You can apply for a credit card from most banks, building societies and some high-street stores. Read the information you’ll get to help you shop around.

They will do a credit score on you to check your ability to repay any credit they offer you. You usually need to be 18 or over to apply for a credit card.

By law, firms offering goods or services on credit or lending money to customers must be licensed by the Office of Fair Trading (OFT). It requires certain credit and hire agreements to be set out in a particular way and to contain certain information.

Offering credit without a licence is a criminal offence, which can result in a fine and/or imprisonment.

The credit card company will give you information, usually in the form of a summary box, listing the main features of the credit card being offered to you.

This will include information such as:

You will also be given a copy of the full terms and conditions. If you are unsure of how the card works you can ask the issuer to explain.

Before you choose any credit card, shop around. Although they all work on the same principle, they offer different interest rates and have different incentives, such as 0% interest for a limited period, reward points and other benefits. Use the APR to help you shop around and compare deals. But also check whether rates and charges differ according to how you use the card. The APR for a credit card is calculated on the assumption that you use it only for purchases. It takes account of the interest charged on purchases and other charges, for example an annual fee. But it doesn’t take into account any introductory interest rate or the costs of balance transfers or cash withdrawals.

Generally, the lower the APR, the better the deal. But don’t just look at the APR – check the interest rate and charges that apply to how you want to use the card, for example making purchases or transferring a balance. If you intend to repay the balance in full each month, a higher interest rate won’t matter, but you may still have to pay charges. Consider if a high APR is worth any incentives you may receive, such as reward points on loyalty schemes or cashback on the purchases you make. And check how your payments will be allocated to your balance. These will usually be set out in the summary box – see Allocation of payments.

Be careful not to apply for a credit card until you have decided on the best deal for you, as this may affect your credit score – see Credit scoring.

Making purchases during a 0% introductory period is the cheapest way of borrowing. This may help when you have to make large purchases in a short time. If you want to avoid paying interest, make sure you remember when the introductory period ends and plan how you will be able to afford to clear the balance in good time.

And remember, applying for several credit cards within a short period can damage your credit score.

For useful information about borrowing see the Money and Credit section of the Consumer Direct website – see Related links.

You may be able to transfer a balance you owe on one credit card to another card. This could save you money if the new card has a lower interest rate. But check if you will have to pay a one-off balance transfer fee.

Make sure you find out all the costs of a card before transferring your balance and check the interest rate that will apply once an introductory period has ended.