Which credit card is best for me?

There are lots of UK credit cards to choose from, many offer special deals, and even 0% interest to new users for a period of time. The best credit card for you will depend on how you use your card. 

If you don't pay off you bill each month, you'll want a credit card with a low standard rate of interest, or a card offering a 0% introductory offer. If you do pay your bill off in full each month, the interest rate will not be an issue as you won't be paying interest, instead the perks or rewards for using the card will be the main factor.

Compare

Through this website you can compare credit cards from all the leading banks and finance companies and apply online.

Balance Transfers

Credit cards can be an expensive way to borrow if you leave a balance outstanding month after month. If you are paying off an existing credit card debt accumulating interest at 6% or above, it is worth switching the debt to a credit card offering no interest for a limited time. This will give you the chance to knock off all or a sizeable chunk of the debt without accruing any interest charges. 

There are many 0% credit cards available offering introductory interest free rates for a specified number of months. Look out for cards with the longest 0% deal possible, but watch for hidden charges when transferring a balance as an increasing number of cards now charge a 2% handling fee. It's also important to note that the 0% interest only applies to the balance transferred and not normal spending.

Rate Tarts

If you have not fully paid off your debt when the introductory period comes to an end, it might be possible to move any remaining balance to another card offering a 0% deal. People who do this are known as 'rate tarts' and in the UK there is a growing army of people who constantly move from one card to another when their 0% deal ends. 

Being a rate tart is a good way to save money on interest charges, but only if you’re good at it! If you are willing to change cards every six to nine months and have a good credit rating, rate tarting may be a good option for you.

Life of Balance Transfer Offers

However most people are better off avoiding the need to switch cards every few months and instead should move credit card debt  to a card offering a long term permanent rate. Cards such as Sainsbury's Bank Standard will give you a low fixed rate of interest for transferring a balance, meaning you will be charged the low rate until your debt is completely paid off. 

New Purchases

If you've got a major purchase to make such as a new car or holiday, a 0% credit card gives you ability to spread the cost over a few months. A card offering an intro 0% rate for purchases would provide you with the equivalent of a short term interest free loan.  However, if you are going to use a card like this, to fully benefit you need to make sure you do pay the money back over the interest-free period - ideally, set up a monthly direct debit.  You should look out for catches - if you make a late payment or exceed your borrowing limit, you'll lose the 0% rate and go onto its standard rate instead - which usually ranges from 13.9% to 24.9% depending on your credit rating. 

Cashback

With a cashback credit card, you get money back based on how much you spend on it - usually credited to the card on the anniversary of taking it out.  Recently many providers have reduced the amount they give you back. The most generous deals are currently offered by American Express & Morgan Stanley.