Cards FAQ

Credit cards explained

A credit card gives you the freedom to buy things now and pay later.

A credit card is a form of borrowing. If your application is accepted, we will set you a credit limit for your card - this is the amount you can borrow and use on your credit card.

You will be sent a statement each month showing

  • how much you have spent;
  • the amount that you have to pay back; and
  • the date by which this needs to be paid

Interest is charged on any money you still owe (the outstanding balance) after this date.

  • Credit card pricing explained

    Credit cards are different from other credit products like loans and mortgages, because you can borrow and repay when it suits you, over many years.

  • What is an interest rate?

    This is the actual rate at which interest is charged, expressed as a percentage of the amount borrowed.

  • What is APR?

    The Annual Percentage Rate shows you how much you will be charged in a typical year when you borrow money through a credit card, loan or mortgage.

    It includes all fees and other charges as well as just interest.

    We are required to state the APR in advertisements, allowing you to compare rates.

  • How is the interest rate set when a credit card account is first opened?

    Rates vary between card types but all Danske credit card holders enjoy the same rate for any particular card.

  • Where can you look to find out your interest rate?

    We produce a Summary Box for each of our cards in order to make the credit process as transparent as possible for you. The APR in each Summary Box is based on a sum of £1,200 borrowed over 12 months.

  • Will the interest rate on your card account vary depending on how you use it?

    Not with a Danske card, no. We charge a single, flat rate irrespective of whether you have made a purchase or cash withdrawal.

  • Why do interest rates change over time?

    Interest rates can go up or down, reflecting changes in the cost of providing credit, economic conditions and the risk that some customers may not be able to repay.

    If we do increase your interest rate, we’ll give you at least 30 days’ notice.

    If this happens, you will have 60 days to close the account and repay the remaining balance at the existing rate of interest.

    We may also give you the option to transfer your balance to an alternative Danske product at the existing (or lower) interest rate.

    Except in exceptional circumstances, for example where there are sudden changes in the economy, we will not increase our credit card interest rates more often than every six months.

    You will of course also see a change if your promotional interest rate comes to an end.

  • Does a change in an interest rate just apply to any new spending?

    No, changes will apply to the whole of any outstanding balance.