Credit card questions, answered

Start with one question: do you pay your balance in full each month? If yes, focus on rewards — flat cashback for simplicity, or travel points if you fly. If you carry a balance, a 0% introductory offer or a low ongoing rate saves far more than any rewards rate. Then check the annual fee against the rewards you'll realistically earn, and make sure your credit profile matches the card's stated range before you apply.

Only if the rewards and credits you will actually use are worth more than the fee. A simple test: estimate your annual spend in the card's bonus categories, multiply by the reward rate, add any statement credits you'd genuinely redeem, and subtract the fee. If the result isn't clearly positive, a no-fee card is the better choice.

There's no magic number. Many people do well with two: a no-fee flat-rate card for everyday spending and one specialist card (travel, dining or groceries) for the category they spend most on. Adding cards only helps if you can manage the due dates and keep overall utilisation low.

A debit card spends money already in your bank account. A credit card borrows from the issuer up to a limit; you repay at the end of the billing cycle and pay interest only on any balance you carry. Credit cards usually offer stronger purchase protection and build your credit history, which debit cards do not.

For most people, flat cash back (1.5–2%) is the most reliable return because every dollar, pound or euro of rewards is worth exactly that. Points and miles can be worth more — sometimes 2–5 cents each when transferred to airline or hotel partners — but only if you redeem them well. If you don't want to manage redemptions, cash back wins.

It depends on the programme. Most bank points (Chase Ultimate Rewards, Amex Membership Rewards, RBC Avion, Amex UK Membership Rewards) don't expire while the account is open. Airline miles and some co-branded programmes can expire after 12–24 months of inactivity. Closing a card can forfeit points unless you transfer them first.

In the US, bonuses earned by meeting a spend requirement are generally treated as rebates, not income, while bonuses with no spend requirement may be reported as income. In the UK, Canada and Australia, personal credit card rewards are not normally taxable. Rules differ for business cards — check with a tax professional.

APR is the annual percentage rate — the yearly cost of borrowing on the card. Interest is usually calculated daily on your outstanding balance and added monthly. If you pay the full statement balance by the due date, most cards charge no interest on purchases at all; the APR only matters when you carry a balance.

For a set period — typically 6 to 24 months — you pay no interest on new purchases (and/or transferred balances). You still have to make at least the minimum payment each month, and any balance left when the period ends is charged at the card's standard rate. Missing a payment can cancel the offer early.

The big ones are the annual fee, foreign-transaction (non-sterling / international) fees of around 2.5–3% on purchases abroad, cash-advance fees plus immediate interest, balance-transfer fees of 1–5% of the amount moved, and late-payment fees. Many cards now charge no foreign-transaction fee — worth prioritising if you travel.

Usually yes, if you can't clear the balance within a couple of months. Moving a balance from a 20%+ card to a 0% balance-transfer card (for a one-off fee of around 1–3%) can save hundreds in interest. The key is to pay the balance off before the promotional period ends and not to run up new spending on the old card.

Generally no. Most issuers — including Chase, Amex, Barclaycard and the big Canadian and Australian banks — don't allow balance transfers between their own cards. You'll need a card from a different issuer.

Premium rewards cards usually want good-to-excellent credit (roughly 700+ FICO in the US, 720+ in Canada, a 'good' Experian band in the UK, or a 'very good' Equifax band in Australia). No-fee and store cards accept fair credit, and secured or credit-builder cards are designed for thin or damaged files.

A full application triggers a hard inquiry (hard search in the UK) that can trim a few points for up to a year. One or two applications are not a problem; many in a short period are. Most issuers in the UK and some in the US and Canada offer an eligibility checker that uses a soft search and won't affect your score.

Common reasons: a score below the card's range, too many recent applications, high utilisation on existing cards, income too low for the requested limit, or address and ID details that didn't match the credit file. Issuers must tell you the main reason if you ask, and you can usually reapply after addressing it.

Yes. Canada and the US have dedicated newcomer programmes (secured cards, or unsecured cards from banks that accept no credit history with proof of status). In the UK and Australia, credit-builder cards from issuers such as Aqua, Capital One UK or lower-limit bank cards are the usual starting point. Use the card lightly and pay in full to build a file.

In all four countries we cover, your liability for unauthorised transactions is very limited — typically £0 in the UK, $0 under US network zero-liability policies, and $0–$50 in Canada and Australia — provided you report it promptly and haven't been grossly negligent with your PIN or card details.

Credit cards generally give stronger protection than debit: chargeback rights through the card network everywhere, plus statutory protection in some countries — Section 75 of the Consumer Credit Act in the UK makes the card issuer jointly liable for purchases between £100 and £30,000. Many cards add extended warranty and purchase-protection insurance.

Yes — Visa, Mastercard and American Express are accepted worldwide, though Amex is less widely accepted in some countries. The cost is the foreign-transaction fee (typically 2.5–3%) unless your card waives it, and always pay in the local currency rather than accepting dynamic currency conversion at the terminal.

Almost never. Issuers require residency, a local address and a local credit file. Expats usually need to rebuild credit in their new country; some global banks (HSBC, Amex) offer programmes that use your history from another country to help you qualify.