Our Pick Of The Best Credit Cards
When used to your advantage, credit cards offer a convenient and flexible way to borrow money and/or manage your spending. But there’s no one-size-fits-all. Credit cards come in a raft of different guises and choosing the best for your needs can make a huge difference. So where to start?
We’ve carried out some research (August 2024) into the main card categories and listed what we found to be the most competitive deals in each, below. Bear in mind however, that these cards are ‘best case scenario’. You may be offered less favourable terms according to your credit score and circumstances.
Why you can trust Forbes Advisor’s ratings
Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate product providers, so all companies and products are measured equally. You can read more about our editorial guidelines and the methodology for the ratings below.
- Market-wide survey of leading credit card companies
- Rigorous assessment of card features and benefits
- Thorough analysis of pros and cons.
- Featured Partner
- Our pick of the best credit cards
- Cashback Credit Cards
- Rewards Credit Cards
- 0% Purchase Credit Cards
- 0% Balance Transfer Cards
- 0% Money Transfer Cards
- Travel Credit Cards
- Credit Builder Cards
- Low APR Credit Cards
- How to choose the best credit card for you
- How to apply for a credit card; step-by-step guide
- Types of credit card
- Pros and cons of credit cards
- Can I get a credit card with bad credit?
- How are the cards ranked?
Featured Partner Offers
1
American Express Preferred Rewards Gold Credit Card
New Cardmembers earn 20,000 Membership Rewards® points when you spend £3,000 in your first three months of Cardmembership
1 point for every £1 spent on purchases
At an assumed credit limit of £1,200, at a purchase rate of 31% p.a. (variable), the representative APR is 88.8% (variable)
2
M&S Purchase Plus Credit Card
0% interest on purchases for up to 20 months
0% on balance transfers for up to 12 months (3.49% fee)
Representative Example: At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
Our pick of the best credit cards
Cashback Credit Cards
Get a percentage of everyday purchases made with these cards paid back into your account, with cashback paid monthly or annually.
Amex® Cashback Everyday Credit Card
Ongoing Rewards/ Cashback
0.5% cashback on spend up to £10,000
1% cashback on spend above £10,000
Welcome Bonus
5% cashback (up to £125) in first 5 months
Annual fee/ Representative APR (variable)
£0/31%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 31.0% p.a. (variable), the representative APR is 31.0% (variable). Credit available subject to status.
Ongoing Rewards/ Cashback
0.5% cashback on spend up to £10,000
1% cashback on spend above £10,000
Welcome Bonus
5% cashback (up to £125) in first 5 months
Annual fee/ Representative APR (variable)
£0/31%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 31.0% p.a. (variable), the representative APR is 31.0% (variable). Credit available subject to status.
This card from American Express is the top cashback payer that doesn’t charge an annual fee.
New Cardmembers also get 5% cashback on purchases (up to £125) for their first five months of Cardmembership. (T&Cs apply, 18+, subject to status).
After that, it pays 0.5% cashback on spending up to £10,000, and 1% cashback on spending above £10,001. Cashback is paid into your card account annually.
With an representative APR of 31% (variable), you’ll need to clear your balance every month to get the most from this card.
It comes with the regular Amex benefits, such as Global Assist for foreign travel and discounts at selected retailers.
- No annual fee
- Unlimited cashback
- Shopping perks and global travel assistance
- Won’t get bonus rate if held Amex card in last 2 yrs
- Cashback earned at lower rate on spending below £10,000 per year
Welcome Bonus
Amex® Cashback Credit Card
Ongoing Rewards/ Cashback
0.75% cashback on spend up to £10,000
1.25% cashback on spend above £10,000
Welcome Bonus
5% bonus cashback (up to £125) in first 3 months of Cardmembership
Terms Apply. 18+, subject to status.
Annual fee/ Representative APR (variable)
£25/36.7%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 31% p.a. (variable), the representative APR is 36.7% (variable). Credit available subject to status.
Ongoing Rewards/ Cashback
0.75% cashback on spend up to £10,000
1.25% cashback on spend above £10,000
Welcome Bonus
5% bonus cashback (up to £125) in first 3 months of Cardmembership
Terms Apply. 18+, subject to status.
Annual fee/ Representative APR (variable)
£25/36.7%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 31% p.a. (variable), the representative APR is 36.7% (variable). Credit available subject to status.
With a 0.75% cashback rate applied to all spending up to £10,000 increasing to 1.25% for spending over £10,001, this is the top cashback card for bigger spenders. However, it should be offset against the card’s £25 annual fee.
If you’re a new American Express customer – meaning you haven’t held an AmEx card in the last 24 months – this card offers 5% cashback for your first three months, up to £125.
Along with this card, you’ll get the regular Amex benefits, such as Global Assist for foreign travel and discounts at selected retailers.
- Top cashback rates
- Unlimited cashback
- Shopping perks and global travel assistance
- £25 annual fee
- Won’t get intro rate if held Amex card in last 2 yrs
Rewards Credit Cards
Earn points on everyday spending made with these cards, which can be converted into vouchers or discounts at various retailers.
Welcome Bonus
American Express Preferred Rewards Gold Credit Card
Ongoing Rewards
1 point for every £1 spent on purchases
2 points for every £1 spent directly with airlines or in a foreign currency, 3 points for every £1 spent at American Express Travel
Welcome Bonus
Earn 20,000 bonus points when you spend £3,000 in the first 3 months of Cardmembership
Terms Apply. 18+, subject to status.
Annual fee/ Representative APR (variable)
£195 (£0 in first year)/ 88.8% (variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 31% p.a. (variable), the representative APR is 88.8% (variable). Credit available subject to status.
Ongoing Rewards
1 point for every £1 spent on purchases
2 points for every £1 spent directly with airlines or in a foreign currency, 3 points for every £1 spent at American Express Travel
Welcome Bonus
Earn 20,000 bonus points when you spend £3,000 in the first 3 months of Cardmembership
Terms Apply. 18+, subject to status.
