Choosing your Credit Card
A credit card is a payment tool that allows you access to a flexible source of credit. Within your credit limit, and subject to your terms and conditions, you can choose:
- how much you spend
- how much you borrow
- how long you borrow for
- how much you will repay each month, from the minimum repayment amount up to the whole amount.
Most people use their credit cards purely to pay for purchases. These customers repay the outstanding balance in full and on time and so do not incur any interest or charges on their purchases. Others choose to use their credit cards for occasional borrowing to help spread the cost of major purchases.
Almost all credit cards give you some period of interest-free borrowing for purchases, as long as the bill is paid in full every month by the payment date. This interest free period can vary between credit cards.
However, cash withdrawals, balance transfers and credit card cheques will often incur interest charges immediately.
Check the Summary Box for the interest rates and related charges for different types of transaction.
