Credit cards for every occasion

Whatever you need a credit card for, there's bound to be one for you...

Credit cards aren’t always viewed as the best way to spend money. And of course, if you’re likely to rack up a lot of debt on a credit card that you’ll struggle to pay off, credit cards are probably best avoided.

Yet at the same time, if you use your credit card correctly, it can be an extremely handy piece of plastic to have in your wallet.

With many different credit cards on the market, it can be very difficult to know which one to choose. However, credit cards are designed for different purposes. So your choice of card needs to depend on exactly how you’re planning to use it.

To give you a helping hand, here, I’m going to highlight the best credit cards for all occasions!

Interest-free spending

Let’s start off with credit cards for all the big spenders out there. If you have an important expenditure looming and you’re not sure how you’ll afford to pay for it, make sure you use a 0% on new purchases credit card.

These little beauties allow you to spend interest-free for a set period. The table below highlights three of the most competitive 0% on new purchases credit cards on the market right now:

 *Limited offer. £20 off your fee when you transfer £3,000 or more by 31 January.

As you can see, the Tesco Clubcard Credit Card MasterCard is the most competitive out of the three, offering 0% interest for 13 months. So that means you can spread out your payments for just over a year without worrying about the interest stacking up. Just make sure you clear your balance in full before the 13 months period comes to an end to avoid paying an interest rate of 16.9%.

What’s more, if you do choose the Tesco card, you’ll also be able to earn Clubcard points as you spend. For every £4 you spend on the card anywhere in the world, you’ll collect one Clubcard point.

However, your credit card also doubles as a standard Clubcard so you’ll collect points that way on your Tesco purchases too! And if you take the card out before 3 March, you’ll benefit from a bonus 500 Clubcard points.

For more information, read The best credit cards for spending.

Balance transfers

If you’ve already racked up a lot of debt on a credit card and you’re now paying a hefty sum of interest on that debt, it’s time to shift it across to a 0% balance transfer credit card. That way you won’t have to pay interest on your debt for a year or more.

The table below highlights three of the top 0% balance transfer credit cards on the market:

*Limited offer. £20 off your fee when you transfer £3,000 or more by 31 January.

In this case, the Barclaycard Platinum with 17 month BT Visa is the most competitive 0% balance transfer card you’ll find on the market. It offers a fantastic interest-free period of 17 months, giving you plenty of time to start tackling your debt head on.

What’s more, if you transfer over a balance of £3,000 or more before the end of January, you’ll get £20 off your balance transfer fee (you’ll receive this as a refund against how much you pay).

Related how-to guide

Pay off your credit card debts

How to destroy your credit card debt quickly and effectively.

See the guide

Again, make sure you pay off the balance in full before the interest-free period comes to an end.

For more about these cards and even more 0% balance transfer credit cards, read A new 17 months interest-free credit card and 20 top 0% balance transfer cards.

Low interest for life

But what about if the debt on your existing credit card is so large, it’s likely to take you a long time to pay off – even with an interest-free period of 17 months?

In this case, you may be better off shifting that debt over to a low APR credit card. These cards offer a low rate of interest for the lifetime of the debt. This means you won’t have an ‘expiry date’ to worry about, and although your debt won’t be interest-free, you won’t be dealing with the extortionate rates of interest many card providers charge.

The table below highlights the top two low rate credit cards on the market:

As you can see, if you’re struggling with your debt, a low rate of 5.9% or 6.8% could come in very handy!

With the MBNA Rate for Life card, providing you transfer a balance within the first 60 days, you’ll only have to pay a fee of 2%.

What’s more, this credit card allows you to carry out money transfers. This means you can move money from your credit card into your current account and use this money to pay off an expensive loan or overdraft, for example, at a rate of 5.9%. This also comes with a 2% fee, which is half the usual MBNA rate - worth grabbing while you can.

Just make sure you avoid using the MBNA Rate for Life card for purchases as you will have to pay an interest rate of 16.9%.

Alternatively, the Barclaycard Platinum Simplicity Visa offers 6.8% on both balance transfers and purchases and there’s no balance transfer fee. Bear in mind, however, this rate is variable, so it could change.

Big rewards

Finally, if you religiously pay off your balance in full each month, why not get rewarded for your spending?

The American Express Platinum Cashback Credit Card offers 5% cashback in the first three months of spending. After that, you can earn up to 1.25% - depending on how much you spend. The downside to this card, however, is that American Express isn’t accepted everywhere.

Alternatively, if you’re a frequent flyer, the Lloyds TSB Airmiles Duo Credit Card allows you to collect airmiles as you spend. You’ll be sent two credit cards – one American Express and one MasterCard (to use when American Express isn’t accepted). You’ll earn one airmile for every £10 you spend on the American Express card and for every £50 you spend on the MasterCard. You can find out more in You can afford a summer holiday.

Get help from lovemoney.com

For great how-to guides, explaining everything from how to cut your mortgage costs to how to make money in every room of your house, head over to our Guides section.

If you need help with a specific issue, why not see if your fellow lovemoney.com users can help by asking a question in our Q&A section?

More: Get a perfect credit card | The secret trick you can use against your credit card provider | Credit cards that bend the rules