Are you looking for the best credit cards in UK 2023? With so many credit card options available, Selecting the right one can be a bit overwhelming, but there’s no need to worry; I’ve got you covered. I’m about to explore the different types of credit cards available, their features and benefits, and how to choose the best credit card for your financial needs.
Let me share the positive reasons for getting a credit card and the best way to use it. If you can use a credit card well, it can benefit you, unlike I did. Firstly, credit cards can help build your credit history. A good credit history is important if you want to take out a loan or a mortgage in the future. If you use a credit card in a responsible manner and clearing the balance on time each month can show lenders that you’re a liable borrower.
Find your best credit card to enhance your finance
You may be wondering how much you should spend. Stick to 30% of your credit limit. So, if you’ve got a thousand-pound limit, only use 300 pounds. Because this shows that you’re a responsible lender. The best way to use your card is by paying off your balance every month. That means no interest and a nice healthy credit score.
Secondly, credit cards offer a convenient way to make purchases. You don’t have to carry cash around with you; you can shop online or make purchases over the phone. You have extra consumer protection. It’s a good way to pay for holidays and big one-off purchases. Depending on which cards you choose, you could get cash back for purchases you would make anyway.
There are many credit card issuers in the UK who offer rewards and cashback programs. If you make daily transactions using your credit card, you can employ smiles or cash back; you can utilize smiles or cash back; these can be exchanged for travel merchandise or statement credits. This is why you have to choose wisely. Don’t get too dazzled by all the rewards. Look at the figures in APR first, then find the rewards that suit you better.
Different types of credit cards
Several different types of credit cards are available in the UK to get the most out of credit cards. The main factor in identifying the best credit card for you is determining what suits your financial needs. So, for example, is getting money back more important to you? Do you have a family? Would you prefer a mountain of supermarket points to help chip away at the food bill? Do you spend much time traveling and could do with the air miles? Are you trying to consolidate debt and find a zero-percent balance transfer?
Let’s take a look at some of the most popular options. Credit cards with rewards offer points or miles for each pound spent on the card. You can use these points to get travel items or to reduce your statement balance. Some reward credit cards are for bonus points for spending in certain categories, like restaurants or supermarkets. Cashback credit cards offer a percentage of cash back on each purchase made on the card. So, for example, a card might offer one percent cash back on all purchases or higher cashback rates for purchases made in certain categories.
Balance transfer credit cards
Balance transfer credit cards are designed to transfer the balance from one place to another, usually with a low or zero percent interest rate for a certain period. This can be beneficial if you’re carrying a considerable balance on a credit card having a high interest rate and want to pay off the balance without accruing more interest. Credit cards for money transfers let you move fund from your credit card to your bank account , usually with a low or zero percent interest rate for a certain period. This can be useful if you need cash for a large purchase or to pay off debts.
Students’ credit cards
Students’ credit cards are made for those who are new to using a credit card. They typically have lower credit limits and fewer awards or benefits than other credit cards. However, they can be a good way to start building credit and learning how to use credit responsibly.
Secured credit cards
Secured credit cards need a deposit before they can be used. This deposit works as security for the card and can be used to pay off the balance if the cardholder can’t make payments. Secured credit cards can be useful for people with bad credit or no credit history.
5 Best credit cards in UK
Choosing the best credit card? In a minute, I’ll share the top five credit cards. When I do, I want you to consider the interest rate and the fees. If you plan to keep a balance on your credit card, search for a card with a lower interest rate. Here are the top five credit cards, as promised, and in no particular order. It depends on what suits you.
Amex-platinum cash back every day
This credit card is one for you if you want cash as a reward, and there are no annual fees. You’ll get five percent cash back on purchases for the first three months, then ongoing cashback of up to one percent, but you must spend three thousand pounds plus per year to get any cash back whatsoever. After the three months, you get 0.5 cash back on the first ten thousand pounds spent each year and one percent back on everything that’s spent over ten thousand pounds. The APR on the card is 29.4.
Sainsbury’s Bank MasterCard.
You need to have a Nectar card to qualify for this. Get 8,000 bonus nectar points if you spend 400 pounds and over at Sainsbury’s Argos in the first two months, worth 40 quid. As well as a bonus, this card gives boosted points at Sainsbury’s and Argos, though you could earn more points with the AmEx gold Ora makes nectar. That’s if you’re willing to pay a fee. Just to let you know that you can also convert nectar points into air miles. How do the points work? Well, you get one point per two pounds at Sainsbury’s in Argos, one point per five pounds spent elsewhere, and up to six months of zero percent on spending. The APR is 22.9.
Natwest’s longer balance transfer card.
This card has the longest zero percent balance transfer period, so great if you’re trying to pay your credit card off. Your 30-month zero percent offer starts from the account opening, after which standard rates apply. Be aware that the card has a 2.99 percent balance transfer fee but no annual fee. The APR is 23.9 variable.
Barclaycard rewards card
This is a great credit card if you like to travel. You’ll get 0.5 percent cash back on all everyday spending and no transaction fees when you’re abroad. This means that you can withdraw cash or buy things on your travels without any charges and a good exchange rate. You also get up to five months of Apple TV plus Apple Music, Apple Fitness Plus, Apple news plus, and apple arcade for free with your new Barclay card. Remember to cancel it by the fifth month if you don’t want to start paying for that subscription. The APR is variable at 25.9 percent.
Tesco Foundation credit card
This is a great credit card if you’re looking to boost your credit score and you need a better credit rating. The starting credit limits are 250 pounds and one and a half grand, and monthly repayments from 25 pounds. You’ll get access to Tesco Bank Credit View, provided by Trans Union, for three years from your account opening so that you can track your credit score and get monthly updates. You’ll get Club card points everywhere you spend using your card, plus your usual points in Tesco. It’s a slightly higher APR at 29.9 percent.
Now you’ve got your hands on the top five cards, think about which one is most suited to your financial needs. Here are a few tips for you: set up a direct debit to pay off the full balance each month so that you don’t have to worry about the interest and APR. Make sure that you fully understand how to make your Rewards Card work for you so that you get the most out of them. Don’t withdraw cash because you’ll get charged. Only apply for one credit card at a time, and use an eligibility Checker before you do so that you know if you’re more likely to get approved.