Annual fee/ Representative APR (variable)
£195 (£0 in first year)/ 88.8% (variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 31% p.a. (variable), the representative APR is 88.8% (variable). Credit available subject to status.
This card is based around reward points called Membership Rewards®.
Until 16 July, there’s also a welcome bonus of 20,000 Membership Rewards ® points when you spend at least £3,000 within your first three months of membership. The bonus is exclusive to new customers, meaning you haven’t held a personal American Express card within the past 24 months (18+, subject to status).
Then collect Membership Rewards® at various rates depending on what you are purchasing – you’ll earn points faster for travel-related spending for example.
You can use your Membership Rewards® in a number of ways, such as to make purchases at selected retailers, including Amazon and Ticketmaster or transfer them to a participating airline loyalty schemes such as British Airways Executive Club and Virgin Atlantic Flying Club. Or you can swap them for Nectar points.
If you ‘invite a friend’ who is approved for the card, you can earn at least 6,000 bonus membership rewards points – up to 90,000 points a year.
Read more about the American Express Preferred Rewards Gold Credit Card.
- Fee waived for first year
- Good for frequent travellers
- Airport lounge access
- Annual fee of £195 (free in first year)
- Can take up to a month to receive bonus points
- Won’t get bonus rate if held Amex card in last 2 yrs
Asda Money Credit Card
![Asda Money Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/05/Asda-Money-Credit-Card-1.png)
Ongoing Rewards/Cashback
1% cashback in Asda Pounds for Asda spend/0.3% elsewhere
Welcome bonus
5% of Asda spend back in Asda Pounds for first 90 days (max £50)
(open card account by 15 July. T&Cs apply)
Annual fee/Representative APR (variable)
£0/27.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 27.9% p.a. (variable), the representative APR is 27.9% (variable). Credit available subject to status
![Asda Money Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/05/Asda-Money-Credit-Card-1.png)
Ongoing Rewards/Cashback
1% cashback in Asda Pounds for Asda spend/0.3% elsewhere
Welcome bonus
5% of Asda spend back in Asda Pounds for first 90 days (max £50)
(open card account by 15 July. T&Cs apply)
Annual fee/Representative APR (variable)
£0/27.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 27.9% p.a. (variable), the representative APR is 27.9% (variable). Credit available subject to status
Regular Asda shoppers will get the most out of the rewards on offer with this card. There is currently an introductory bonus offer of 5% cashback in Asda pounds for 90 days after taking out a card (max £50 benefit). The offer is available for customers who open a credit card account by 15 July.
Ongoing rewards amount to 1% of your Asda shopping spend back in ‘Asda Pounds’ for every £1 spent in Asda stores and 0.3% back on all other spending on the card.
- Earn Asda Pounds back on all card spend
- 5% cashback intro offer (only until 15 July)
- No annual fee
- No balance transfer or other 0% offers
- Relatively high APR
John Lewis Credit Card
![John Lewis Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/08/cc-card-wide-centred-555x240-1-e1717675196224.png)
Ongoing rewards/cashback
Five points per £4 spent in John Lewis/Waitrose, one point per £4 spent elsewhere
Welcome bonus
2.5% back as points towards vouchers on eligible spend in stores in the first 60 days
Annual fee/Representative APR (variable)
£0/28.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status
![John Lewis Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/08/cc-card-wide-centred-555x240-1-e1717675196224.png)
Ongoing rewards/cashback
Five points per £4 spent in John Lewis/Waitrose, one point per £4 spent elsewhere
Welcome bonus
2.5% back as points towards vouchers on eligible spend in stores in the first 60 days
Annual fee/Representative APR (variable)
£0/28.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status
The John Lewis/Waitrose Partnership credit card is offering a 2.5% cashback bonus in John Lewis points, which go towards vouchers, on eligible card spend in the first 60 days of account opening.
After the special offer shoppers can earn five points per £4 spent at John Lewis or Waitrose, and one point per £4 spent elsewhere. Points are converted to vouchers three times a year and you’ll need a minimum of 500 points to get a voucher. Vouchers are posted out to cardholders.
- Bonus offer
- 0% interest on spending for six months (offer until 9 June)
- No annual fee
- High standard APR
- No 0% balance transfer offer
Tesco Bank Low APR Credit Card
![Tesco Bank Low APR Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/tesco-purchase-card.png)
Ongoing Rewards/Cashback
1 Clubcard point per £4 spent in Tesco (plus an extra 4 points when using a standard Clubcard in Tesco), 1 Clubcard point per £8 spent elsewhere.
Welcome Bonus
None
Annual fee/Representative APR (variable)
£0/10.9% (variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status
![Tesco Bank Low APR Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/tesco-purchase-card.png)
Ongoing Rewards/Cashback
1 Clubcard point per £4 spent in Tesco (plus an extra 4 points when using a standard Clubcard in Tesco), 1 Clubcard point per £8 spent elsewhere.
Welcome Bonus
None
Annual fee/Representative APR (variable)
£0/10.9% (variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status
Regular shoppers at Tesco and Tesco petrol stations will get the most out of the rewards on offer with this card.
Rewards amount to one Clubcard point for every £4 spent in Tesco plus an extra four points when swiping your regular Clubcard alongside it. Earn one point for every £4 spent on Tesco fuel (excluding Esso) plus one point for every litre bought. The credit card pays one Clubcard point for every £8 spent elsewhere with other retailers.
The Low APR credit card offers a permanent low rate at 10.9% APR (variable).
- Earn reward points anywhere you shop – but earn the most at Tesco
- No annual fee
- Low APR
- Rewards restricted to Tesco
- Earn fewer points outside Tesco stores
0% Purchase Credit Cards
Get a set number of months interest-free on purchases made with these cards – just be sure to clear the balance before the 0% period ends.
Barclaycard Platinum Credit Card
![Barclaycard Platinum Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/Barclaycard-Platinum-Credit-Card-e1717676695217.png)
0% purchase period
Up to 21 months
Representative APR
24.9%
(variable)
Customer service score*
62%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.90% p.a. (variable), the representative APR is 24.90% (variable). Credit available subject to status.
