The Best UK Credit Cards To Have

To find the best credit cards in the UK market, you first have to make sure why you need it and for what you will use it. There are different types of credit cards that are all suited for different consumer needs. In this article, we shall look at:

  • The different types of credit cards
  • 0% interest cards
  • Finding the best credit card deals
  • Cashback and reward credit cards

What different credit cards are there?

There are primarily three different types of credit card that you must bear in mind when comparing credit cards. They may all suit your needs, but each type specialises in certain areas:

0% interest rate purchase cards allow you to make purchases on credit and upfront. Once you have paid for your items or services in this way, you are required to pay off the amount spent over a period, typically a set number of months, without getting charged extra interest charges.

Balance transfer cards are a special type of credit card that allows its user to transfer a current credit card balance to a different card that charges less interest. This can amount to a huge saving for those with a high credit card debt.

Reward credit cards can be great for earning bonuses just by doing everyday spending. This type of credit card rewards consumers with loyalty points or cashback bonuses which can mount to a great saving over time.

How to decide which is the best credit card type

The type of credit card that suits your needs the best would depend entirely on your circumstances and current financial standing. While there are many credit card deals to be had, a poor credit score can severely limit your options. The credit card that offers you the best APR should typically be the primary choice.

A woman is paying by credit card at a shop

One important factor which helps to determine the right credit card for you is how you plan to use it. If you can make full repayments every month, then a 0% interest rate card may be of less relevance to your spending habits compared to a cashback and reward card, for instance.

The most straightforward way to find a credit card deal that suits you is by using an online comparison tool.

On the other hand, for consumers who have mounted up a large amount of card debt, it would be more relevant to opt for a balance transfer credit card. There is typically a balance transfer fee that is charged, as well as an initial interest-free period when switching to a new card. It is important to pay off the balance in full before the interest-free period ends to make the most savings.

Find the best credit card deals

The most straightforward way to find a credit card deal that suits you is by using an online comparison tool. By making use of a credit card comparison site, you can access the most information possible on multiple credit cards at a single time, depending on your search criteria.

On average , the number of credit cards used by cardholders in Britain is 1.7

It is important to also bear in mind that, while you may wish to proceed to apply for a credit card that appears to be the best deal, you may be rejected because of your credit rating. To avoid a situation like this, which would further damage your credit score, it is advised that you also use an eligibility checker before you apply for a credit card. In this way, you do not run the risk of a rejected credit application and can proceed to apply for the best credit deals that apply specifically to you.

Cashback and reward credit cards

Cashback and reward credit cards are similar; however, the primary difference is that cashback cards reward the user with cash instead of loyalty points. The reward schemes between these two types of credit card are similar, however, and the primary way that they function is by rewarding with points for every pound that you spend.

The most cashback and reward points are offered by cards that require you to pay an annual fee. It is therefore important to gauge how much you plan to spend throughout a year before applying for a reward credit card that carries a fee. Many cards of this type offer an initial period with a higher reward rate, followed by a modest rate for the rest of the year. The pros and cons of each reward credit card deal that you find largely depend on the goods and service that you spend on, so make sure to check what each card can offer you closely.

Questions about UK credit cards:

What charges do I have to pay with a credit card?

There are multiple credit card charges. The interest you have to pay when using the credit card is the primary charge. Some credit cards can come with annual or monthly fees as well. If you happen to breach your credit card terms by delaying payment or exceeding your credit limit, you are very likely to incur a fine or charge by your credit card issuer. Additional services such as using your card abroad and transferring card balances may also require a charge to be made to your account. You may, however, avoid having to pay some of these charges if you understand how credit cards work.

What is the credit limit on a credit card?

Your credit card provider determines the credit limit that you start with on a credit card. The exact figure depends on the state of your personal finances and your credit rating or credit score. Your credit card issuer reserves the right to change your credit limit as you keep using your card. You will be charged a fee for exceeding your credit limit with most UK credit card providers.

What happens if I miss a credit card repayment?

Missing a credit card repayment usually incurs a penalty charge. However, the most substantial risk you take when missing a credit card repayment is damaging your credit score, as well as losing out on any promotional offers you received with your credit card. Monitor your credit limit and payments properly to avoid missing essential credit card repayments and avoid incurring extra credit card charges.