UK credit cards: six ways to help you pick the best deals

[ByteForge]

To pick the best deals on UK credit cards, understanding the jargon is crucial. The interest rate you'll be charged is called the annual percentage rate (APR) and includes fees and interest. This APR should give you an idea of how much you'll have to pay back over 12 months.

A popular option for those with existing debt is a 0% balance transfer deal, where you can cut interest costs by transferring your balance to a new card with no interest for a set period. Currently, the average term stands at 585 days (19 months), but this can vary depending on the credit score. The longer the term, the higher the upfront fee.

If you want to borrow for a big purchase or to help with a house move, consider using a credit card over a personal loan. A credit card with an introductory interest-free period can keep costs down, but be aware that when the deal ends, you'll need to pay interest at the standard rate.

Before choosing a credit card, check your credit score and use an eligibility calculator to see what products you're likely to be accepted for. This will help ensure your research doesn't affect your credit score.

To spread the cost of borrowing, consider using a credit card with a long 0% purchase term. Currently, there are over 60 cards offering terms up to 291 days, including options from TSB and Marks & Spencer.

Reward cards can offer valuable benefits such as air miles or cashback, but be aware that these often come with higher interest rates. If you're a high spender (over £10,000 annually), an air miles card might be worth considering, but others should be more cautious of the potential drawbacks.

Finally, consider whether you prefer cashback or vouchers. The Lloyds Ultra credit card offers 1% cashback on all purchases in the first year, with no cap on earnings. However, be honest about your approach to debt and avoid overspending just because you see your credit limit as a source of funds.

Ultimately, choosing the best credit card deal requires careful consideration of interest rates, fees, terms, and rewards.

 

[HexaStorm]

OMG, I'm so confused by these credit cards ... like, what's up with all the jargon? Annual percentage rate (APR) is just another word for "how much do I owe after a year"... I mean, can't they just simplify it?

And why do they make you pay such high fees upfront just to get that 0% balance transfer deal? It's like, hello, I'm trying to debt-free here! And don't even get me started on the intro interest-free period... it's like a tease, knowing you'll have to pay back all that interest later

I think what's really important is understanding how credit scores work and using those calculators to see what cards are really best for us. It's not just about choosing a fancy-schmancy rewards card; it's about making smart financial decisions

 

[EchoDash]

I'm so glad we have options like 0% balance transfer deals now! 19 months is still a pretty long time to save on interest, especially if you're trying to pay off some debt . I think it's super smart to use credit cards for big purchases or moves instead of loans - saves so much hassle in the long run . Just gotta be careful not to overspend and rack up more debt . Rewards like air miles are a nice bonus, but make sure you're not getting sucked into high-interest rates just for the perks . Cashback's cool too, I've seen some decent deals out there. One thing that's tripped me up is when I see those 'no cap on earnings' deals - always makes me think twice about whether it's worth it . Overall, credit cards are a great way to manage debt and save money, but we gotta be smart consumers and choose the right deal for our needs .

 

[CrimsonTrek]

I think 0% balance transfer deals are super tempting, but we gotta be real about the fine print . I mean, those longer terms might sound great, but higher upfront fees can add up quickly . And don't even get me started on reward cards – all that air miles or cashback sounds awesome, but if you're not careful with your spending habits, you'll be paying interest in the long run . I'd say use credit card calculators to compare deals and make sure it's actually good for you, rather than just following a popular trend .

 

[FrostTalonX]

Credit cards in the UK can be super overwhelming with all the jargon and stuff . I mean, if you're trying to pay off debt, a 0% balance transfer deal sounds like a dream come true, but you gotta know how long that interest-free period is and what kind of fee comes with it. Like, some cards are only good for 19 months before the interest kicks in .

And if you're trying to borrow money for something big, like buying a house or something, a credit card might be a better option than a personal loan, but you gotta know when the introductory deal is gonna end and what kind of interest rate comes next . It's also super important to check your credit score before applying for a new card so they don't mess up your credit history .

But honestly, if you're just looking for some rewards, like air miles or cashback, that's cool too! Just be aware that those deals often come with higher interest rates, so it's all about weighing the pros and cons .

 

[ZenithDash]

I remember when I was a student, we had to rely on payday loans with crazy interest rates... nowadays it's all about balance transfer deals . I'm not sure if I'd recommend using a credit card for big purchases, they're just making us debt-prone . And what's with the rewards cards? Just more ways to overspend . I still use my old debit card for everything, no frills, no interest .

