Keeping responsible lending and borrowing In Balance

Our credit card range is getting bigger and better, reaching more and more people. So, how can you be sure that we will lend to you responsibly, and keep within what you can afford to repay? We do it by keeping our lending responsibly In Balance with your borrowing needs throughout your relationship with us. Here are some of the controls we use to achieve that balance at every stage throughout the life of an account.

In Balance - before you open your account

See our approach to advertising, and how we tell you your personalised interest rate before you commit to applying.

• We keep our advertising honest and straightforward, giving you all the information you need to make an informed decision about whether our card meets your needs. Our Summary Box can really help.
• We give you a no obligation quote showing you the actual rate you will be offered based on your circumstances without impacting your credit rating.
• This means that if you then decide not to proceed your ability to obtain credit elsewhere is unaffected.

In Balance - when you open your account

Learn about how we use Credit Reference Agencies, and how you can pick the opening offer that best suits your needs.

• All applications are assessed carefully using independent data from Credit Reference agencies, and our own experience of lending, to ensure you get a credit limit you can afford to repay.
• We share the data in your application with Credit Reference Agencies so that other lenders know about your commitments to us, and can also then lend appropriately to you.
• You have the power to choose which introductory offer suits you best whether you plan to transfer an existing balance or use your card mainly for purchases.

In Balance - when your account is up and running

See how we manage your Credit Card to ensure our lending always meets your needs.

• We know that people’s circumstances can change, so we regularly review your account to be sure you can afford your credit limit. If we think you might be becoming stretched we may lower your credit limit to reduce any financial stress on you.
• All of our credit cards now offer some degree of commission-free purchases abroad. By helping to keep the cost of your overseas spending down you could repay less.
• We listen to your feedback so we can continually improve our lending processes. If you contact us we may call you to check you were satisfied with our service. You can be sure that we will put things right if they ever go wrong.

If you have one of our credit cards and use FlexAccount as your main current account * we may upgrade you to our new Select Credit Card. We’ll always consider if you can afford the minimum repayments before upgrading your card. (*A main current account is defined as a FlexAccount with a Visa debit card (not a cash card+) with regular monthly credits of £750 (excluding internal transfers from other Nationwide accounts)).

• We make it as easy as possible to pay your Nationwide Credit Card bill. For example, you can set up a Direct Debit, pay via the Internet Bank, or pay over the phone using your debit card.

In Balance - when you need our support

See how we manage your Credit Card to ensure our lending always meets your needs.

• Nationwide supports many debt advice and guidance programmes. Take a look on-line at www.nationwide.co.uk/money_worries if you are getting concerned about your debts. Or look at www.bettermoneyskills, developed by VISA with Citizens Advice, for help managing your finances.
• We have trained staff ready to help you in a sympathetic and positive way if you are in financial difficulty. If you are getting concerned, or are already in arrears, always call us.

In Balance - because we give you tips on borrowing responsibly

See here for ideas on how you can control your borrowing

• Do your homework - Before you open a credit card do some research and learn about its advantages and disadvantages so that you choose a product that best meets your needs. Remember there’s more to credit cards than just an introductory offer and you need to be aware of the benefits of credit cards over the longer term before you make your choice. You can find out more about our credit card benefits here.
• Don't bite off more than you can chew - Never take on more debt than you can afford. Preparing a monthly budget is a quick and easy way of ensuring you know your monthly income and costs so that you can keep track of your money.
• Before opening a credit card read and understand the credit agreement and charges - our summary box clearly sets out all the key information about our credit card.
• Try and repay as much as much as you can each month - only paying the minimum amount will take you longer to clear your debt and will cost you more.
• Make sure you don't miss your payments - this is really important as late or missed payments will incur charges. Setting up a Direct Debit is a helpful way of ensuring you never forget to pay your credit card bill. Going into arrears can damage your credit rating with us and other financial services organisations.
• Try to use your card for your purchases - taking out cash to pay for things is more expensive than purchases made directly using your card.
• Keep an eye on your credit card balance - this will help you avoid going over your limit and getting charged. If you think you might exceed your limit tell us.

For an unprecedented fourth year in a row, Nationwide won the award for 'Most Responsible Credit Card Lending Practices' at The Card & Payments Awards 2011.