Working Together
Sharing responsibility for managing your credit card account
When used responsibly a credit card is an excellent way of managing your day-to-day finances. By Working Together with you from opening your account, agreeing your credit limit and through the everyday management of your account, we can ensure that Nationwide is a responsible lender and that you benefit from your credit card.
Why have a credit card?
Here are the benefits and potential risks associated with having a credit card. These will help you decide if a credit card is the most appropriate way for you to borrow.
Benefits | Risks
Benefits:
- A credit card is useful if you only make purchases as they will be interest-free as long as you always pay your balance off in full by the date specified on your monthly statement.
- A credit card provides you with a secure and convenient way to pay for goods online or by phone both in the UK and abroad.
- You can use your credit card to pay for goods and services at 24 million outlets worldwide. With a Nationwide credit card you benefit from commission-free purchases abroad* that could save you money.
Risks:
- If you make only the minimum repayment on your credit card each month it could take you longer to pay off the amount owing compared to other ways of borrowing.
- If you don't manage your credit card spending each month it could result in your balance spiralling out of control.
- You could incur charges if you fail to make a payment, miss your payment date or go over your agreed credit limit.
* We pass on a Visa charge for foreign transactions made outside the Visa Europe region.
Opening an account
When looking for a credit card it is important that you look at all the benefits it has to offer and not just the introductory offer. You need to know the short and long term benefits before choosing a credit card.
What we will do | What you can do
What we will do:
- We will be open, honest and transparent with you.
- All our communications will be fair, clear and not misleading.
- We will always provide you with accurate and up-to-date information about your Nationwide credit card and what it will cost. This will allow you to make informed decisions and help you to control your borrowing.
What you can do:
- Ensure that a credit card is the right choice for you. Credit cards are convenient for short-term borrowing but if you plan to have a large outstanding balance for a long period of time, talk to us about a personal loan – it could help you control your debts.
- Make sure the credit card you select meets your needs. A Nationwide credit card offers you a great package of benefits that could help you save money.
- If you are already experiencing financial difficulties talk to your existing lender before applying for a new credit card account.
Your personal credit limit
When you take out a Nationwide credit card, or request a new credit limit, we will assess your circumstances and agree a suitable credit limit with you. We always assess your ability to repay your credit limit to ensure that it is affordable for you. We use credit reference agencies to help us and regularly check with them to see if your limit needs adjusting to help you avoid future debt problems.
What we will do | What you can do
What we will do:
- We will ensure your credit limit is affordable for you.
- We will listen to you if you want to increase or decrease your credit limit. Credit limit increases need to be requested and will be assessed based on your personal circumstances.
- We will share information on your account with credit reference agencies. This allows other lenders to see your commitment with us and to therefore lend to you responsibly.
What you can do:
- Check your balance regularly online or at a cash machine so that you don't exceed your credit limit and incur any additional charges. Talk to us first if you think you might exceed your credit limit
- Never take on more debt then you can afford – prepare a budget each month to help you keep track of your income and costs.
- Always ensure that you make your repayments on time as late or missed payments could have an adverse effect on your credit rating and could result in you incurring a charge.
Day-to-day management
A Nationwide credit card is a great way of managing your day-to-day spending when used responsibly. If you use your credit card to only make purchases and you pay off the outstanding balance by the due date shown on your statement we won't charge you interest on purchases. We charge interest on cash advances and balance transfers from the date of the transaction until you repay everything you owe.
What we will do | What you can do
What we will do:
- Positive order of payments means unlike most other credit card providers, we pay off your debt being charged at the highest interest rate, before that charged at a lower interest rate. This could save you money.
- We will protect you against fraud. With active account monitoring we are able to look at how your card is being used and if we see anything suspicious we will contact you immediately.
- We will give you various ways to pay your credit card bill - by Direct Debit, online or in one of our branches. By setting up a Direct Debit you can pay either your full balance, the minimum amount, or even a fixed sum each month, to help you budget more effectively.
What you can do:
- Always check your monthly statement so that you know exactly how much money you owe, what your interest rate is and what repayments you need to make.
- Remember that payments take time to reach your account. You should always make sure that you plan ahead to guarantee your payment reaches your account by the due date so you don't incur late charges.
- Try to repay as much as you can each month as by just paying the 'minimum amount' will take you longer to clear your balance and cost you more.
- Avoid making gambling transactions or cash withdrawals (2.5% min £3 charge applies) on your credit card as these transactions are charged at a higher cash interest rate.
And finally
If you are ever in financial difficulty with your Nationwide credit card we will treat you sympathetically and positively. It's not in your interest or ours to let the amount you owe spiral out of control. There are many ways we can help you, but you need to talk to us sooner rather than later.
Talk to us, we will listen.
For the third year running, Nationwide has won the award for the 'Most Responsible Credit Card Lending Practices' at The Card Awards 2010.