YourFinanceCoach

Credit cards (UK)

How cards charge interest, what the fees mean, and how to pick one that fits.

A credit card is a revolving credit agreement regulated by the FCA. Clear the full statement balance by the due date and most cards charge no interest on purchases. Carry any of it and the interest-free period usually stops applying until you clear it again. Section 75 of the Consumer Credit Act also makes the issuer jointly liable with the retailer on purchases over £100 — a protection a debit card does not give you.

What this section covers

  • How interest is charged, and when it is not
  • What the minimum payment is designed to do
  • Balance transfers and promotional rates
  • Fees that sit outside the advertised rate

Written for the United Kingdom. Terminology, protection limits and regulators differ between markets, so a guide from another country will not transfer cleanly.

UK credit cards guides

    Answer

    How Credit Card Interest Works in the UK

    The interest-free period, how the daily rate is applied, what Section 75 gives you, and what the minimum payment is actually designed to do.

    Updated 25 August 2026 · 4 min read

Calculators

Tools for credit cards

Run the numbers on your own situation.