Cash cards allow you to use cash machines to withdraw money from your account. For
this you need a Personal Identification Number (PIN) which you must keep secret. A
debit card allows you to pay for things without using cash. You must have enough money
in your account to cover what you buy. If you lose your cash card or debit card you must
inform the bank immediately.

Credit and store cards

Credit cards can be used to buy things in shops, on the telephone and over the Internet. A
store card is like a credit card but used only in a specific shop. Credit and store cards do
not draw money from your bank account, but you will be sent a bill every month. If you
do not pay the total amount on the bill, you are charged interest. Although credit and
store cards are useful, the interest is usually very high and many people fall into debt this
way. If you lose your credit card or store cards you must inform the company
immediately.

Credit and loans

People in the UK often borrow money from banks and other organisations to pay for
things like household goods, cars and holidays. This is more common in the UK than in
many other countries. You must be very sure of the terms and conditions when you
decide to take out a loan. You can get advice on loans from the Citizens Advice Bureau if
you are uncertain.

Being refused credit

Banks and other organisations use different information about you to make a decision
about a loan, such as your occupation, address, salary and previous credit record. If you
apply for a loan you might be refused. If this happens, you have the right to ask the
reason why.

Credit unions

Credit unions are financial co-operatives owned and controlled by their members. The
members pool their savings and then make loans from this pool. Interest rates in credit
unions are usually lower than banks and building societies. There are credit unions in
many cities and towns. To find the nearest credit union contact the Association of British
Credit Unions.

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