![Barclaycard Platinum Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/Barclaycard-Platinum-Credit-Card-e1717676695217.png)
0% purchase period
Up to 21 months
Representative APR
24.9%
(variable)
Customer service score*
62%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.90% p.a. (variable), the representative APR is 24.90% (variable). Credit available subject to status.
The Barclaycard Platinum Card offers interest-free spending for up to 21 months, charging 24.9% (variable) thereafter. The actual deal you’re offered will depend on your eligibility and credit score, and the 0% interest period could be shorter than 21 months.
The card also stacks up well on balance transfers too, offering zero interest for up to 20 months. There’s a 3.45% transfer fee and you’ll need to make the transfer within the first 60 days.
Read more about the Barclaycard Platinum Credit Card.
- Competitive 0% period on interest-free purchases
- Balance transfer offer available
- Early access to live events via Barclaycard Entertainment
- Could be offered much shorter 0% term on purchases
- 3.45% fee if transferring a balance
M&S Purchase Plus Credit Card
0% purchase period
20 months
Representative APR
24.9%
(variable)
Customer service score*
65%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
0% purchase period
20 months
Representative APR
24.9%
(variable)
Customer service score*
65%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
If you’re accepted for this card, you’ll receive up to 20 months interest-free spending on new purchases. Just bear in mind that, depending on your individual circumstances, you may not be offered the full 20 months.
The card also accepts balance transfers, which remain interest-free for up to 12 months. However, there’s a balance transfer fee of 3.49% (minimum £5).
Alongside interest-free purchases, the card offers a reward scheme that pays one M&S point for every £1 spent in M&S stores, plus another point for every £5 spent elsewhere.
At the end of your interest-free period, you’ll pay a representative APR of 24.9% (variable) on any outstanding balance.
- Up to 20 months interest-free purchases
- 12 months 0% interest on balance transfers (3.49% fee)
- Successful applicants not guaranteed to get full 20 months
- 3.49% fee if transferring balance
LLoyds Bank Platinum Purchase card
![LLoyds Bank Platinum Purchase card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/LLoyds_Bank_Platinum_Purchase_card-removebg-preview.png)
0% purchase period
up to 20 months
Representative APR
24.9%
(variable)
Customer service score*
65%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
![LLoyds Bank Platinum Purchase card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/LLoyds_Bank_Platinum_Purchase_card-removebg-preview.png)
0% purchase period
up to 20 months
Representative APR
24.9%
(variable)
Customer service score*
65%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
Lloyd’s Platinum Purchase credit card charge offers up to 20 months at 0% on purchases.
You could also get 0% on balance transfers with this same card, although there is a big transfer fee of 5%.
The representative APR is 24.9% and Lloyds Bank’s credit cards have a solid customer service rating of 65% from Fairer Finance.
Read more about the LLoyds Bank Platinum Purchase card.
- Competitive o% period on purchases and balance transfers
- Longer 0% purchase periods are available
HSBC Purchase Plus Credit Card
0% purchase period
Up to 20 months
Representative APR
24.9%
(variable)
Customer service score*
56%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
0% purchase period
Up to 20 months
Representative APR
24.9%
(variable)
Customer service score*
56%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
This card offers up to 20 months at 0% interest on your card spend. You can also get up to 17 months interest free on balance transfers, with a 3.49% fee (minimum fee of £5). Transfers must be made within the first 60 days of opening the card account.
The 0% interest period you’re offered will depend on your credit score.
You can get £25 cashback when you spend or transfer a balance over £100 with this card. Offer ends 3 September 2024.
HSBC has a slightly lower customer experience score awarded by Fairer Finance, compared to some competitors, at 56%. For this reason we have ranked it slightly lower than other card deals in our list.
- Competitive 0% period
- 0% BT deal available
- £25 cashback offer
- Could be offered shorter 0% term
NatWest Purchase & Balance Transfer Credit Card
![NatWest Purchase & Balance Transfer Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/natwest-rbs-balance-transfer-credit-card.png)
0% purchase period
19 months
Representative APR
24.9%
(variable)
Customer service score*
60%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
![NatWest Purchase & Balance Transfer Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/natwest-rbs-balance-transfer-credit-card.png)
0% purchase period
19 months
Representative APR
24.9%
(variable)
Customer service score*
60%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
This competitive card from NatWest offers up to 19 months on new purchases from account opening. All accepted for the card will get the full 19 months.
It also offers 19 months interest-free on balance transfers made within the first three months – after which standard rates will apply. The balance transfer fee is 2.99%. There is no annual fee.
There is a minimum transfer amount of £100 and you can transfer balances up to 95% of your available credit limit. Balances can be transferred from most credit and store cards, although not from other cards within the NatWest Group (RBS and Ulster Bank).
A representative 24.9% APR (variable) will apply after the promotional periods have expired. However, actual APRs and credit limits can vary depending on NatWest’s credit assessment of applications. Interest on fees and charges is payable in line with the bank’s terms and conditions.
This deal used to be reserved for existing NatWest customers but is now open to all applicants who are UK residents aged 18 or over, and earn more than £10,000 a year.
The same offer is available from RBS and Ulster Bank which are part of the same banking group (NatWest Group plc).
Read more about the NatWest Purchase & Balance Transfer Credit Card card.
- 19 months at 0%
- Same 0% period on balance transfers (2.99% fee)
- No rewards for spending
- Must earn £10,000 a year
*Fairer Finance data, August 2024
0% Balance Transfer Cards
Move existing credit card debt over to one of these cards and pay no interest on it for a given period – a transfer fee usually applies.
Barclaycard Platinum Credit Card
![Barclaycard Platinum Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/Barclaycard-Platinum-Credit-Card-e1717676695217.png)
0% BT Duration
Up to 28 months
Transfer Fee
3.45%
Representative APR
24.9%
(variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
![Barclaycard Platinum Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/Barclaycard-Platinum-Credit-Card-e1717676695217.png)
0% BT Duration
Up to 28 months
Transfer Fee
3.45%
Representative APR
24.9%
(variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
Barclaycard is up there with the best if you are looking to transfer an existing balance from another card provider. It offers up to 28 months interest-free, so long as the transfer is made within 60 days of the account opening, for a fee of 3.45%.
