Advance - we’ve got you.

Welcome to the Lloyds Advanced credit card, the card that can help you build your credit score to work towards your financial goals.

You get: regular tips and guidance sent directly to your inbox, along with access to bitesize videos to get you credit savvy and no foreign exchange fees when you spend abroad (interest charges still apply).

Plus, one interest rate applies – no matter how you use your card.

You can learn about managing credit responsibly, feel in control of your spending and find ways to work towards your financial goals, whatever they may be.

You can take control of your credit score too. It's a number that gives lenders a view of how you've managed credit in the past – and how likely you are to repay any future lending.

Register and regularly check yours for free in the app, get personalised tips and find your next best action to improve it.

So you can show lenders you're managing your money well.

With the app, you get access to everything on the go. View your spending to know if you're close to your limit and set controls, make payments when you're on the move and switch on app notifications, so you always know what's going on with your account.

Advance. We're here to support you every step of the way.

Get started today.

So, how does a credit card work? Unlike a debit card, which uses the money in your account to pay for things straightaway, a credit card borrows money. Credit cards are a flexible way to borrow over the short-term. So what are the potential costs involved with a credit card? Well, there are two kinds.

The first is interest, which is worked out as a percentage of the money you've borrowed; and the second is any other fees or charges for things like late payments. Everyone gets a credit limit for their card. This is the maximum amount a credit card will allow you to borrow based on your personal circumstances.

Every month, you get a statement that tells you your balance, how much your minimum payment is and the due date to pay it by. If you have no borrowing on your credit card and the balance is £0, you won't get a statement. You can see this all in the app. If you pay off the entire balance before that month's payment due date, then you won't be charged interest. However, if you choose to pay it back over a longer period or make any cash transactions, interest will be applied.

A credit card lets you change how much you pay back each month depending on your circumstances. But you must pay at least the minimum payment. So, if your budget is tight one month, you can just pay the minimum amount. Setting up a direct debit for at least your minimum monthly payment helps you stay in control. It means you don't have to worry about missing a payment by accident, And that can keep your finances and your credit score in good shape.

If you regularly pay more than the minimum, you’ll clear your balance faster and pay less interest on the amount you borrowed. Plus, your credit card comes with a safety net. Most purchases over £100 and up to £30,000 are protected under section 75 of the Consumer Credit Act. So, for example, if you bought concert tickets that never arrived, faulty tech or a travel company cancelled your plans, we may be able to help you get your money back. It's an extra reassurance with your credit card.

So how do you pay your credit card every month?

Well, that’s up to you. You have a few different options to choose from.

The first is just to pay your minimum payment. You can always make extra payments later on. But don’t forget that paying just the minimum means you’ll pay interest and it’ll take you longer to pay off your balance.

The second is to pay off more of your balance. You have the flexibility to adjust the extra amount you pay each month to fit your budget. By paying more than the minimum, you’ll reduce your balance more quickly. This can also help you save money on interest.

The third is to clear your full balance every month. Paying off your credit card balance every month means you’ll avoid being charged interest on purchases, but you’ll still be charged interest on any cash transactions.

The best way to pay your credit card is by using a direct debit. That means you can set it and forget it. So you don’t accidentally miss a monthly payment. A direct debit can help you avoid late payment fees and any impact to your credit score. And you can choose how much you want to pay, and a payment date to suit you.

And you can mix and match your options. For example: It’s a good idea to have a direct debit set up to pay at least the minimum payment. Then if you’ve got money left over, you could pay more. You can do this online or by using the app.

Remember, if you make an extra payment, we may still collect your direct debit in full. So overall, paying a bit extra can help bring your balance down faster.

And that’s how you pay your credit card.

Fraud is big business.

With scams on the rise and fraudsters after your details and your money,

here’s how to stay safe.

If you get a call out of the blue, it could be a scam.

Fraudsters may call pretending to be someone you trust, like your bank.

They’ll often sound professional and seem like they want to help you.

They may want you to act straight away.

If you’re not sure who you’re speaking to, hang up.

Don’t give away any personal details.

And definitely don’t transfer any money.

Calling 159 will let you know if it really was your bank that called you.

We’ll never, ever send you a link asking for personal or account details via SMS or a message platform like WhatsApp.

Fraudsters may copy a reputable sender’s address and even add their message into a chain of previous messages.

Remember, if you do click on a link from a message and it takes you to a login page, never enter your login details. It may look like a genuine website, but actually it’s a clever copy and this fraudster is after your personal information.

Unfortunately there are lots of scams out there, including ones on social media.

Knowledge is power.

And when you know what to watch out for, you can protect yourself from fraud.

Go to our fraud hub to see common scams and how to avoid them.

Most credit cards come with an interest rate.

So what is interest?

Well, using a credit card is borrowing money to pay for something now that you pay back later.

But if you don't pay back the full balance every month then you'll be charged interest.

Interest is worked out as a percentage of what you’ve borrowed. And it shows how much extra money you'll pay over a certain amount of time. Let's see how that works...

When you spend on your credit card, you've borrowed money.

And if you pay back that money by your payment due date then you won't be charged interest.

But if you only pay back the minimum amount or part of what you owe every month, or make any cash transactions, then interest is added.

The higher the interest rate, the more interest there is to repay on your borrowing.

It's important to remember that this interest is just the percentage of the money you've ‘borrowed’.

It doesn't include any fees or other credit card charges like late payments or charges for cash withdrawals.

That's where APR comes in.

Find out what APR means in the next video.

Interest for a credit card is often shown as APR. and APR stands for Annual Percentage Rate, which is used to calculate what you pay on your borrowing. APR includes the interest plus any credit card fees.

So APR gives you a better picture of how much you could pay for your borrowing over a year.

Think of it like this...

When you use a credit card, the APR tells you the cost of borrowing money. The higher the APR rate, the more you'll pay for borrowing.

You could be charged extra fees if you withdraw cash or make a late payment.

That's why it's really important to set up a direct debit to make at least your minimum payment every month.

This helps you stay in control.

What is a Credit Score?

A credit score is an important part of borrowing money.

When you apply for things like a credit card or a loan, lenders look at several factors to decide if they can lend to you responsibly.

And that includes your credit score.

A good credit score usually means: you've managed your accounts carefully, made payments on time, and kept well within your credit limit.

When your score is higher, lenders are more likely to offer you credit potentially with lower interest rates, and higher credit limits.

Credit reference agencies hold key information about you and your financial history.

They use data from public records and lenders to understand more about your credit history.

Your credit score can go up or down.

And there are ways you can help move it up, and reasons why it might go down.

If you’ve maxed out your credit limit or missed payments, or if you've applied for multiple credit products at once.

A healthy credit score can open doors to better borrowing rates and help you achieve your goals, like getting on the property ladder or finance for a new car.

And, that's why your credit score matters.

Know the score

Check Your Credit Score

Check yours for free in the app.

5 simple steps.

1. Log on to our Mobile Banking app
2. Find Your Credit Score in the ‘Borrow’ tab
3. Register to check your score
4. View your TransUnion credit report
5. Explore the tools available

Register on our app.

Credit score data is powered by TransUnion. Your Credit Score is available to UK Residents age 18 or over and registered for Internet Banking. Credit report access is subject to T&Cs.