There's never been a better time to get a credit card

If you need to take advantage of some credit, you've never had such a range of options before.

It’s a time of year when plenty of Brits will be dreading their credit card statement falling through the letterbox, having overindulged financially (as well as food-wise) over Xmas. However, there’s never actually been a better time to get a new credit card.

Great cards for purchasing

Not that long ago, the idea that a credit card would offer a full year of 0% interest on purchases was pretty extraordinary. I remember when the Tesco Clubcard credit card was first launched, there was tangible excitement in the office. A full year with which to pay off your balance before you get whacked with interest payments? Incredible!

Up to that point, the best you could get was ten months. I was so impressed by the card and its features that I got one, as did my wife. After all, we had a wedding to pay for!

Fast forward a little over a year, and the Tesco card is still the best around. However, it’s got even better, now offering 13 months of 0% interest. And a few other card providers have raised their game, also moving to offer a year free of interest payments on purchases.

The table below details the best cards around for spreading your payments.

*Only open to existing current account holders

Dealing with debt gets better

Things have also got far better for customers looking for a good balance transfer credit card. 18 months ago, Virgin were easily the best in the market with their card offering 16 months of 0% interest on balance transfers, with a 3% transfer fee. OK, so there were a few cards offering 15 months, but Virgin was undoubtedly top dog, and had been for a long time.

Now though, Virgin is far from alone. Indeed, in terms of interest rates, there’s never been a better time to be in debt on a credit card, such is the level of choice between cards offering 16 months free at 0% interest on balance transfers. Even the transfer fees are getting better (albeit by pretty minimal amounts).

Here are the current market leaders when it comes to balance transfer cards.

*Only available to current account holders

All round credit cards

I’m a pretty simple guy, so have always been a fan of 'all-round' credit cards. These are cards which offer identical periods of 0% interest on both purchases and balance transfers, which means they are good for borrowers with existing debt who also want to spend on credit, interest-free.

So you don't need one card for spending, and another for existing debt (thus neatly avoiding negative order of payment). It also means fewer credit card applications and one simple bill to try to pay off each month.  If you want to keep your credit card activity simple, I think they are the best cards around.

Last summer I got tremendously excited about the Halifax All-in-One card, which at launch offered nine months of 0% interest on both purchases and balance transfers. While it was a great deal at the time, things have improved significantly if you would like an all-round credit card.

Getting a free holiday!

One of my favourite forms of reward credit cards are those that offer Airmiles – after all, it’s the Airmiles scheme that meant I got to enjoy a lovely honeymoon in the Caribbean. And at the moment there’s a stonking offer available from the Lloyds TSB Airmiles Duo credit card, the official card of the scheme.

It’s technically two credit cards – an American Express and a Mastercard. Ordinarily you earn one Airmile for every £10 spent on the American Express card, and one mile for every £50 spent on the Mastercard. However, for new customers who take out the cards, you can now collect one Airmile for every £1 you spend over the first three months, an incredible offer!

I put all of my household’s spending on my credit card, so a monthly bill of £750 isn’t unusual. If I put all of that on the Airmiles card, that’s enough miles for a flight to Dublin from just one month’s spending!

Too much of a good thing isn’t good for you!

While there has never been such a good time to be in the market for a decent credit card, for some Brits getting another card is the worst thing they can possibly do.

New research from Experian, as part of financial planning week, has highlighted the ‘creditaholic’ behaviour of many Brits, with more than a third of 18 to 34 year olds using their credit card as a buffer to cover them to payday, while more than half said their spending style was spontaneous – if they saw something they liked, they would simply buy it, irrespective of how they would pay for it in the long run.

While a little credit is mightily useful, it can be very easy to tip over into being reliant on it to get by, a pretty unhealthy state of affairs. So don't go mad on your spending this Christmas! 

More: Find out when interest rates will rise | 5 steps to getting your finances in shape

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