Not all applicants will be offered the full 28 months at 0% interest – some may be offered a shorter interest-free period.
Read more about the Barclaycard Rewards Credit Card.
- Long 0% balance transfer duration
- Early access to live events via Barclaycard Entertainment
- May be offered shorter 0% period and higher APR
- High BT fee at 3.45%
- 60-day transfer window to get 0%
Tesco Bank Balance Transfer Card
![Tesco Bank Balance Transfer Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/11/5e41c055905f4.png)
0% BT duration
up to 27 months
Transfer fee
2.95%
Representative APR
24.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
![Tesco Bank Balance Transfer Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/11/5e41c055905f4.png)
0% BT duration
up to 27 months
Transfer fee
2.95%
Representative APR
24.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
This Tesco Bank balance transfer card offers 27 months’ interest-free on balances transferred from another credit card with a slightly lower balance transfer fee than some providers at 2.95%.
All applicants accepted for the card will be offered the full 27 months. But eligibility depends on having a strong credit score.
The standard representative APR is 24.9%. This is the rate your card balance will revert on to at the end of the 0% interest offer period.
Zero interest money transfers are also available on this card although there is a 3.99% fee.
- Long 0% interest period for balance transfers
- 0% money transfers available (3.99% fee)
- No annual fees
- Balance transfer fee of 2.95%
HSBC Balance Transfer Card
0% BT duration
Up to 27 months
Transfer fee
3.45%
Representative APR
24.9%
HSBC’s balance transfer card offers up to 27 months’ at 0% interest with a 3.45% balance transfer fee.
Not all applicants accepted for the card will be offered the full 27 months. Eligibility depends on having a strong credit score.
The standard representative APR is 24.9%. This is the rate your card balance will revert on to at the end of the 0% interest offer period.
- long 0% interest period for balance transfers
- no annual fee
- Balance transfer fee of 3.45%
Santander Balance Transfer Card
![Santander Balance Transfer Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/02/santander-everyday-card-face.jpg)
0% BT Duration
26 months
Transfer Fee
3%
Representative APR
24.9%
(variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.
![Santander Balance Transfer Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/02/santander-everyday-card-face.jpg)
0% BT Duration
26 months
Transfer Fee
3%
Representative APR
24.9%
(variable)
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.
Santander is offering up to 26 months at 0% on balances transferred from a different provider, for a fee of 3%. While this isn’t a low fee, it is lower than the examples above and still offers a lengthy period at 0% interest.
Card debt reverts to the standard APR of 23.9% after 26 months.
- Competitive 0% on balance transfers for lower fee
- Can’t transfer balances from other Santander credit cards
- Higher BT fee at 3% (minimum £5)
0% Money Transfer Cards
Borrow on these cards as cash that is paid into your bank account and pay no interest on it for a given number of months – transfer fees apply.
MBNA 0% Money Transfer and Purchase Credit Card
![MBNA 0% Money Transfer and Purchase Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2022/02/MBNA-Long-0-balance-transfer-e1644223865309.jpg)
Representative APR
24.9%
(variable)
0% money transfer duration
Up to 12 months
Transfer fee (%)
4%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
![MBNA 0% Money Transfer and Purchase Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2022/02/MBNA-Long-0-balance-transfer-e1644223865309.jpg)
Representative APR
24.9%
(variable)
0% money transfer duration
Up to 12 months
Transfer fee (%)
4%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
This deal offers up to 12 months at 0% interest for money transfers with a 4% fee.
However, for the money to remain interest-free, you will need to make all transfers within the first 60 days of opening the account.
This card also offers 0% on balance transfers and purchases for up to 21 months so it is a good all-rounder. There are fees for this. Rates and deals may vary depending on your credit score.
- 12 months 0% period
- 0% interest on balance transfers and purchases
- No annual fee
- Could be offered a shorter 0% period
- High 4% transfer fee
Virgin Money 12 Month Money and BT Credit Card
![Virgin Money 12 Month Money and BT Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/03/Virgin-All-Round-Credit-Card.png)
Representative APR
26.9%
(variable)
0% money transfer duration
12 months
Transfer fee (%)
4%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 26.9% p.a. (variable), the representative APR is 26.9% (variable). Credit available subject to status.
![Virgin Money 12 Month Money and BT Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/03/Virgin-All-Round-Credit-Card.png)
Representative APR
26.9%
(variable)
0% money transfer duration
12 months
Transfer fee (%)
4%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 26.9% p.a. (variable), the representative APR is 26.9% (variable). Credit available subject to status.
If you are accepted for this card, you will be offered the advertised 0% duration – rather than a shorter alternative.
The 4% fee puts the cost of a £2,000 money transfer at £80 – although this will be all the charges you pay so long as you clear the balance before the representative APR of 26.9% (variable) kicks in.
You’ll need to make the transfer within the first 60 days to qualify for the interest-free borrowing.
Irrespective of the 0% duration, this card could be a handy long-term travelling companion as it unlocks access to Virgin customer lounges across the country.
There’s also 20% off Virgin Experience Days and other Virgin Group discounts.
Always use an eligibility checker to see your chances of being accepted for a card before you apply. This will avoid surprises and leave your credit score intact.
- 12 months guaranteed if accepted
- 12 months 0% on balance transfers
- Relatively high money transfer fee
- High standard APR rate of 26.9%
Capital One Balance Transfer Credit Card
![Capital One Balance Transfer Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/capital-one-card-cc-review-1.png)
Representative APR
34.9% (variable)
0% money transfer duration
12 months
Transfer fee (%)
2.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 34.9% p.a. (variable), the representative APR is 34.9% (variable). Credit available subject to status.
![Capital One Balance Transfer Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/capital-one-card-cc-review-1.png)
Representative APR
34.9% (variable)
0% money transfer duration
12 months
Transfer fee (%)
2.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 34.9% p.a. (variable), the representative APR is 34.9% (variable). Credit available subject to status.