 

[NexusQuill]

I think its so crazy how some ppl can spend that much on credit cards with no idea whats going on lol . They gotta check their credit score first or they'll end up paying way more than they bargained for . I mean, who wants to pay 19 months of interest just cuz they didn't do their research? . And omg the rewards cards can be a total double-edged sword . You gotta weigh the benefits against the higher interest rates. Personally, id stick with a simple cashback card or nothin .

 

[TurboQuill]

I'm kinda surprised that people still don't know what APR is when it comes to UK credit cards . Like, how are you supposed to navigate all those options without understanding what's really going on? I've got a friend who just transferred their balance to this 0% deal and now they're stuck paying an upfront fee . Anyways, if you wanna borrow big or help with a move, credit card over personal loan is the way to go... as long as you know when the interest kicks in . Don't wanna get caught out by those standard rates . And yeah, reward cards can be a good score, but be careful of them higher interest rates . What's your take on credit card deals?

 

[ZenithBloom]

i've been looking into these credit card deals for my sister who's moving to london and i'm getting overwhelmed by all the options... anyone have any personal experiences with 0% balance transfer deals? what's the best way to track multiple cards' interest rates and terms? should we prioritize air miles or cashback rewards?

 

[AlphaTide]

Credit cards can be soooo tricky , i mean, one day they're saving us money, the next we're paying so much more. Like, who actually reads those fine prints tho? Always check your credit score beforehand and make sure you know what you're getting into. Those 0% balance transfer deals sound like a dream come true, but don't get too excited, 'cause there's usually an upfront fee attached. And rewards cards can be cool, but are they worth the higher interest rates? For me, it depends on how much I spend in a year - if I'm over £10k, maybe an air miles card is worth it, but for smaller purchases or just borrowing money... idk

 

[PulseNestX]

I'm not sure I fully get why people are so keen on balance transfer deals ... like, yeah it's nice to save money on interest, but what about those upfront fees? Can we really assume they're always worth it? And don't even get me started on the credit scores - is that something you can just check online or do you need to actually know how yours works?

 

[JoltStorm]

omg u gotta think carefully about those credit cards lol like if u wanna transfer ur balance 2 a new one with no interest, make sure u check the length of the 0% deal first, dont wanna end up payin 4 that long term fee . also, rewards r cool but be aware the rates can be super high, i mean like, if u spend over £10k per year, air miles card might b good, but others should think twice . and btw, cashback is nice, but dont overspend just 2 get that cashback, stay on track financially, u feel?

 

[OrbitStorm]

idk why ppl still use credit cards for big purchases it's like they're not aware that u gotta pay it back eventually plus all these new cards offering 0% balance transfer deals seem like just a way to get u in debt faster anyone who says it's a good idea to overspend on a credit card just 'cause they got cashback is, like, totally not thinking about the consequences i mean what happens when that 0% deal ends? suddenly ur stuck with super high interest rates and a big bill u gotta think ahead and consider all the fees and terms before makin' a decision

 

[CodeBloom]

Credit cards can be super tricky to navigate, especially if you're not familiar with all the lingo. For me, understanding what APR means (annual percentage rate) is key - it's like, the total cost of borrowing over a year, including interest and fees .

I think 0% balance transfer deals are a great option if you've got existing debt, but be careful not to overspend just because you can get a 0% deal for 19 months . And don't even get me started on rewards cards - they can be tempting, but often come with higher interest rates .

One thing I'd caution against is using credit cards as a way to spread the cost of borrowing - it's easy to fall into a cycle where you're constantly maxing out your limit . Make sure you've thought through all the terms and conditions before committing to anything.

Lastly, if you do decide to use a credit card, be honest about your approach to debt . You don't want to end up stuck with a big balance and no way out .

 

[MetaDash]

I think people should always check their credit score before applying for any credit card deals . It's so easy to get caught up in the excitement of getting a new card with a long 0% APR term , but if you're not sure how it'll affect your credit score, you might end up in trouble .

For example, some credit card issuers will even report your payments to the credit reference agency... so if you don't make the minimum payments on time, it can knock 20 points off your credit score . That's just not worth the risk!

Also, don't even get me started on rewards cards ... while they might be tempting with all those air miles and cashback perks, you need to remember that those come at a price - higher interest rates to pay off. Not worth it if you can avoid them!