What Credit Card Is Best For You

There are lots of good reasons for getting a credit card. Maybe you want to make a big purchase, or you’re looking to increase your credit score. Building your credit score is extremely important and having no credit can make you look as bad as if you have poor credit. So it works in your favour to get a credit card, spend on it, and always pay it back. That way it shows you’re a responsible lender.

But for others getting a credit card may be a way to manage your debt. For example, if you transfer all of your existing credit card debt onto a 0% interest card. Or get a cash sum from your credit card to pay off existing debt. If you’re thinking what credit card is best for me then I may be able to help. Which one you choose will depend on the type of financial position you’re in.

What credit card is best for you

The golden rule for having a credit card is always to pay it off in full if you can. This shows responsible lending and will help you.

The other thing to consider is that not all credit cards are created equal. And just because you’re accepted for one doesn’t mean you’ll be accepted for them all. If you can check your eligibility for a credit card before applying so you can gauge the decision. If you apply for a credit card and get rejected it can harm your credit score.

Balance transfer card

If you’re someone who is trying to repair previous credit card damage and want to avoid too much interest then a balance transfer card is the best option for you. To try and clear down as much debt as possible you can transfer your existing debts onto a balance transfer card. For some, you’ll get a trial 0% interest period (anything from 6 months to 2 years). This gives you time to work on clearing your debt.

Just remember to keep an eye on when the introductory period is over as interest rates may jump. If your credit rating is bad you may find that some balance transfer cards won’t accept you as you’re too much of a risk. That’s why it’s so important to check your eligibility before applying.

What credit card is best for you if you have bad credit but want to repair it

There are a few options called repair credit cards.  They’re there for people who specifically have bad credit and want to build up their score again. The main thing to note with these is that the interest rates are going to be high. But it’s a great stepping stone if you want to get back on a good track and show you’re financially capable.

If you get a repair card use it responsibly and make sure you pay back your balance in full. If you continue to do this over a longer period you should see your credit score start to rise.

A basic credit card with a low % APR

If you’re the kind of person who pays off most of their bill but never quite clears it off then you’ll want a standard credit card with a low % APR. This is the type of card the majority of people will have at some point. The interest rates will be slightly lower but you won’t get an interest-free period or any benefits. But it’s a good idea if you’re going to chip away at the balance over time.

Rewards credit card

Rewards credit cards allow you to collect points which give you a value. For example, American Express does a British Airways card where you collect Avios points. These points can be transferred into flights and it’s a card I’ve had myself and enjoyed many a flight with. You can also get more general rewards credit cards. For example, the gold American Express which I also have gives you points. But you can transfer those points into any number of things across different airlines, hotels, or even transfer into Amazon vouchers.

We chose this option for all of our house renovation spending. We had the money all saved so knew we could pay everything off but this gave us an added benefit. And when you open a new card there’s usually a sign-up deal to get extra points if you spend a certain amount in the first X number of months.

There are loads of rewards credit cards including Tesco, Nectar, and Marks and Spencer. It’s worth shopping around and seeing which one will benefit you the most.

Cashback card

If you’re the kind of person who is good at keeping up with payments and generally clears your balance in full then a cashback credit card may be the best credit card for you. Each time you spend on it you’ll get a small portion of your spend back. It’s not going to make you loads (unless your spending is super high) but it’s a nice little extra on top.

Do you know what credit card is best for you?

Pin It