Capital One is offering a strong 0% interest money transfer deal on its balance transfer Mastercard. Successful applicants can get up to 12 months interest free on money transfers with a relatively low 2.9% transfer fee.
The card also offer balance transfers from other credit cards at 0% for up to 18 months with a 3% fee. So this is a strong all round card if you want to do a money transfer and balance transfer.
The follow-on rate is relatively high at a representative APR of 34.9%. This is among the highest of the cards we feature. It is important to make a note of the end date of your 0% interest offer and look to pay off or switch your balance before you’re charged this rate.
Read more about the Capital One Balance Transfer Credit Card.
- low money transfer fee
- 12 months on money transfers at 0% interest
- up to 18 months on balance transfers at 0% interest
- high representative APR (follow on rate)
Tesco Balance Transfer Credit Card
![Tesco Balance Transfer Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/03/Tesco-All-Round.png)
Representative APR
29.9%
(variable)
0% money transfer duration
9 months
Transfer fee (%)
3.99%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
![Tesco Balance Transfer Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/03/Tesco-All-Round.png)
Representative APR
29.9%
(variable)
0% money transfer duration
9 months
Transfer fee (%)
3.99%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 24.9% p.a. (variable), the representative APR is 24.9% (variable). Credit available subject to status.
Tesco’s balance transfer Mastercard also offers up to nine months at 0% interest for money transfers, with a 3.99% fee. As the card name suggests, the main attraction of this card tends to be the balance transfer offer at 0% interest for 29 months with a 3.49% fee.
In addition, Tesco shoppers can pick up Tesco Clubcard points when they spend on the card – even if you are shopping at places other than Tesco, albeit at a lower rate (5 Clubcard points for every £4 you spend in Tesco and 1 for every £8 you spend outside Tesco).
It offers a window of 90 days from opening your account in which to organise the money transfer and get access the interest-free borrowing. All transfers can total up to 95% of your available credit limit.
- 90 days to make money transfers and get 0%
- Collect Tesco Clubcard points on nearly all purchases
- Longer 0% periods are available for money transfer
Travel Credit Cards
Use these cards when spending overseas and avoid the foreign transaction fees and other charges which apply on regular credit cards.
Barclaycard Rewards
![Barclaycard Rewards](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/barclaycard-rewards-card-face-1-e1717684624860.png)
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
28.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status.
![Barclaycard Rewards](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/barclaycard-rewards-card-face-1-e1717684624860.png)
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
28.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status.
The Barclaycard Rewards credit card is free of overseas charges for purchases and ATM withdrawals. ATM withdrawals are interest-free overseas up to £500 per day, provided you pay off the balance in full at the end of each month.
As well as being great for overseas use, the Barclaycard Rewards card actually pays you to spend (albeit at 0.25% which is one penny for every £4) in the form of cashback.
This card has no monthly or annual fee. If there is a balance remaining at the end of the month you’ll be charged a representative 28.9% APR (variable) on it.
The deal comes with some strict eligibility rules. You need to be aged at least 21 to qualify for the card, with four years’ experience handling credit under your belt and an annual income of more than £20,000.
Read more about the Barclaycard Rewards Credit Card.
- No foreign transaction fees
- No cash withdrawal fee
- Earn 0.25% cashback
- High representative APR
- Can only hold one Barclaycard
Halifax Clarity
![Halifax Clarity](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/halifax-clarity.png)
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
23.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.
![Halifax Clarity](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/halifax-clarity.png)
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
23.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.
The Halifax Clarity card charges zero fees when you use it to make purchases or withdraw cash abroad. But it’s only truly cost-free if you pay off your balance in full. If you allow a balance to roll over from one month into the next, you’ll pay interest at a representative 23.90% APR (variable).
If you use the card to withdraw local currency whilst you’re travelling, you’ll be charged interest on that amount with immediate effect at the same 23.90% APR (variable) – or higher if you opt to take out sterling.
- No foreign transaction fees
- No cash withdrawal fee
- £20 cashback offer
- New and existing customers
- Immediate interest charged on cash withdrawals
Credit Builder Cards
Build or rebuild your credit score by spending on one of these cards responsibly and clearing the balance in full every month.
Tesco Foundation Credit Card
![Tesco Foundation Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/tesco-purchase-card.png)
Representative APR
29.9% (variable)
Initial credit limit
£250 to £1,500
Minimum repayment
£25
Representative example
Assuming a credit limit of £1,200 and an interest rate on purchases of 29.9% p.a. variable, the representative APR will be 29.9% variable.
![Tesco Foundation Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/tesco-purchase-card.png)
Representative APR
29.9% (variable)
Initial credit limit
£250 to £1,500
Minimum repayment
£25
Representative example
Assuming a credit limit of £1,200 and an interest rate on purchases of 29.9% p.a. variable, the representative APR will be 29.9% variable.
Tesco’s Foundation Credit Card offered the lowest rate advertised APR we found for the market, at a representative 29.9% APR (variable).
While Tesco states that you’re more likely to be accepted for the card if you haven’t had an account closed in the past year because of defaults, or if you’ve not had any County Court Judgments (CCJs) in the last 18 months, that’s a fairly standard barrier to entry for these types of card.
Credit limits range between £250 and £1,500.
You’ll earn Clubcard points on purchases when you use this card at a rate of five points for every £4 you spend in Tesco stores and one point for every £4 spent in Tesco fuel stations (Esso excluded) and an extra point for every litre of fuel purchased. Plus you’ll earn one point for every £8 you spend elsewhere.
The balance transfer rate is the same for purchases and balance transfers, but there’s a relatively high 3.99% fee on the latter and no 0% promotional period.
- Competitive representative APR for credit-builder market
- Earn Clubcard points on spending
- Access to your credit report for 3 years with Tesco Bank CreditView
- APR offered could be as high as 39.9%
- Minimum repayments start at £25
- CCJs and defaults may not be accepted
Post Office Money Credit Card
![Post Office Money Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/post-office-money-classic-credit-card.png)
Representative APR
34.9% (variable)
Initial credit limit
From £200
Minimum repayment
The greater of 3% or £5
Representative example
Assuming a credit limit of £1,200 and an interest rate on purchases of 34.9% p.a. variable, the representative APR will be 34.9% variable.
