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Find the right credit card for you

Find the right credit card for you

Category: Credit cards

Updated: 22/09/2011
First Published: 19/05/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

One of the most competitive corners in personal finance over the last year has been the credit card market.

Various providers have battled for a slice of the lucrative market, with introductory 0% offers rising to record levels in both the balance transfer and purchase markets.

Figures show that Britons have become more wary of taking on debt since the beginning of the financial downturn, but, when used correctly, credit cards are still an effective payment method.

There are a number of different credit cards on the market aimed at different types of customers, and by plumping the card that best suits your needs, you could save yourself a sizeable sum.

To help you along your way, Moneyfacts.co.uk presents a run down of some of the best credit cards currently on the market.

Best for balance transfers

  • The Barclaycard Platinum with Balance Transfer Visa offers customers the chance to pay no interest on transferred balances for 20 months – the longest 0% balance transfer period ever offered.
  • An initial balance transfer fee of 3.20%, minimum £7.25 is payable, but customers transferring at least £2,500 are currently being offered £10 off the balance transfer fee.
  • New customers are charged no interest for the first three months on new purchases.
  • Outside the introductory deals the card charges 17.5% APR.

Best for new purchases

  • Marks & Spencer Money are offered customers the chance to pay no interest on new purchases for the first 15 months after the opening of the account, after which the card charges 15.9% APR.
  • The card also offers a competitive loyalty scheme, where customers earn 1 point per £1 spent in M&S stores and 1 point per £2 spent elsewhere.
  • Points are redeemed for M&S vouchers at regular intervals during the year.

Best for Low rate cards

  • The lowest rate on the market of 7.9% APR is being offered by Barclaycard on its Simplicity Platinum Visa. Customers can transfer an existing balance to the card, charged at the standard rate.
  • The Barclaycard Freedom reward scheme is offered with the card, where by customers earn Reward Money for spend at selected retailers, which can then be redeemed against future purchases.

Best for cashback

Only a handful of credit cards offer cashback as a rewards scheme.

  • The card has an introductory offer of 5% cashback on purchases made within the first three months, after which customers received between 0.50% and 1.25% depending on the amount spent on the card.
  • Customers benefit from no interest charges on new purchases for the first six months, after which the card reverts to 19.9% APR.

For a rundown of all of the best credit cards the market has to offer, check out the Moneyfacts.co.uk Best Buy tables.

Find the best credit card rates - Compare credit cards

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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