By AMY ANDREW and EMMA GUNN
Are you planning on making a big purchase? Do you need to clear your debts once and for all? Or have you decided now is the time to become more spending savvy and get some rewards from your everyday costs?
If used correctly, credit cards can help you get something back or spread the cost of things that you are spend on. There are also plenty of deals around that could help you to avoid crippling interest rates on existing debt and pay off what you owe. (Remember use credit cards wrongly and they can spell bad news though.)
This is Money has scoured the market and picked out what we believe are the best credit card deals to help you make the most of your money. We pick these because we think that they offer something that makes them stand out from the crowd, they may not always have the absolute lowest rate or longest special offer, but they are judged by our independent research to offer a good deal.
Play your cards right: We pick the best credit cards for spending, rewards, travel and clearing debt.
This page is kept up-to-date throughout the year - bookmark it for the very latest developments.
>> For tables of the latest best rates head over to our credit card comparison tool
Best credit card for clearing debt
0 per cent balance transfer credit cards
If you’ve racked up a load of debt and have decided to make a fresh start on tackling it, zero per cent balance transfer cards could be the way to go.
Moving your debt to an interest-free card means that you can freeze its size of your debt, rather than continually play catch-up as interest piles on the pounds.
The right balance transfer card for you depends on your circumstances, so rather than recommend one 'best' option here, we would instead recommend readers go to our in-depth guide to 0 per cent balance transfer cards for the best deal.
Best credit cards for spending on big purchases
0 per cent purchase credit cards
If you’re planning some home improvements or large purchases in the near future and need some extra cash for spending, as long as you are confident you can pay off the full amount within 12 months or slightly longer to avoid high interest rates, a 0 per cent purchase card could be a good option for you.
There are a whole range on offer, but Santander and Tesco Bank are both offering 18 months to pay off your purchases.
The Sainsbury's Nectar Low Rate Credit Card is currently the best deal on the market. It offers an APR of 6.9 per cent and no fees on balance transfers.
The benefit is that if you decide not to pay off the entire balance every month, you will only have to pay minimal interest.
You must have a good credit rating to be approved.
Check out this is Money's favorite low-rate credit card here
Best credit cards for rewards
PROTECTING YOUR MONEY
Another major bonus with rewards cards is the consumer protection you are entitled to, underSection 75 of the Consumer Credit Act 1974.
Put simply, if you use the credit card to buy something worth more than £100, here or abroad, the card issuer is equally liable if something goes wrong.
If you do it right, a rewards credit card could earn you £1,000s worth of goods and services for free – but there are some major loopholes and catches to look out for.
The first thing is the points system, used by most rewards credit cards.
Each company operates under their own system, so make sure you check what each point is actually worth – something that may appear to offer huge bonuses could in reality be almost worthless.
Best overall rewards card: Barclaycard Freedom Rewards Card
It is difficult to pick an overall winner when it comes to rewards credit cards.
Usually the best option for you will depend on where you spend your money - if you often travel with British Airways, for example, taking out a British Airways American Express card will help you to maximize your spending and get free flights.
However, if you find it difficult to pinpoint one area of your life where you spend the most, the best option available for general spending is the Barclaycard Freedom Rewards Card.
What do you get?
You get 10,500 Freedom bonus points - worth £30 - if you spend £500 or more in the first three months after opening the account.
- Two points for every £1 spent in UK supermarkets or petrol stations
- Three for every £1 spent with the bank's wide list of partners. For a comprehensive list of partners, check their site.
- Three points for every £1 spent on online shopping through its Freedom Rewards store.
- Any other spending (including non-Sterling transactions) is rewarded with one point per £1 spent.
USING YOUR CARD FOR BALANCE TRANSFERS
It's important to remember here that it is not usually a good idea to use one card for two things - in this case spending to earn rewards and repaying debt with an interest-free balance transfer.
You should also bear in mind that any repayments you make to the card are put towards paying off your most expensive debt - so while the 0 per cent balance transfer deal runs the debt built up on your purchases will take priority.
This means that in order to start paying off any of your transferred balance you would have to pay off more than the balance of your purchases each month.
However, although this sounds impressive, you have to clock up a hefty 1,750 Freedom points for a £5 Freedom rewards voucher - so building up meaningful results could take a while. Points can be redeemed for vouchers online.
The small print
You pay 0 per cent interest on balance transfers for the first nine months (a 2.9 per cent handling fee applies). APR then leaps to 18.9 per cent.
You do not receive points on balance transfers, cash withdrawals, direct debits or any payments for gambling services including internet gambling and lottery tickets.
Points last three years but you will lose any accrued during a month if a payment is late, missed, or if you spend more than your credit limit.