![Post Office Money Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/post-office-money-classic-credit-card.png)
Representative APR
34.9% (variable)
Initial credit limit
From £200
Minimum repayment
The greater of 3% or £5
Representative example
Assuming a credit limit of £1,200 and an interest rate on purchases of 34.9% p.a. variable, the representative APR will be 34.9% variable.
The Classic card from the Post Office is worth considering if you have a patchy credit history (although the APR you are offered could be up to 34.9% variable).
You may also be eligible for 0% on purchases for up to 12 months and to transfer across an existing balance from a different credit card – and get 0% interest on the balance for up to 12 months (for a 2.9% fee).
Capital One is now the lender and issuer of all new Post Office credit cards (following the change from Bank of Ireland), for which Post Office acts as credit broker.
- Potential 0% on purchases and balance transfers
- Competitive credit builder APR
- Credit limits on application
- 2.9% balance transfer fee
Barclaycard Forward Card
![Barclaycard Forward Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/BC-Forward.jpg)
Representative APR
33.90% (variable)
Initial credit limit
£50 to £1,200
Minimum repayment
£5
Representative example
Assuming a credit limit of £1,200 and an interest rate on purchases of 33.90% p.a. variable, the representative APR will be 33.90% variable.
![Barclaycard Forward Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/BC-Forward.jpg)
Representative APR
33.90% (variable)
Initial credit limit
£50 to £1,200
Minimum repayment
£5
Representative example
Assuming a credit limit of £1,200 and an interest rate on purchases of 33.90% p.a. variable, the representative APR will be 33.90% variable.
The criteria for Barclaycard’s Forward credit builder card is relatively stringent for the market and charges interest at a representative 33.90% APR (variable). But it does offer 0% interest on spending for the first 3 months and a low minimum monthly repayment.
However, you’re likely to be rejected for the card if, in the last six years, you’ve had more than one CCJ or a single bankruptcy, compared to many other card issuers that only issue these restrictions over the last 12-18 months.
The card comes with a ‘Price Promise’ that offers a 3% reduction in the APR if make all your payments on time for the first year and a further 2% reduction if you do it again in year two.
- Reductions in APR for timely payments
- 0% on purchases for 3 months
- Not available if multiple CCJs or bankrupt in the last 6 years
- Credit limits as low as £50
Low APR Credit Cards
Secure a market-competitive interest rate on one of these cards if you tend to carry a small balance over from month to month.
Tesco Bank Low APR Credit Card
![Tesco Bank Low APR Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/03/Tesco-Bank-Low-APR-Credit-Card.png)
Representative APR
10.9% (variable)
Perks/ Benefits
Earn bonus Clubcard points
Availability
Cannot hold more than one other Tesco Bank credit card
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status.
![Tesco Bank Low APR Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/03/Tesco-Bank-Low-APR-Credit-Card.png)
Representative APR
10.9% (variable)
Perks/ Benefits
Earn bonus Clubcard points
Availability
Cannot hold more than one other Tesco Bank credit card
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status.
In the best case scenario, this card charges 10.9% APR (variable) and will earn you Tesco Clubcard points wherever you use it.
But, depending on your personal circumstances, you could be offered a rate of up to 17.9% APR (variable).
If you’re looking to move a balance from another card, APRs are higher still (up to 19.26%, variable) while there’s a 3.99% handling fee, too.
As with all of Tesco Bank’s cards, there are benefits for shoppers and the card itself doubles as your Clubcard. Use the card in Tesco stores or fuel stations and you’ll earn 5 additional Clubcard points for every £4 you spend – and that’s on top of the points you’d usually earn.
To put that in context, a weekly shop of £60 would earn you around additional 300 points in a month, which are worth £3 in store.
Outside of Tesco, you’ll earn one point for every £8 you put on the card.
- Competitive, low rate
- Bonus Clubcard points on spending
- You could be offered a APR of 17.9% (variable)
- 3.99% balance transfer fee
Lloyds Bank Mastercard
![Lloyds Bank Mastercard](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/LLoyds_Bank_Platinum_Purchase_card-removebg-preview.png)
Representative Example
10.9% (variable)
Perks/Benefits
None
Availability
Not available to existing card customers
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status.
![Lloyds Bank Mastercard](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/LLoyds_Bank_Platinum_Purchase_card-removebg-preview.png)
Representative Example
10.9% (variable)
Perks/Benefits
None
Availability
Not available to existing card customers
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status.
Lloyds Bank offers a permanent low rate on its standard Mastercard. The 10.9% rate applies to new purchases and balance transfers. Balance transfers are fee free is the balance is moved in the first 90 days, the fee is 5% on transfers thereafter.
- Competitive low rate
- Permanent low rate for purchase and balance transfers
- You could be offered a higher APR
- Not available to existing Lloyds/BoS customers
Bank of Scotland Mastercard
![Bank of Scotland Mastercard](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/06/Bank-of-Scotland-Mastercard-1.png)
Representative APR
10.9% (variable)
Perks/Benefits
none
Availability
Not available to existing card customers
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status.
![Bank of Scotland Mastercard](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/06/Bank-of-Scotland-Mastercard-1.png)
Representative APR
10.9% (variable)
Perks/Benefits
none
Availability
Not available to existing card customers
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 10.9% p.a. (variable), the representative APR is 10.9% (variable). Credit available subject to status.
Bank of Scotland offers a permanent low rate on its standard Mastercard. The 10.9% rate applies to new purchases and balance transfers. The rate offered is dependent on credit score.
The card’s 2.95% non-sterling transaction fee means it’s probably not the best card to use overseas.
- Competitive low rate
- Permanent low rate for purchase and balance transfers
- You could be offered a higher APR
- Not available to existing BoS cardholders
- Foreign use fees apply
Co-operative Bank 3-Year Fixed Rate Credit Card
![Co-operative Bank 3-Year Fixed Rate Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/Co-operative-Bank-3-Year-Fixed-Rate-Credit-Card.png)
Representative APR
8.9%
(fixed for 3 years)
Representative APR on BTs
8.9%
(fixed for 3 years)
Existing customers
Yes
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 18.2% p.a. (variable), the representative APR is 18.2% (variable). Credit available subject to status.
