We've picked out the very best credit cards to use this Christmas.
Christmas is on its way and it’s always an expensive time.
All of those extras cost quite a bit of cash and it’s worth taking the time to figure out how you’re going to cover it all.
It's worth doing as much of your shopping as possible on a credit card, for a number of reasons, not just the ability to spread the cost over many months. You also get more protection thanks to Section 75 of Consumer Credit Act, should there be anything wrong with your purchase.
So which are the best cards to go for?
The best 0% purchase credit cards
If you have some big purchases on the way, a credit card that doesn't charge interest on your balance for a decent period is a great idea.
|
Credit card |
0% period |
Representative APR |
|---|---|---|
|
27 months |
18.9% |
|
|
26 months |
18.9% |
|
|
26 months |
18.9% |
|
|
25 months |
18.9% |
|
|
24 months |
18.9% |
|
|
24 months |
19.9% |
|
|
23 months |
16.5% |
|
|
21 months |
18.9% |
|
|
21 months |
18.9% |
|
|
20 months |
18.9% |
|
|
20 months |
21.9% |
|
|
20 months |
18.9% |
|
|
20 months |
18.9% |
|
|
20 months |
18.9% |
|
|
20 months |
18.9% |
|
|
20 months |
18.9% |
*Annual fee of £24
Charging into the top spot is the Post Office Money Matched Credit Card, which comes with 27 months of spending interest-free.
Clydesdale and Yorkshire Banks also offer up an impressive 26 months each, with the rest offering 24 months or less.
Compare even more 0% credit cards with loveMONEY
Cashback credit cards
Cashback credit cards, as their name suggests, give you cashback on your spending, a perfect way to get a little back this Christmas.
Arguably the best one around is the American Express Platinum Cashback Card. You get 5% cashback for the first three months up to £125. After that, there’s a 1.25% flat rate on all of your spending and there’s no cap. Your cashback rate doubles to 2.5% on your card’s anniversary month each year, though you do need to spend at least £10,000 in the year to qualify.
Watch out for the £25 annual fee though. The representative APR is 28.2%.
Alternatively you could go for the American Express Platinum Cashback Everyday Card which also offers 5% cashback for three months, but only up to £100. After that the cashback is tiered: 0.5% cashback on spending up to £3,500, 1% up to £7,500 and 1.25% on spending up to £7,500. This one has an APR of 22.9% and no annual fee.
Alternatively there's the Santander 123 Credit Card. You’ll get 1% on supermarket shopping (including that massive turkey), 2% in department stores and 3% on petrol and train fare up to £300. It does have that brilliant 23-month interest-free period on purchases, but there's also a £24 annual fee (£36 from January 2016). Representative APR is 16.5%.
Read The best cashback credit cards for more.
Reward credit cards
It's not just cashback though - you could snap up a rewards credit card, which will offer you some form of loyalty points on your spending. Great for bagging some freebies on your Christmas shopping.
Those who collect Clubcard points can earn a few extra by using the aforementioned Tesco Bank Clubcard for Purchases. But if you really want a boost have a look at the 17-Month Tesco Bank Purchase Card with 1000 Clubcard Points which gives you a 1000-point boost if you make a purchase or balance transfer within two months of account opening. Both cards reward you with five Clubcard points for every £4 you spend in store, or one point for every £8 spent elsewhere. The representative APR is 18.9%.
Nectar collectors have a choice of cards to earn extra points. The Sainsbury’s Nectar Purchase Credit Card MasterCard gives you two points for every £1 spent on Sainsbury’s shopping and fuel and one point for every fiver spent elsewhere. Representative APR is 18.9%.
The Nectar Credit Card from American Express gives you an impressive 20,000 bonus points when you spend £2,000 in the first three months. You can also collect up to four Nectar points for every £1 spent at Nectar partners and one point for virtually every pound spent elsewhere. There is a £25 annual fee but it’s free for the first year. The Representative APR is 25%.
Flying somewhere exotic in the New Year? There are credit cards offering whatever points you want to collect, be they Avios, Virgin Flying Club Miles, Etihad Guest Miles or Emirates Skyward miles. Find out more at The best air mile credit cards.
Take it easy
Though these cards offer loads of benefits, it can be easy to go a bit loopy with them as you’re not paying upfront.
Make sure you keep track of what you’re spending so that you can make those post-Christmas repayments, otherwise any fees you build up may undo the perks of the card.
Compare loads of top credit cards with loveMONEY
Have more cash for Christmas:
Five ways to make cash from old toys and games