How do Credit Cards work?​

What is a Credit Card?

Offering a convenient way to make worldwide purchases (Transaction fees may apply), a Credit Card provides a line of credit that you pay back each month, or at a later date agreed with your lender. As well as offering financial flexibility, American Express Credit Cards allow you to earn rewards as you spend.

Different types of Credit Cards

• Rewards Credit Cards. Earn more points and redeem them for a wide range of retail and travel purchases.

• Cashback Credit Cards enable you to earn cash rewards with everything you buy.

• No Annual Fee Credit Cards offer you benefits without paying a yearly charge for their services

• Avios Credit Cards. Collect Avios on your everyday purchases and redeem them for holidays, upgrades and more.

• Travel Credit Cards. Travel protection and lounge access are only a few of the additional travel benefits that this type of Card offers.

• Premium Credit Cards help you earn more rewards faster and enjoy travel benefits and special events

• Hotel & Retail Credit Cards. Earn hotel and retail rewards or loyalty points and redeem them at one of your favourite shops.  

Discover more about the different types of Credit Cards at American Express.

How does a Credit Card work?

When your application is approved, subject to lending criteria, your Card provider grants you a short-term credit limit. As a Cardholder, you’re then able to spend up to this limit and, after an agreed period, you’ll receive your statement with the amount you need to repay.

You’ll need to repay at least the minimum repayment amount to avoid late payment fees and prevent a negative mark on your credit score, but interest will be applied to any amount outstanding. If you pay off the bill in full each month, you won’t pay interest on anything you’ve borrowed.

Read more on how to pay off your American Express bill here.

Advantages of a Credit Card

When used wisely, an American Express ® Credit Card could boost your spending power and provide multiple benefits, such as:

• Financial flexibility. Our Cards can boost your spending power, allowing you to spread the cost of big purchases over monthly instalments, offering flexibility and convenience whenever you need it.

• Rewards, like cashback and airline miles. Pay with your American Express Card to earn cashback or reward points on eligible purchases and spend them on travel benefits or other special experiences and events.

• Purchase protection. Account and fraud alerts, as well as refund protection are just a few of the advantages that American Express Cards offer to keep your account safe. Terms and Conditions apply.

• Improved credit score. Use your Card responsibly, ensuring you make all repayments on time, to build your credit rating and secure better loan deals.   

Keeping on top of your account is key to making the most of these benefits. Missed payments and neglected accounts could result in disadvantages such as:

• The possibility of debt. Make sure you can afford to pay back what you borrow, to avoid high interest rates and debt that you’re unable to pay off.

• A negatively impacted credit score. Missed payments can lead to additional charges that’ll hurt your ability to borrow money.

• Additional fees and charges could result from missing payments, exceeding your credit limit, or withdrawing cash.

Read more on the potential advantages of Credit Cards here.

How to use a Credit Card

Choose a Card that works for you and your lifestyle and use it wisely to cover your needs. Made a big purchase and want to spread the cost? Your Card is a flexible and convenient way to do so, while you can also benefit from the reward points you earn every time you shop.

However, to enjoy American Express® Credit Cards benefits to the fullest, try to pay your balance in full. This will help you avoid interest and late payment fees and keep your monthly payments lower. Setting up automatic repayments can be a good way to stay on top of your finances.

Find out more about Direct Debit.

What information is on a Credit Card & what does CVV mean? 

Your Cards contain important information that you’ll need to provide when making online purchases, logging into your account, or creating a digital wallet.

• Credit card number is the 15-digit number that you’ll find at the front of your Credit Card.

• Expiration date displays the month and year your Card will need to be replaced, as it will no longer be valid.

• Cardmember name is usually the initial of your first name, and your last name. This should match your ID.

• Card Verification Value (CVV) is the four-digit number printed on the front of your Card and offers you extra security every time you make transactions.

• Customer service number: Our UK and international contact numbers appear on the back of your Card and enable you to easily reach to our experts who are available 24/7. 
  

How to know if you're eligible

Interested in applying for an American Express® Credit Card? Check your eligibility with our quick pre-application form to see the likelihood of you being approved for our Cards before you apply.

We’ve partnered with Experian who will carry out a check on your credit file; it won’t leave a mark on your credit rating, but it will inform us of your eligibility. Simply enter a few personal details and you’re done.

Find out more and check your eligibility here.

Find a Credit Card that suits your needs

Browse our Credit Cards and Charge Card to find the right one for you. Read up on Credit Card fees here.