The best credit cards for balance transfers, purchases, rewards, cashback, bad credit and more
What's the best credit card for if you have debts, need to make a big purchase, want rewards or need to fix your credit history?
Choosing the best credit card can be tricky. With offers on balance transfers, new purchases, money transfers, rewards and more it can be hard to pick one that's right for you.
To help you make a decison on your next credit card, here’s a rundown of the best deals to match your situation.
Best for paying off credit card debt
If you have spiralling credit card debt, a 0% balance transfer credit card can help you get back in control and clear it.
These cards allow you to shift your balance from one card onto another where you can pay it off month-by-month interest-free.
Getting the right length of balance transfer is key as you need to make sure that all your debt is paid off by the time your 0% period ends.
You can do this by working out how much you want to transfer and how much you’re able to pay off a month.
You should also watch out for the balance transfer fee some deals attract. This is a one-off charge to shift your debt.
The longest-lasting card on the market right now is the Halifax 43-Month Balance Transfer Credit Card. However, the balance transfer fee on the card is a whopping 3.28%.
It’s possible to get a lower or even 0% fee, but you’d have to settle for a shorter 0% period.
At the moment, you can get a 26-month interest-free balance transfer card from Halifax with absolutely no balance transfer fee at all.
Find out more by heading to the loveMONEY balance transfer credit card comparison centre.
Best for paying off an overdraft
If you have overdraft debt you are better off going for a 0% money transfer credit card.
With a money transfer card you can move money from a credit card to a current account, rather than from a credit card to another credit card.
The Virgin Money 41-Month Balance Transfer Credit Card will give you a whopping 41 months interest-free on money transfers as well as balance transfers.
Money transfers do come with a pretty substantial 3.79% fee though. To put that in context, transferring £2,000 would cost £75.80.
This is a limited offer running until 7 July 2017.
If you wanted a smaller fee, the Virgin Money 32-Month Money Transfer Card charges 1.99%.
This could prove a cheaper option, provided you clear your debt in the 32-month interest-free period.
Best for making a big purchase
Thinking of buying a car or a new sofa? A 0% purchase credit card is a good shout as they allow you to spread the cost of a big purchase without attracting interest.
The longest deal on the market is the Halifax 30-Month Purchase Credit Card, followed by the Sainsbury’s Bank Nectar Purchase Credit Card at 29 months.
Note that there’s no guarantee you’ll get the best deal: that’s dependent on your credit record.
Some lenders will give you a shorter interest-free period if you have something of a blemished credit rating, so do your research first.
You could try our credit card approval tool, which tells you the likelihood of qualifying for a specific deal.
Best for holiday spending
If you’re going on holiday, make sure you pack the right credit card!
Most cards charge rip-off fees when you spend abroad, but some offer fee-free overseas spending.
The Saga Platinum Credit Card (reserved for the over 50s) lets you avoid foreign currency fees when you spend overseas.
You’ll also benefit from interest-free ATM withdrawals if you clear your balance within 55 days. The interest rate soars to 23.9% if you don’t, so make sure you pay it off quickly!
The best card open to all is the Post Office Money Platinum Credit Card which offers fee-free purchases abroad and no cash fee when buying travel money at the Post Office.
Deals really vary from card to card so it's worth checking out the loveMONEY credit card centre to see which one is right for you.
Best for fixing your credit history
It can be easy for your credit rating to worsen without you even noticing – a missed bill here, a credit request too many there.
Luckily, there are cards on the market to help re-build your financial reputation. Basically, you spend a little every month and pay it back to show that you’re financially trustworthy.
The Vanquis Chrome 24.7% APR card starts off with a £250 credit limit which can increase to £1,000 over time, as long as you use your card sensibly.
For more credit-building deals, head to the loveMONEY comparison centre.
Keep an eye on your credit report to see how your rating is doing. Once you’ve improved it enough, you’ll be able to apply for a more competitive card.
Read more at How to build an excellent credit history.
Best for everyday spending rewards
Now, this one’s a little broader as rewards can come in many forms, including points.
On the Sainsbury’s Bank Nectar Purchase Credit Card, for example, you can earn Nectar points while you spend.
New customers get 5,000 after signing up if they spend £250 on Sainsbury’s shopping or fuel within the first month of signing up.
The offer is available to new customers that apply before 26 March.
From there you get two Nectar points for every pound spent in-store and on fuel and one point for every £5 spent elsewhere.
Other rewards include points to be put towards shopping spends. With the M&S Shopping Plus MasterCard you can get points every time you shop which can be spent on vouchers.
You’ll get one point for every pound spent in M&S and one point for every fiver spent elsewhere. There’s also a chance to win a voucher when you spend on food, clothing and homewares at M&S.
Just be careful with your spending: if you’re unable to pay off the minimum amount on the card each month, the interest rate you’re hit with could wipe out any rewards you’ve built up. Find credit cards with even more rewards right now.
Best for cashback
Though this could be classed as a reward, there are so many cashback credit cards going that it deserves its own section.
Cashback credit cards can give you money back on your regular spending. Be rewarded for a shop at the supermarket, fuelling your motor or buying something online.
If you’re a regular Asda shopper, it makes sense to plump for the Asda Cashback Plus Credit Card.
You can get 2% cashback for spending in-store at Asda and 1% on all of your other spending. Just watch out for the £36 annual fee and the rather large 26.2% APR.
Motorheads will favour the AA Fuelsave Credit Card which will give you up to 4% cashback on fuel.
The only caveat is that you need to spend £500 or more on purchases in a month. Anything under that will get you 2% cashback. All other purchases will get you 0.5% cashback.
The card is fee-free for 12 months, but will attract a monthly £3.50 fee after this period.
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