When deciding on the best credit cards in UK from the many options available, it is helpful to first understand what a credit card is and how credit cards function.
What Is Credit Card?
Credit cards, in essence, serve as a tool to help individuals manage their finances by allowing them to borrow money up to a certain credit limit, which is subsequently paid back in whole or in monthly installments. The amount that must be repaid is decided by the interest rate as well as any special incentives, which frequently include interest-free periods when the card is originally issued.
Credit cards are classified into several types, including balance and money transfer alternatives that help you manage existing debts or short-term cash flow concerns. There are other cards geared toward consumers purchasing large-ticket products that provide low or no interest periods, as well as cashback, incentives, and other advantages. Finally, certain cards are expressly created for business users, travellers, or people trying to improve their credit score.
We assist you in navigating the UK market to locate the best credit cards for you. These cards were chosen based on features like interest rate, annual fees, promotional offers, interest-free periods, incentives, and cashback.
Determine Which Credit Card Is Best For You
Money to the Masses has partnered with GoCompare to assist you in finding the best credit cards for you. By providing a few simple details, you’ll be given a personalized list of the best credit cards depending on your specific situation. You may arrange the results by card type, total fees, and even cashback given if you choose the aspect that most interests you. To make things even easier, pre-approved credit cards will be highlighted, so you can be certain that you’ll be accepted if you apply. Your information will be used for a soft credit search, which means your credit score will not be affected. To get started, click on this link.
Top 10 Best Credit Cards In UK
Here is the best credit cards in UK that you need to try.
1. Best 0% Purchase Credit Card
- The best option for spreading the expense of significant purchases.
- 21.9 per cent variable representative APR
- Interest-free period: There will be no interest on purchases for the next 24 months. Debt transfers are eligible for 0% interest for 24 months, with a 2.9 per cent fee.
- Benefits include earning one point for every £1 spent at M&S and five points for every £5 spent at other merchants. with your M & S Sparks card to gain even more points.
- There is no annual fee.
- What we like about it: it has one of the longest interest-free periods, and unlike its competitors, it is guaranteed rather than conditional. It also features a slightly reduced APR after the interest-free term, and you may earn points as you spend.
2. Best 0% Balance Transfer Credit Card
- Best for: transferring existing credit or store card debt without incurring a fee
- 20.9 percent variable representative APR
- Period of No Interest: up to 21 months
- There is no transfer cost.
- Benefits: Earn up to 3 Nectar points for every £1 spent at Sainsbury’s, Argos, Habitat, or Tu Clothing. In the first two months, you may earn up to 5,000 extra Nectar points.
- Why we like it: Although there are other cards with longer 0% interest terms, there is no balance transfer charge with this choice, and you can also earn Nectar points.
3. Best Money-Transfer Credit Card
- Best for: Paying off larger debts
- Representative APR: 22.9 percent, based on the applicant’s unique circumstances
- Interest-free period: up to 18 months, depending on circumstances.
- Transfer fee of 2.99 percent or 3.49 percent
- Important information: The 0% rate applies only to money transfers made during the first 60 days of account creation.
- What we enjoy about it: It boasts the longest interest-free duration (though it may be shorter) and a reasonable transfer cost.
4. Best Credit Card For Credit Development
- Tesco Bank Foundation Credit Card
- People with bad or no credit are the best candidates.
- 27.5 percent variable representative APR
- Starting credit limit: £250 to £1,500, with monthly payments starting at £25.
- A minimum yearly income of £5,000 is required, and CCJs are considered if they are more than 18 months old.
- Benefits include earning Tesco Clubcard points; tracking spending via a mobile app; and three years of free access to your credit record and score.
- Why we like it: Although it is a little pickier about who it will accept, Tesco has one of the lowest APRs and also provides Tesco Clubcard points and access to your credit record and score.
5. Best Cashback And Rewards Credit Card
- Everyday Cashback on American Express Platinum Credit Cards
- Best for: Cashback and benefits with no fees.
- 25.3 percent variable interest rate
- For the first three months, you’ll get 5% cashback on purchases (up to £100), then 0.5 percent on spending between £0 and £10,000, and 1% on everything over £10,000 after that. Spend a minimum of £3000 and receive payback after 12 months.
- Pre-release tickets to music, movies, and theatre through American Express Experiences, as well as offers and savings from selected travel and retail partners.
- Maximum interest-free period on purchases: 56 days if paid in full each month (22.2 percent variable APR on purchases).
- There is no annual fee.
- Why we like it: American Express is recognised for its market-leading rewards programmes, and this card does not disappoint, offering appealing cashback and incentives without the exorbitant annual fees associated with some of its other cards.
6. Best Travel Credit Card
- Best for: Making money while spending it both abroad and in the UK.
- The foreign transaction cost is 0%.
