Credit Card Glossary: UK Credit Card Terms Explained A–Z

By QuidRadar Team · Updated 30 October 2026

Credit card paperwork is full of jargon. This A–Z explains the terms you'll meet on UK card pages, summary boxes and statements, in plain English. Where we have a full guide, the term links to it.

Key takeaways

  • The summary box is the best single place to find a card's rates and fees.
  • Representative APR is a typical rate. You may be offered a different one.
  • 0% offers are temporary. Check the end date and the rate afterwards.
  • Section 75 protects eligible credit card purchases between £100 and £30,000.
  • Soft searches don't affect your score. Hard searches are visible to lenders.

This is general information, not financial advice.

A–C

Additional cardholder. Someone you let use your account with their own card. You're responsible for everything they spend. See Additional Cardholders Explained: Who Pays and How It Affects Credit.

Annual fee. A yearly charge for having the card. It's common on premium rewards cards and rare on everyday cards.

APR (annual percentage rate). The yearly cost of borrowing, including interest and some compulsory fees, as a percentage. See APR vs Representative APR: What Credit Card Rates Really Mean.

Available credit. Your credit limit minus your current balance and any pending transactions.

Balance transfer. Moving a debt from one card to another, usually to get a 0% or low rate, for a fee. See How Do Balance Transfers Work? A Plain-English UK Guide and Balance transfer credit cards.

Balance transfer fee. A one-off percentage of the amount transferred. On the cards we list it ranged from 0% to 4.5% when we checked in October 2026.

Cash advance (cash withdrawal). Using your credit card for cash or cash-like transactions. Usually comes with a fee and interest from day one. See Credit Card Cash Withdrawals: Fees, Interest and Using ATMs Abroad.

Cashback. A reward paid as a percentage of your spending. See Cashback Credit Cards Explained: Are They Worth It? and Cashback credit cards.

CCJ (County Court Judgment). A court order to repay a debt in England, Wales or Northern Ireland. It can stay on your credit file for six years unless paid quickly.

Chargeback. A process where your card provider asks the seller's bank to reverse a payment, for example if goods don't arrive. It isn't a legal right like Section 75, but it can cover smaller amounts.

Contactless limit. The maximum single card payment you can make by tapping without a PIN. Since March 2026 the FCA has let card providers set their own limits, but most UK providers still use £100. Phone wallets can often go higher.

Credit-builder card. A card designed for people with little or poor credit history, usually with lower limits and higher rates. See Credit builder credit cards.

Credit limit. The maximum you can borrow on the card.

Credit reference agency (CRA). A company that holds credit reports. The main UK CRAs are Experian, Equifax and TransUnion.

Credit utilisation. The share of your available credit you're using. See Credit Utilisation Explained: How Much of Your Limit Should You Use?

D–L

Default. Recorded when a lender decides a debt has broken down, usually after several missed payments. It stays on your credit file for six years.

Deferred Payment Credit (DPC). The FCA's term for interest-free Buy Now Pay Later, regulated since 15 July 2026. See Buy Now Pay Later vs Credit Card: Costs, Protection and the 2026 Rules.

Direct Debit. An instruction for your bank to pay your card bill automatically. Setting one up for at least the minimum stops missed payments.

Dynamic currency conversion (DCC). When a shop or cash machine abroad offers to charge you in pounds at its own exchange rate. It's usually worse than choosing the local currency.

Eligibility checker. A tool that uses a soft search to estimate your chance of approval. Try our eligibility checkers explained.

Financial association. A link on your credit report to someone you share joint credit with. See Financial Association on Your Credit Report: What It Means and How to Remove One.

Foreign transaction fee (non-sterling transaction fee). A percentage added to spending in other currencies. See Using a Credit Card Abroad: Fees, Exchange Rates and How to Save.

Hard search. A credit check recorded when you apply for credit. Other lenders can see it. See Does Applying for a Credit Card Affect Your Credit Score?

Interest-free period. The time between a purchase and the payment due date when you pay no interest, if you clear the full balance. It doesn't usually apply to cash.

Late payment fee. A charge if you don't pay at least the minimum by the due date. Many UK issuers charge £12. See Credit Card Fees Explained: Late, Over-Limit, Cash and Foreign Fees (UK).

Lounge access. Entry to airport lounges as a card perk, usually via Priority Pass or LoungeKey. See Credit cards with airport lounge access and Which UK Credit Cards Give Airport Lounge Access?

M–R

Minimum payment. The smallest amount you must pay each month. Paying only this makes debt last much longer. See Credit Card Minimum Payments and Persistent Debt Explained.

Money transfer. Moving credit from your card into your bank account, for a fee. See Money Transfer Credit Cards: How They Work and When to Use One.

Persistent debt. The FCA's term for paying more in interest and fees than off your balance over 18 months. Your provider must contact you and help you.

Pre-approved. An eligibility result showing you'll be accepted if your details check out. It's subject to final checks.

Promotional rate (0% offer). A temporary low or 0% rate on purchases, balance transfers or money transfers. See 0% Purchase Credit Cards Explained: How They Work and What to Watch and 0% purchase credit cards.

Purchase rate. The interest rate on spending, separate from the APR.

Representative APR. The APR that at least 51% of people accepted through an advert are expected to get. You may be offered a higher rate.

Revert rate. The rate a balance moves to when a 0% offer ends. See What Happens When Your 0% Credit Card Deal Ends?

Rewards points. Points, Avios or similar, earned on spending. See Avios and Airline Miles Credit Cards: How They Work in the UK and Rewards & travel credit cards.

S–Z

Section 75. Part of the Consumer Credit Act 1974 that can make your card provider jointly liable for eligible purchases between £100 and £30,000. See Section 75 Explained: Your Credit Card Purchase Protection.

Soft search. A credit check that only you can see. It doesn't affect your score and is used by eligibility checkers.

Statement balance. What you owed on the statement date. Pay this in full by the due date to avoid interest on purchases.

Summary box. The standard table of rates, fees and key terms that lenders give you before you sign.

Unauthorised payment. A payment you didn't make or agree to. Report it to your provider straight away. See Credit Card Fraud: What to Do If Your Card Is Used Without Permission (UK).

Variable rate. An interest rate that can change, for example in line with the Bank of England base rate or at the lender's discretion with notice.

Where to go next

Frequently asked questions

What's the difference between APR and purchase rate?

The purchase rate is the interest on spending. APR is a broader yearly cost that also includes certain compulsory fees, so the two can differ.

What does "representative" mean in representative APR?

At least 51% of people accepted for the card through that advert must get that rate or better. Others can be offered more.

A soft search is only visible to you and doesn't affect your score. A hard search is recorded when you apply and other lenders can see it.

What's a summary box?

A standard table setting out a card's interest rates, fees and key terms. Lenders must give it to you before you take out the card.

Is a charge card the same as a credit card?

Not quite. A charge card must be paid in full each month, while a credit card lets you carry a balance. Some protections can differ.

This is general information, not financial advice.

Sources