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APR, interest rates and fees explained
It’s easy to be confused by the different interest rates and fees that can be charged to your credit card account. Below, we’ve listed the terms you’re likely to see and explained what these rates and fees mean for you.
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Glossary |
Description |
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Glossary APR |
Description APR stands for annual percentage rate. It tells you how much it’s likely to cost you to borrow money over one year. You'll see it as a percentage. It’s not just about the interest you’ll pay. APR factors in both interest and any fees that are automatically charged to your account. This gives you a good idea of the overall cost and is useful if you’re comparing credit cards. Read our guide to find out more about APRs. |
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Glossary Credit card interest rates |
Description Interest is the cost of borrowing money. The amount of interest you’ll pay is worked out as a percentage of the money you borrow – this percentage is called an interest rate. Interest is calculated daily and charged to your credit card statement when it's produced each month. To see when interest is not charged, please see your Terms & Conditions.
Interest rates can vary depending on how you use your credit card. There are four types:
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Glossary Promotional rates |
Description A promotional rate is a low or 0% interest rate offered for a set period of time. When this period ends, the standard rate will take its place. Promotional rates can be offered on balance transfers, money transfers and purchases. These offers can save you money but look for what suits you and check if fees apply. For example, you may still get charged a fee for a balance transfer that has a 0% interest rate. On the transactions pages of your PDF or paper statement there is a breakdown of your balance and the interest rates that apply. If any of your balance has a promotional or introductory interest rate the expiry dates will also be shown there. |
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Glossary Credit Card Fees |
Description Fees are charged to your credit card as either a percentage of a transaction or as a default charge of £12. Here are the most common types of fee you’ll see on Bank of Scotland cards Transaction fees
Cash transaction feeWhen using your credit card or card number, a cash transaction fee may apply for:
Default charges
Have you had a default charge? |
Money worries? We’re here to help
If you’re struggling to make your credit card payments, please let us know.
Our trained advisers can give you guidance on paying off your credit card debt. We can talk to you about payment options and we may be able to offer a more affordable plan based on your personal circumstances.