- Cash withdrawal fee: 0%
- 22.9 percent variable representative APR
- Benefits include 0.25 per cent cashback on daily transactions (excluding balance transfers, money transfers, cash withdrawals, purchasing currency or travellers’ checks, and gaming-related purchases). Barclaycard Entertainment offers discounts on live events.
- Why we like it: For individuals who can pay off their amount in full each month, this card offers cashback and points while not incurring international transaction or cash withdrawal fees.
7. The Best Low-Interest Credit Cards
- Best for: Reducing fees if you can’t pay off the entire debt each month.
- APR of 9.9 percent variable representative
- Variable 9.94% balance transfers
- Purchase price varies by 9.94%
- £0 in annual fees
- Why do we like it? For individuals who do not want to switch between interest-free initial deals, Lloyds Bank offers a low APR for a lengthy period of time, allowing you to budget more simply.
8. Best Business Credit Card
- Best for: Businesses that want to win awards.
- Representative APR: 29.90% variable (for some businesses, the rate can be as low as 9.9 percent)
- The annual charge is £99.
- A credit line of up to £150,000 is available.
- Benefits include no foreign exchange or UK ATM fees, unlimited supplemental cards, 1% cashback or 1 Avios for every £1 spent, and 10,000 bonus points after spending £5,000 in the first three months.
- What we enjoy about it: In a crowded field, the Capital On Tap Business Rewards card strikes a balance between no-frills, fee-free choices and all-singing, all-dancing rewards cards with sky-high annual fees.
9. The Best Student Credit Card
- Best for: Students who want to establish good credit habits.
- 18.9 percentage points
- Credit limit: Subject to status, a credit limit of up to £500 is available.
- Benefits include 0% interest if you pay the bill in full each month.
- There is no annual fee.
- What we enjoy about it: It is a fantastic first venture into credit cards for cautious young people, offering a reasonable credit limit and the benefit of being interest-free if you pay off the debt in full each month.
10. The Best All-Purpose Credit Card
- Best for: checking all the boxes
- 24.7 per cent variable representative APR
- Interest-free period: 26 months of 0% interest on balance transfers; 20 months of 0% interest on purchases
- Benefits include 0.5 per cent cash back on all purchases; no foreign transaction fees on purchases made abroad in local currency; and access to Santander’s “Retailer Offers,” which include up to 15% cash back at a variety of major retailers when you use your card, as well as 25% cashback on five welcome offers.
- The annual charge is £36.
- Why we like it: This card combines a long interest-free term, a moderate APR, and rewards without feeling cheated.
How to Choose the Best Credit Card
When considering your alternatives, the first thing to consider is whether you require a credit card. Can you afford to take on debt and make monthly payments? Are there any alternative financial products, such as personal loans, that would better fit your needs and be less expensive? While credit cards offer several advantages, they are not appropriate for everyone and can cause major financial issues if overused or mishandled.
Credit Cards Have Advantages And Disadvantages
- If you use a credit card to make a transaction between £100 and £30,000, you are covered under Section 75 of the Consumer Credit Act if the products or services are defective, are not delivered as promised, are not as advertised, or if the trader or retailer goes out of business.
- Sensible credit usage may help enhance your credit score, which can help you get loans, mortgages, and other types of borrowing in the future.
- Credit cards can be used to decrease or pay off other debts, such as personal loans, shopping cards, or payday loans. Making the most of interest-free periods allows you to save money and maybe pay off debts sooner.
- If you can pay off the card in full each month, you can take advantage of fantastic cashback and incentive offers from a variety of suppliers.
- Credit cards may be pricey, with interest rates and fees sometimes making them more expensive than alternative borrowing choices.
- If you start missing payments or borrowing more than you can possibly pay off, it’s easy to become stuck in a debt cycle if you’re not careful. In the long run, this might harm your credit score and make future borrowing difficult. If you are in this circumstance, please read our post on
How to Apply For A Credit Card
The application procedure for a credit card is quite simple, with many online applications instantly informing you if you have been accepted. You will often be required to submit your name and address, date of birth, nationality, job status, and salary or income. Some applications may require additional identification, such as a copy of your passport, driver’s licence, bank statement, or most recent utility bill.
Considerations When Applying For A Credit Card
Before submitting the application, evaluate your eligibility and chances of acceptance, as unsuccessful applications will reflect on your credit report. Checking your credit score using services like Experian, Clearscore, MSM Credit Monitor*, or Credit Karma is a smart place to start because it will give you a decent sense of your chances of success.
Furthermore, many card issuers feature online eligibility checkers that can inform you how likely you are to be accepted without making a mark on your credit report. If you are turned down for a credit card, the golden rule is to not apply for any more. Instead, find out why you were turned down and how you can improve your credit score.
Our post “How to Improve Your Credit Score Quickly” has excellent recommendations on how to do so. A link with an asterisk beside it indicates that it is an associated link. Money to the Masses may get a small charge if you click on the link, which helps to keep Money to the Masses free to use. However, as you can see, this has had no effect on this unbiased and balanced assessment of the product.