How to find the right credit card for you
I clear my balance every month. Which cards offer the best deal?
If you pay off your credit card in full each month you won’t be charged interest. Therefore a 0% deal won’t benefit you. However, you can get more from your credit card by opting for a cashback or reward card.
Santander’s 123 Cashback Card, for example, gives you 3% back on fuel purchases (up to a maximum of £300 a month), 2% back on department store spending and 1% back on supermarket shopping. You will, however, pay a representative APR of 18.9% (variable) on any borrowing, plus an annual fee of £24. The fee should soon be offset by the generous cashback scheme.
Another great option is the American Express Platinum Cashback card. Depending on where you spend your money, this could be a better deal than the Santander card. There is a £25 annual fee but you earn cashback regardless of where you use your card – it isn’t restricted like the Santander deal. The Amex card pays 5% cashback for the first three months (up to a maximum spend of £2,000). You then earn the standard rate of 1.25%. On the anniversary of you taking the card out, you’ll earn a higher rate of 2.5% for one month. The representative APR on this card is 18.5% (variable).