![Co-operative Bank 3-Year Fixed Rate Credit Card](https://thumbor.forbes.com/thumbor/fit-in/125x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/08/Co-operative-Bank-3-Year-Fixed-Rate-Credit-Card.png)
Representative APR
8.9%
(fixed for 3 years)
Representative APR on BTs
8.9%
(fixed for 3 years)
Existing customers
Yes
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 18.2% p.a. (variable), the representative APR is 18.2% (variable). Credit available subject to status.
This Co-operative Bank card offers a low fixed rate on balance transfers and purchases for three years (after this time the APR reverts to 18.2% variable).
There is no fee to switch a balance to the card and no ongoing fees. The Visa card is available to all, including existing card customers.
Minimum credit limit is £500 and there is a cash advance rate of 27.9%.
Applicants must earn a minimum of £10,000 a year and be in employment or retired.
- Competitive low fixed rate
- No balance transfer fee
- Available to existing customers
- High cash advance rate
- Fixed rate ends after three years (and likely to jump up to 18.2% APR)
- Must earn £10,000 to apply
Balance Transfer cards with a 0% offer can be useful if you have debt to pay off. But it’s worth thinking about how long it will take you to clear the debt and go for the card that suits your timescales – because the longer the 0% balance transfer offer, typically the higher the fee.
– Katie Brain, insights consultant at Defaqto
How to choose the best credit card for you
Are you making a major purchase?
A card offering interest-free spending is the cheapest way to borrow – but only on the proviso you repay the full balance before the 0% offer period expires. Do your sums first to make sure this is possible.
Do you have debt to clear?
If your debt is on a credit card you can transfer it to a balance transfer deal from a different provider and pay no interest for a set period.
If it’s overdraft debt, a money transfer credit card pays cash straight into your bank account and charges no interest for a set (shorter) period. In both cases a transfer fee will be payable.
You will also need to be sure you can clear the debt before interest charges kick in.
Do you have a low credit score?
If you have a low credit score, a credit card for bad credit – also known as a ‘credit builder’ – card is easier to be accepted for, and will allow you to build or rebuild your credit score. It’s especially important not to carry a balance on these cards however as interest rates are very high.
Do you want rewards for your spending?
If you pay your balance off every month, get something back for your spending as cash or rewards, such as points and discounts at certain retailers.
Are you heading overseas?
A specific travel credit card will mean you can avoid foreign transaction fees (usually around 2.99%) every time you spend as well as ATM fees for withdrawing cash.
These days, eligibility checkers indicate whether or not you’d be accepted for the card before you make an official application. It takes the stress out of the process as you can play around with deals without leaving any trace on your credit report.
How to apply for a credit card; step-by-step guide
1. Answer the questions above to establish the right type of card for you
2. Compare relevant deals and select the credit card you want
3. You will then be taken through to the provider’s website to apply
4. Enter required details such as employment, earnings as your desired credit limit
5. Use the eligibility checker to find out your chances of being accepted for the card without leaving a mark on your credit score
6. Apply for your card and find out your allocated credit limit. When approved, your account will be open
7. Receive your card in the post within around 3-5 working days
8. Register your card and sign the back
9. Download the provider app and connect your card
10. Consider setting up a direct debit to repay what you spend in full every month.
Credit card providers typically offer the first 56 days interest-free after you’ve made a purchase – providing you pay your balance off in full and on time. To take full advantage of this feature, make any major purchases on day one of your billing cycle. If you are unsure of your billing cycle dates, contact your credit card provider to find out.
Types of credit card
How do they work? Cashback credit cards allow you to ‘claw back’ a percentage of what you spend on the card. Usually, this money will be paid into your account annually, but sometimes it’s monthly.
Rates of cashback on offer vary and often depend on the amount you spend. Some credit cards also pay a higher percentage of cashback in the first few months to attract new customers.
Who are they suited to? Interest rates on cashback cards tend to be high, which means they are only suitable if you pay off your balance in full each month – preferably by direct debit.
They are useful if you make larger purchases and/ or pay for the majority of spending on your credit card as you’ll earn more cashback.
What to watch out for: As well as high interest rates, some cashback cards come with a one-off annual fee. The amount of cashback you can earn can also be capped. If you don’t pay off your balance every month, the interest payments and potential fees are likely to far outweigh any cashback earned.
You will need an excellent credit score to be accepted for the best cashback card deals.
How do they work? These cards offer rewards for spending. Rewards can take the form of air miles – that you can later redeem on flights – or loyalty points which can be redeemed at selected retailers.
Who are they suited to? Interest rates on rewards credit cards tend to be high. This means they are only suitable if you pay off your balance in full each month – preferably by direct debit.
This type of card may suit frequent flyers or those who regularly shop at a particular retailer or supermarket. They are useful if you make larger purchases and/ or pay for the majority of spending on your credit card as you’ll earn more in rewards.
What to watch out for: As well as high interest rates, some rewards cards come with a one-off annual fee. The amount of rewards you earn can also be capped. If you don’t pay off your balance every month, the interest payments and potential fees are likely to far outweigh any rewards earned.
You will need an excellent credit score to be accepted for the best deals.
How do they work? Purchase credit cards, which offer a promotional 0% rate for a stated number of months, are ideal for spreading the cost of a large purchase.
Who are they suited to? If you are planning the purchase of a big ticket item such as a car or home improvements that you cannot afford to pay for upfront (or you just prefer to keep the funds you have intact), these cards are an ideal solution.
What to watch out for: If you run up a balance which you don’t manage to pay off within the 0% period, annual percentage rates (APRs) of up to 25% (variable) or even higher will kick in. Work out how much you need to pay off each month in order to clear your balance within the allocated interest-free period.
You may also have to carry out your spending within the first 60 or 90 days to qualify for the 0% offer. As with all the best credit card deals, an excellent credit score is required.
