What is a representative example?

When you’re looking for the right credit card, there are all sorts of things you’ll need to consider. You might be wondering which card will suit you and which APR will work with your current financial circumstances – which is where the representative example can help.

Introduced in February 2011, a representative example is what all providers must now offer in adverts for loans and credit cards. It’s designed to give the consumer a clearer idea of exactly what interest rates they can expect and should help them make an informed decision should they decide to apply for what is on offer.

So nowadays, when you see an advertisement for a credit card you’ll also see this representative example, which contains a few different pieces of information as standard. Firstly, it will feature the interest rate – whether based on a fixed or variable percentage – and also the APR which must be based on what a minimum 51% of customers could expect to be accepted for. Finally, the example would detail any fees or charges (other than default fees) that might be incurred by using the card, so the consumer can build a clearer picture of how using it on a day-to-day basis would work within their budget.

The idea behind the representative example is to make sure everyone has access to the necessary information about the cost of the credit before making a final decision on whether the product they are thinking about is suitable and affordable. At MBNA, we know choosing a credit card is an important step and so we do everything we can to ensure things are made easier for people looking to compare credit cards online to get the best deal they can. The representative example, which was introduced as a result of the EU wide Consumer Credit Directive, helps us make sure this level of clarity is maintained.

MBNA offers a host of great credit card options and when you compare these online you’ll be able to see the representative example. We also have a number of guides you can read that explain the different terms, rates and fees associated with our credit cards. If you are looking at rewards credit cards that come with extra incentives or benefits, we can also advise you on the different programs we have available. So why not check out our range of credit cards today and see if we have an option to suit you?

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