Thinking about getting a credit card?

Credit cards can seem like a good option when the bank offers you one for the first time. But there are a few things you might want to think about before making your decision.

Consider whether you actually need one. For example, credit cards are a convenient way to pay for things online or over the phone - but they’re not the only option.

If you have trouble with temptation, a debit card could be a better solution. These can be used for the same type of transactions as credit cards, but only use money you actually have, minimising the risk of overspending.

If you decide a credit card is for you, make sure you shop around for a good deal. There are many types of credit cards offering different fees, interest rates and rewards schemes. If you’re studying you could be offered a credit card with no fees, but you’ll still be charged interest if you don’t pay in full each month.

Most cards have an interest-free period of up to 55 days. But after that time, if you haven’t paid back your balance in full, interest will start adding up. At around 18-20%, it’s not cheap. So it’s a good idea to only put on your card what you know you can afford to pay back within the interest free period.

If you think you might be tempted to overspend, get a credit card limit that’s within your budget. It’s okay to ask your bank to reduce it.

Sorted has useful information on credit cards in our new Starting out section.

We also have a Credit card calculator to help you work out the implications of credit card debt.