uk.creditcards.comOur Best Credit Cards May 2024 | money.co.uk

Money Menu Personal finance Credit cards Loans Banking, savings & investments Mortgages Credit cards Credit cards Credit building credit cards Gold & platinum credit cards Balance transfer credit cards Bad credit credit cards Money transfer credit cards 0% purchase credit cards Instant decision credit cards Mastercard credit cards Rewards credit cards Student credit cards Visa credit cards Air miles credit cards Prepaid cards Credit cards guides Loans Loans Secured loans Guarantor loans Personal loans Debt consolidation loans Bad credit loans Low interest loans Bridging loans Loans guides Banking, savings & investments Savings accounts Investment ISAs Private pensions Instant access saving accounts Cash ISAs SIPP pensions Fixed rate bonds Online stock trading platforms Pension transfers Money transfers Current accounts Share dealing accounts Mortgages Mortgage comparison First time buyer mortgages Remortgages Buy to let mortgages Fixed rate mortgages No deposit mortgages Guarantor mortgages Help to buy mortgages Variable rate mortgages Bad credit mortgages Interest only mortgages Mortgage calculator Equity calculator Stamp duty calculator Mortgages guides Insurance Home & tech Motoring Leisure, health & life insurance Home & tech Home insurance Mobile phone insurance Appliance insurance Wedding insurance Gadget insurance Landlord insurance Motoring Car insurance Breakdown cover Van insurance Multi car insurance European breakdown cover Motorbike insurance Temporary car insurance Car warranty insurance Learner driver insurance Leisure, health & life insurance Pet insurance Health insurance Life insurance Travel insurance Income protection insurance Whole of life insurance Bicycle insurance Unemployment insurance Over 60s life insurance Golf insurance Travel Travel Travel Travel money Turkish lira exchange rate Euro exchange rate Currency buy back Travel insurance US dollar exchange rate Prepaid travel cards Business Business Business All business products Business loans Business insurance Business credit cards Start-up business loans Business credit scores Business bank accounts Business savings Card payment solutions Business energy Invoice finance Guides Guides Money moments Guides Credit cards guides Current accounts guides Home insurance guides Loans guides Savings accounts guides Life insurance guides Mortgages guides Pensions guides Travel insurance guides Car insurance guides Investing guides Tools & calculators Money moments Getting married Going to university Planning for retirement Going on holiday Managing the cost of living Starting a business Building your credit score Research & resources Credit Cards Compare our best credit cards Find the credit card that works for you Whether you want to spread the cost of purchases, pay off debt, or earn rewards on your spending, we have you covered. Compare credit cards with our partner Uswitch We’ve partnered with Uswitch to help you find a great deal. Start your eligibility journey now 1 Answer a few basic questions about your circumstances 2 We’ll show you the cards you’re likely to get, so you can apply with confidence 3 Your credit score will always be protected Check eligibility Trustpilot On this page What is a credit card Eligibility How to choose Credit card deals Types of cards How to compare Jargon buster FAQs Author Salman Haqqi Editor Lucinda O’Brien Last updated February 7th, 2024 What is a credit card? Credit cards allow you to borrow money as and when you need it to pay for goods and services. You get an agreed maximum credit limit you can borrow at once and there’s a minimum monthly repayment , but you are free to borrow or repay anything you like within these limits. Credit card transactions in October 2023 [1] 377.7 million How credit cards work Credit cards work by linking the physical card, or account number for online spending, with the borrowing facility - that means when you pay with a card, it’s your provider that pays the cash to the merchant. As you use your credit card, you’ll build a balance of debt that you owe to the provider. Every month you’re expected to repay the debt that you’ve accrued by using your credit card. Here you have some options: You could pay off the whole balance in full, taking your balance to zero. Doing this ensures that you won’t be charged interest on balance you had built up. You could choose to pay off a part of the balance , and roll over the remaining balance into the next month’s billing cycle. Here you’ll be charged interest on the remaining balance , which will be added to next month’s balance. You could pay just the minimum monthly payment , which is the minimum amount your provider expects you to repay every month. Sometimes that’s a flat charge, but usually it’s a percentage of your balance. Making this payment is vital, as missing it will hurt your credit score . A credit card doesn’t help you spend beyond your means. When used wisely, it’s a tool to make purchases, earn rewards or build credit for better deals in the future." How do lenders assess your eligibility for a credit card? To be eligible for a credit card in the UK, you must be: At least 18 years old a legal UK resident The first decision providers make is whether to offer a credit card at all. Then they figure out how much to let you borrow - your credit limit - and at what interest rate - the APR. For this they consider three factors: Your income. You’ll need to provide details about your salary and any other regular income you get from other sources. Your credit score. The lender will carry out a hard credit check to find out how responsible you’ve been in paying off credit in the past. This will leave a mark on your credit file and may possibly affect your credit score temporarily. Existing debt. Providers want to know how much debt you already have to see if you can afford to take on more debt and repay it. How to choose the best credit card for you If you need to pay off debt ... If you already have existing credit card debt on one or more cards and want to pay it off at a lower interest rate, then you should consider a balance transfer credit card . These cards allow you to move your debt from your current card(s) to a new one and pay if off at a lower interest rate. Many of these cards also offer 0% interest for several months, though some may charge a small fee to transfer your balance. If you need to make a large purchase ... If you’re planning to make a large purchase such as furniture for your home and can’t afford to pay for it in one go, then you should consider a 0% purchase card , or a 0% money transfer card . These offer long interest free periods so you can split the cost into monthly instalments without paying any interest. Make sure to pay at least the minimum payment every month, and pay off the whole balance before the 0% interest period ends, otherwise you’ll be charged interest on the remaining balance. If you have bad credit ... If you have never taken out credit before, or have a low credit score that you want to improve, then you could consider a credit building credit card . These cards are easier to get approved for and typically charge higher interest rates and have low credit limits. They are best used for everyday spending, with the balance being paid off in full every month. If you keep that up for six months or more, you should see your credit score get a boost. If you want to earn rewards ... If you want to earn rewards on your spending, there are different kinds of rewards credit cards available depending on what you want. Some cards offer air miles or points that can go towards lowering the cost of your air travel. Other cards offer points that you can collect to earn discounts at the stores you like to shop from. With cashback cards you’ll earn cash that your provider may give you directly, either on a monthly or annual basis. Be aware that rewards cards charge high interest rates and often come with annual fees. So they only make...