If you miss two consecutive monthly payments Barclaycard may cancel all your points.
Travel rewards: pay with a credit card to get deals on trips
Best for airline points: British Airways Amex card
Your choice of rewards card will largely depend on which airlines you prefer because a combination of credit card and frequent flyer points are going to get you the best discounts.
The small-print
Each point is only worth 68p - which is not great, value-wise, although the benefits go some way to balance it out. Points expire after 36 months.
Extras include Global Assist, which provides support when you travel outside the UK, in your own language, 24/7. You also qualify for travel accident insurance of up to £75,000 on public transport when you buy your ticket with your BA Amex card.
Automatic enrolment to the British Airways Executive Club also comes with this card, meaning you can collect two extra Avios points when you book a flight or go shopping. So, altogether you will earn three points per pound spent.
There is a £150 annual fee and 15.9 per cent APR means you need to make sure you pay the card off in full each month.
To be eligible you must have a household income of £30,000 and no history of bad credit.
YOUR REWARDS - based on redeeming Avios through BA Executive Club
• 20,000 points
One return flight to Moscow and other locations in Europe, Asia and Africa
• 15,000 points
One return flight to Rome and other locations in Europe
• 9,000 points
One return flight to Berlin and other locations in Europe
One return flight to Moscow and other locations in Europe, Asia and Africa
• 15,000 points
One return flight to Rome and other locations in Europe
• 9,000 points
One return flight to Berlin and other locations in Europe
Best for overseas spending: Halifax Online Clarity Credit Card
The Halifax Online Clarity Credit Card offers a great deal if you want to spend abroad on your card.Those who sign up will also get 9 months interest free on your purchases and balance transfers, but transferring debt to the card will cost you a three per cent fee.
Best credit card for commuters: Santander’s 123 Credit Card
Santander has made the most of a gap in the market following continuing rail hikes with a cashback credit card that enables cardholders to get 3 per cent off the cost of future trains back.
What do you get?
Santander’s 123 Credit Card allows for money to be claimed for train tickets bought at stations or online with any rail company, as well as for season tickets and London Underground tickets.
The bank has recently added 18 months 0 per cent interest on purchases to the deal. This is longest interest-free term available on spending.
Top offers: shoppers can rack up points using Tesco's Clubcard credit card
Best rewards cards for supermarkets: Tesco Clubcard Credit Card for Purchases
The card that’s right for you will depend on where you like to shop (obviously), but the Tesco Clubcard Credit Card for Purchases is particularly rewarding for supermarket spending.
BEST CASHBACK CREDIT CARDS
| Provider | Cashback* | |
|---|---|---|
| 1 | Amex Everyday | 5% |
| 2 | Capital One | 5% |
| 3 | Santander 123 | 3% |
| 4 | Amex Platinum | 1.25% |
| 5 | Nationwide | 0.5% |
| *introductory offer periods vary | ||
You are also eligible for travel accident insurance for up to £150,000 on public transport when you buy your ticket with your card.
Complimentary supplementary cards for family members are available, generating even more cashback for your account.
The small print
Cashback is earned on every full pound spent on each purchase and will be paid by crediting your account each month on the expenditure that has taken place during the preceding 12 months.
You could also consider the Nationwide Select card. It comes with a number of perks such as commission-free purchases abroad and no interest on purchases for 15 months.
This is on top of a cashback deal of 0.5 per cent.
The card come with a standard interest rate of 15.9 per cent and you will need to be a Nationwide current account customer to get the card.
But it could be worth considering switching your bank account to Nationwide if you are unhappy with your current account as it offers some good in-credit deals and added perks.
It's FlexAccount comes with free European travel insurance as well as access to a range of preferential rates on loans, mortgages and savings.
The FlexDirect account offers up to five per cent interest on in-credit interest on up to £2,500 and the FluxPlus Account comes with insurance three per cent interest, free European transactions and travel, mobile phone and breakdown cover.
American Express also offers the Platinum Cashback Credit card which may be a better option for bigger spenders, as well as saving you money in interest as it comes with 16 months with 0 per cent interest on purchases.
American Express also offers the Platinum Cashback Credit card which may be a better option for bigger spenders, as well as saving you money in interest as it comes with 16 months with 0 per cent interest on purchases.
It does not pay and introductory rate boost but it will pay 1.25 per cent on every full £1 spent on the card as well as a double the interest rate - 2.5 per cent - during the card's anniversary once a year.
But, you must have spent £10,001 on the card during the previous 12 months - or £834 each month.
The Platinum Cashback card has an annual £25 fee, which means a monthly spend of £1,000 on the card could earn you £125 over the year,
Read more in source : Daily Mail
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