately. Be cautious of reviews that focus only on rewards or sign-up offers, and compare what customers say about the service with the official terms, the fee schedule and the FCA Register entry.
Will applying for a credit card affect my credit score?
Each application produces a hard search on your credit file, which is recorded by the credit reference agencies and can lower your score for a short period. Making several applications within a short time may signal to lenders that you are short of money, so it is sensible to check your eligibility with a soft search before you apply.
How do I check whether a credit card company is legitimate?
Search for the firm on the FCA Register and confirm that its name, address and firm reference number match the details given on the card documents and the lender's website. Be wary of unsolicited calls or emails offering a card and of any firm that asks for an upfront fee, as a genuine lender will not charge you to receive a credit card.