Credit cards – they can give you some extra flexibility in how you pay for purchases with a month’s initial credit and then the option to spread the cost over several months, however you will pay interest on the amount you don’t pay off each month. Credit cards are an easy way to build you credit score as you show that you can manage your money and make regular payments
- What is the best card for me? There are lots of credit cards and not just brands but types of card from each provider so before you get one think about what you’re most likely to use the card for and then shop around for the best deal on this type of card
- 0% purchases cards? These cards offer a deal on purchases so that you pay no interest on them for a period of time usually x months. So if you’re looking for an interest free period on purchases compare the offers on these types of cards at comparethemarket.com/purchasecards. This month there is a great offer on barclaycard.com with 0% on purchases for 12 months on spend up to £5000 – see website for details or click here
- 0% balance transfer cards? These cards allow you to transfer your balance to the new card provider with no interest to pay on your balance for several months – saving you money if you have been paying interest. So look for the offers that have the longest period of no interest and have a reasonable rate after the offer period
- Reward credit cards? If you’re likely to spend a lot on credit cards and pay it off every month. Then it’s less about the rate and more about how good the rewards scheme is for you. Look not just at points but at what’s the value of actual percentage of spend you’re getting back you use the card – Halifax offer a great
- Lowest rate cards? If you think you will use the credit card to borrow short term and not pay it off in full each month then look very carefully at the interest rate they will charge you on any outstanding balance. Cards like Tesco bank have a low rate card at 10.9% check it out here or compare today’s
- Store credit cards? – some store cards attract you in with exclusive in-store deals as they can afford to give back a bit of their margin. However be careful as you may overspend with one retailer buying things you don’t really need (we all do it some of the time!) Do check the rate as it may not be higher than a regular credit card from a financial provider. Compare the rates in store cards with other cards on a price comparison website like comparethemarket.com and to get the most up to date rates in the market always compare to get the best deals on the market
This information is intended for editorial purposes only and not intended as a recommendation or financial advice