Which Credit Card is Best for Me?
Credit cards can come in handy for a multitude of reasons. Making online purchases, booking that much longed for trip abroad, making an essential investment such as in a new car or property repair or even as a way of better managing your finances for large purchases.
Whatever you turn to your flexible friend for, credit cards are a simple way of borrowing money and paying it back to the lender on a monthly basis.
What’s the best credit card?
There is a wide variety of different credit card types available. The best credit card for you very much depends on your reason for borrowing and current personal circumstances.
Some credit cards come with additional perks, so check out our guide below to help you navigate through all the financial jargon and discover which credit card will be the best match for you.
What is a 0% balance transfer card?
A 0% credit card allows you to consolidate debt from other credit cards or store cards and transfer the debt to another lender. 0% balance transfer cards give you a set period in which to settle the outstanding debt, so you can save money on interest.
However, the interest free periods vary, so it’s best to pay the debt back before it comes to an end.
What is an interest-free credit card?
An interest free credit card allows you to purchase items or services for a set amount of time without accruing any interest on the amount spent. Interest free periods can vary, so make sure you’re aware of the cut-off date when making any purchases.
Read more about interest-free credit cards.
How to get a credit card with bad credit
Getting a credit card with poor or bad credit isn’t impossible, and there are a range of credit cards specially designed for those with a less than perfect credit history.
What is a cashback credit card
A cashback credit card rewards customers for spending by offering a small percentage back, either monthly or annually. The amount you’ll get back varies from card to card, so check out a comparison on cashback credit cards here.
What is a student credit card?
Student credit cards are great for small amounts of spending for essential items while you’re studying. Credit limits are usually under £500 and you can get up to 56 days to repay any amount borrowed on the card before you’ll need to start paying interest on the amount borrowed.
Using credit cards overseas
Using a credit card while you are abroad is a good way of safeguarding against fraud due to the legal protection they offer, but some can attract high charges for making an overseas transaction – especially if you’re drawing out cash from an ATM.
What is a money transfer credit card?
Money transfer credit cards are great if you need to inject cash into your bank account quickly to cover any unexpected costs or if you’ve gone above your agreed overdraft.
Some even charge 0% on money transfers for a set period. You can find some of the best money transfer credit card deals here.
What is a 0% purchase credit card?
A 0% purchase credit card allows you to purchase goods without having to pay back any interest on the amount for a set period of time. For expensive items, its better to completely clear the debt before the interest free period comes to an end to avoid incurring interest on the outstanding debt.
What is a low interest credit card?
A low interest credit card is exactly that – a credit card that only charges a low interest rate on the total amount you’ve borrowed on the card.
These cards are often most widely available to those with a good credit score, so it’s a good idea to check your eligibility before applying.
What is a prepaid credit card?
Prepaid credit cards will only allow you to spend the amount that you’ve already prepaid on the card – so you’ll never go over that amount and incur interest.
These prepaid credit cards are not linked to your bank account, although you can use it to add funds to the account.
How to choose the right credit card
Hopefully the guide above has given you some helpful information on the different types of credit cards available and given you an idea of which product would be right for you.
To make sure you’re definitely getting the best deal, use our moneymatcher credit card comparison tool to easily compare all the key points such as APR, total cost of borrowing, cost of late and default fees and whether a product has an annual or monthly fee that adds to the overall cost of borrowing.
Simply type in your details and reveal your financial desires and it will even highlight the products you’re more likely to be accepted for, all without making a mark on your credit file.
If you do decide to go with an application (which will involve a credit search) don’t forget that only 51% of the people who apply for a credit card will typically snag the representative APR rate, so you may be offered a higher APR or a lower limit by the lender.