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.
Through this website you can compare credit cards from all the leading banks and finance companies and apply online.
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 for balance transfers 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.
If you've got a major purchase to make such as a new car or holiday, a 0% purchase 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
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.
Some providers offer up to 5% for a limited period.
There are a number of reward cards where you can earn points whenever the card is used and the points can be exchanged for shopping vouchers, flights, travel or admission to attractions.
You should only consider these if you can pay off the outstanding balance straight away and you're more likely to get accepted if you have a "perfect" credit history.