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Nope! If you pay off your credit card each month in full, you'll pay no interest. You'd be surprised how many people think this!

These rules are in place to help you understand the cost of borrowing. So don’t get mad at us. But yeah, we agree: there’s room for improvement. So we’re trying to do a better job explaining what this all really means so you know exactly what you’re getting—in clear, simple terms. No surprises. Fewer angry comments online.

Good question. We get this a lot. It’s all pretty confusing. That big number you’re seeing, it’s called a Representative APR. It’s an annualised percentage that includes the interest rate and fees, and it’s designed to reflect the total cost of borrowing for a majority of people. It’s a bit of a mouthful… so here it is broken down:

1. An annualised percentage that shows the total cost of borrowing
2. That includes the purchase rate and monthly fees
3. Calculated based on what a majority of people would get
4. It's not the interest rate you'd get

Here’s an example using some imaginary numbers. Let’s say you borrow £100 with a 20% interest rate. Now, you might think that means you’ll pay £20 every month, but that’s not how it works. That 20% is annualised, meaning it’s spread out over the whole year. So if you borrow for just one month, they take that rate and turn it into a monthly one, which is about 1.5%. So, that’s £1.53 in interest, not £20.

Really can't un-see it, can you? Sorry about that.