Rates, fees and charges explained

There are a number of specific terms that are used to refer to interest rates, fees and charges on your Bank of Scotland credit card account. We've put together a handy guide to explain these terms and how they apply to your credit card.

Credit card interest rates


There are three types of interest rates that apply to your Bank of Scotland credit card:

  • Promotional rates on balance transfers, money transfers and purchases
    This can include interest free periods or a low interest rate for a set period of time. Fees may apply on balance transfers and money transfers. To keep any promotional rate you'll need to make the minimum payment on time each month and stay within your credit limit.
  • Up to 56 days interest free on purchases if you make your payment in full by your payment due date
    If you don't make your payment in full then standard interest rates apply from the date of the purchase until the balance is paid in full.
  • Standard interest rates for balance transfers, money transfers, cash advances and purchases
    Standard interest rates apply on balance transfers, money transfer, cash advances and purchases once a promotional period has ended. If you're unsure what interest rate you're being charged please refer to your credit card terms and conditions.

Credit card fees


Credit Card fees can vary. If you are unsure you can find details in Bank of Scotland credit card terms and conditions.

These are the most common type of credit card fees:

  • Balance transfer fee
    Transferring an existing balance from one credit card or store card to your Bank of Scotland credit card
  • Card processing fee
    Some companies may charge a fee for using your credit card, for instance gambling transactions, buying postal orders or prize competition entry fees
  • Cash advance fee
    Withdrawing cash from a cash machine can apply fees to your credit card
  • Money transfer fee
    Transferring money from your credit card to one of your existing UK current accounts
  • Using your card abroad
    You may be charged additional fees and interest for making non-sterling transactions or buying non-sterling currency.

Credit card default charges


A default charge of £12 may be applied to your credit card account. You will be notified of any charges due to be applied to your account on your monthly statement.

These are the most common types of default charge types:

  • Credit limit fee
    If you go over your credit limit at any point during your statement period
  • Late payment fee
    If you do not make at least the minimum payment to us by the due date requested on your statement or miss a payment
  • Returned payment fee
    If you make a payment to us that we are unable to process, this includes a rejected direct debit, cheque with insufficient funds or any other returned payment.


What does APR mean?

APR stands for 'Annual Percentage Rate' and is a figure that includes all fees, charges and interest rates associated with your credit card. APR is a representative figure and it allows you to quickly compare credit cards.

What does purchase rate mean?
When you use your credit card to buy things, you will be charged interest on your purchases (outside of any introductory offer periods). If you pay off the outstanding balance of your credit card each month, you would not be charged purchase rate interest.

What is a credit limit?
Your credit limit is simply the maximum amount of money available for you to spend on your credit card. Your credit limit will be based on your current circumstances when you apply for the credit card account. You must not go over this limit.

What is a cash advance?
A cash advance includes; withdrawing cash from a cash machine, buying non-sterling currency and gambling. Interest on cash is charged daily from the date of the withdrawal, whether you pay the balance in full or not. Fees and interest rates apply.

What is a money transfer?
A money transfer lets you transfer money from your credit card to any of your own UK current accounts. You can benefit from a promotional interest rate on the transfers you make, but a transfer fee may apply. It will form part of your credit card balance and is subject to repayments as part of your monthly statement balance.

Get help with money worries


There are things you can do if you're starting to experience money worries, talk to us.  We're here to help and support you manage your finances. 

You may need support from us if:

  • You're personal circumstances have changed, for instance if you've been made redundant or you're dealing with a long term illness. 
  • You're behind with payments or worrying about paying bills. 
  • You're using your overdraft up to the limit on a regular basis.

Making sure you get a fair deal


We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.