Balance transfer credit cards
Getting a balance transfer card can help you to manage your debts. You can move an existing credit card balance onto the balance transfer card and make the most of the 0% interest offer period. When you first move the amount over you will have to pay a fee of 2–3%, although a longer deal may incur higher fees. The best idea might be to choose a card with a smaller transfer fee, but a shorter 0% period. Use our calculator to see which card could save you the most cash and also find out how likely you are to be accepted. Balance transfer cards aren’t designed for purchasing – if you use them in this way, you’ll pay interest on the money you spend.
Find out how you could save money with a balance transfer card
Purchase credit cards
If you need to make a large purchase, this type of card can help you to spread the cost over several months. The cards offer you an introductory period, during which time you don’t pay any interest on your spending, as long as you make the minimum repayment each month. By the time the 0% interest period finishes, you should pay off the balance or move the amount onto a balance transfer card, because the subsequent interest rate could be very high.
Use a 0% purchase card to spread your costs without paying interest
Balance transfer and purchase credit cards
You can use this kind of card if you have debt on a credit card and want to spread the cost of a single large purchase. Bear in mind, though, that you could get a better rate from separate balance transfer and purchase cards.
Find out how to take advantage of a combined credit card
Cashback credit cards
A cashback credit card can reward you for paying off your balance each month by giving you back 1% to 5% of the amount you’ve spent. However, these cards have high interest rates, so you should only use them if you clear your balance each month.
Get a cashback card and earn as you spend
Rewards credit cards
Similar to a cashback card, these credit cards offer rewards if you pay off your full balance each month. Instead of giving you money back, these cards let you earn points that can be used to buy things like flight tickets.
How to get the most from your rewards credit card
Lots of shops will offer you a store card at the till and they might tempt you with an introductory offer such as a discount on what you’re buying at the time. These cards usually have an extremely high rate of interest, so it’s best to turn them down.
Charity credit cards
These credit cards offer the opportunity to give a percentage of the money you spend to a charity of your choice. Although this sounds like a good idea, the charity often receives as little as 25p for every £100 spent. This is a very poor cashback rate of 0.25%. Consider using a regular cashback credit card, and giving the money that you earn to charity. This could mean a much better donation rate of around £1 for every £100 spent.
Why your charity credit card probably isn't worth it
Using your regular credit card abroad will mean that you pay an extra fee of around 3% on every purchase you make. For cheaper holiday spending, consider an overseas spending credit card, which will offer you a lower fee or no fee at all.
Find the best card for spending abroad