How do they work? A balance transfer credit card allows you to shift one or more credit card balances across to a new card and pay a lower rate of interest on the total debt.
If you choose a balance transfer credit card with an introductory 0% offer, you won’t have to pay any interest at all for a set number of months – in the best cases, this is for more than two years.
Who are they suited to? If you are paying high rates of interest on existing credit card or store card debt, shifting it over to a 0% balance transfer credit card can save a fortune in interest payment, and help you clear your debt more quickly.
What to watch out for: There is usually a transfer fee to pay which is a percentage of the amount transferred. This is often around 3% – £36 on a £1,200 transfer – so factor this cost into any potential savings. If you don’t need long to clear the debt, look at cards with a shorter interest-free window but lower transfer fee. Some balance transfer cards (examples above) do not charge a fee at all.
Keep a log of when the interest-free period expires and try to pay off your debt in full before then. If you still have a balance, you will be charged interest on it, typically at up to around 25% APR (variable) or even higher in the case of some cards. You may be able to carry out another balance transfer, although this could incur another fee.
You will need to carry out balance transfers within the first 60 or 90 days of getting the card and you will only be able to transfer up to a maximum of 95% of your allocated credit limit.
You will also need an excellent credit score to be accepted for the best deals.
How do they work? A money transfer credit card allows you to borrow on your credit card as cash, which is credited to your bank account. You can use this money as you like – such as to pay off an overdraft or loan. As with 0% balance transfer cards, if you choose a 0% money transfer card, you won’t have to pay interest for a number of months.
Who are they suited to? If you are paying interest on an overdraft, personal loan, or other debt, paying it off with a 0% money transfer credit card can eradicate the interest you pay and help you become debt-free quicker.
Money transfer cards can also be used to fund a large purchase, but make sure you don’t use the card itself to fund it as this is likely to incur interest. Instead, wait for the 0% cash deposit to hit your bank account. Then use your debit card or make an online transfer from your current account.
What to watch out for: There is usually a transfer fee to pay – around 4% of the borrowing – so factor this cost into your sums. If your card has an introductory 0% offer, steep interest will kick in when it ends. Set down a payment plan to clear your balance by then.
You will need to carry out money transfers within the first 60 or 90 days of getting the card (particularly if there is a 0% offer) and you will only be able to borrow up to between 93% and 95% of your allocated credit limit.
You will also need an excellent credit score to be accepted for any money transfer deal.
How do they work? A travel credit card is ideal for spending abroad as you won’t be charged fees every time you make a purchase. By contrast, standard credit cards charge foreign transaction fees of around 2.75% to 2.99% when you spend on the card abroad.
If you withdraw cash on your credit card – even in the local currency – you could be charged a further 2.99% with a standard card, as well as interest from the date of the withdrawal.
Who are they suited to? Frequent overseas travellers, or holidaymakers simply looking for the most cost-effective way to spend when abroad. Use responsibly, travel credit cards, can be cheaper than debit cards for use overseas.
What to watch out for: You will usually still pay interest on purchases if you don’t clear your balance each month, so make sure you only spend what you can afford to pay back.
Be aware too that even if your credit card doesn’t charge a fee for cash withdrawals, you will often still pay interest from the point of the cash withdrawal – it’s therefore best to avoid withdrawing cash on a credit card if you can.
How do they work? If your credit score prevents you from qualifying for mainstream credit card deals, a credit builder credit card is designed to rebuild your credit score in exchange for good card management.
However, these cards come with lower credit limits and much higher rates of interest than a standard credit card.
Who are they suited to? Applicants with either no credit history or those with a poor credit score from mismanaging borrowing in the past. If you make your payments in full and on time every month and don’t exceed your credit limit, using a credit builder card can help to improve your credit score and increase your chances of being accepted for more competitive credit cards in the future.
What to watch out for: Credit builder cards come with the highest interest rates on the credit card market, so it’s vital to pay off your balance in full each month. The cards also come with low credit limits but providers increase limits in exchange for responsible card management.
How do they work? Low-rate credit cards charge interest, but at an ongoing low rate in credit card terms. This means you won’t need to worry about 0% promotional offers expiring and being hit with more typical APRs of 25% (variable) or even higher.
Who are they suited to? Low APR credit cards are ideal if you want to avoid the pressure of paying off any balance to a ‘hard stop’ of a 0% offer ending and/ or you are not inclined to switch to another 0% promotional offer.
What to watch out for: While it’s possible to transfer an existing balance to a low-rate credit card or use it abroad either at an ATM or over the counter, fees are likely to apply. Always read the small print to avoid any surprises.
Pros and cons of credit cards
Pros
- protection under the Consumer Credit Act on spend above £100 up to £30,000
- opportunities to earn rewards and cashback
- some cards offer interest-free borrowing
- build up your credit score when used responsibly
- flexible and convenient access to borrowing
Cons
- APRs very high if interest is payable
- easy access to borrowing
- fees for late payment or exceeding credit limit
- damage credit score if mismanaged
- initial interest-free periods can tempt overspending
Read the terms and conditions associated with any 0% offers, but especially with a 0% purchase offer as some cards only allow a 60 day window for the interest to be free
– Katie Brain, insights consultant at Defaqto
Can I get a credit card with bad credit?
If your credit score is low, you are very unlikely to be accepted for a top credit card – such as one that offers rewards and cashback on spending.
However, credit builder cards are designed specifically for applicants with bad credit. When managed responsibly, these cards can then be used to build up your credit score so that you become eligible for a better deal in the future.
Use an eligibility checker to avoid your credit score being damaged further if a formal application is rejected.
Once you have a card, set up a direct debit to repay the balance in full so you avoid paying the top rates of interest these cards tend to charge. This will also ensure that payments are made on time – late payments will damage your credit score further.
How are the cards ranked?
Each category of credit card is ranked according to its own characteristics.
All cards are available to new and existing customers and choices were overlaid with editorial judgment.
While the information is correct at the time of writing, credit card offers can change frequently. Those listed are the best we found at the publish date.
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