Best Credit Cards In the UK, October 2024
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It can be difficult to decide on the best credit card when there are many different options available. The trick is to work out which credit card is best for you, meaning you need to consider when, where and how you plan to use it before you apply. This helps you to find the most cost-effective option – and reduce the risk of an unsuccessful application.
NerdWallet’s pick of the best credit cards
The table below shows NerdWallet’s pick of the best credit cards, including 0% balance transfer cards, 0% purchase cards and credit builder cards. Depending on your circumstances you may be offered a different APR or 0% interest period.
Provider | Representative APR | Key Facts | |
|---|---|---|---|
 | 24.9% Representative ExampleLongest 0% interest period | 29 months 0% interest period. 3.49% balance transfer fee. | |
 | 37.7% Representative ExampleLongest 0% interest period | Up to 24 months interest free. 5 Clubcard points for every £4 spent at Tesco, 1 point for every £8 outside Tesco. | |
 | 32.9% Representative ExampleBest credit builder card | Earn points for every purchase. No fees for late payment or exceeding credit limit. | |
 | 29.9% Representative ExampleBest balance transfer card for bad credit | 12 months interest free |
This table is checked and updated regularly. We aim to provide accurate information but prices, terms and conditions of products and offers can change, so double-check first. Credit card data is provided by Fairer Finance.
Partner Spotlight Compare Credit Cards
NerdWallet has partnered with Monevo. Compare credit cards without impacting your credit score.
A limited number of credit cards are included in this comparison service, others are available in the market. Some of the results shown will confirm your eligibility, while others may require further checks.
A beginner’s guide to credit cards
A credit card is a type of payment card that lets you borrow money from the card provider and pay it back over time. A credit card transaction works in the following way:
- Use your credit card to pay either in store or online, taking care not to go over your credit limit, which is the total amount you can borrow.
- You will receive a statement each month telling you the minimum amount you need to repay, and the due date. Always make your payments in good time to avoid late fees and protect your credit rating.
- Unless you clear your balance in full, you will be charged interest on the amount you’ve spent. However, many credit card providers usually won’t charge you interest for up to 56 days, so if you pay your monthly bill on time and in full, you could avoid paying interest altogether.
» MORE: What is a credit card?
Different types of credit cards
There are several different types of credit cards available, so there’s sure to be one that suits your needs. Before you apply, consider how you’re most likely to use your credit card – and how you expect to pay the bill. Some people clear their balance in full each month – which means they could benefit from rewards and cashback – while others pay down their balance over time – which means a low or 0% interest period would be more beneficial. If you’re working on building your credit rating, a credit builder card could help you to achieve this.
- Balance transfer credit cards: These cards typically offer a 0% interest period when you transfer your balance from another credit card. This can save you money on interest, helping you to pay off your debt faster.
- 0% purchase credit cards: This can be one of the cheapest ways to borrow because you won’t pay any interest for a set period of time – so it’s often a good way to spread the cost of an expensive purchase. However, you’ll usually need a good credit score to qualify for the longest 0% offers.
- Money transfer credit cards: You can transfer money into your bank account from a money transfer credit card, sometimes with a 0% interest introductory period. Often used to clear an overdraft, they can also be a cost-effective alternative to a loan.
- Credit builder cards: Designed for people with a poor credit score, or those who haven’t borrowed before, these cards can help you build or repair your credit rating – but tend to offer lower credit limits and higher interest rates.
- Cashback credit cards: You can earn cashback as you spend with these credit cards – but these rewards could be cancelled out by interest if you don’t repay your balance in full each month.
- Rewards credit cards: These cards reward you with points each time you spend, which can then be redeemed with a selection of retailers or exchanged for rewards such as vouchers, flights and upgrades or car hire.
- Travel credit cards: These cards are designed for use when you’re travelling overseas, and come with perks such as preferential exchange rates and fee-free spending. This is one of the cheapest ways to spend overseas – and it’s more secure than carrying cash – but aim to clear the balance as soon as you can, otherwise interest charges will quickly exceed any savings you’ve made.
- Prepaid credit cards: An alternative to credit or debit cards. You top these cards up before you use them, so there’s no need to pass a credit check. They can also help you to budget as you can only spend what’s on the card.
- Student credit cards: These cards are available to students who often have a low income and minimal credit history. They can be easier to get than other credit cards, but tend to have a lower credit limit and higher APR.
Choosing the best credit card for you
There are four main steps when it comes to finding the best credit card, so don’t forget to consider these before you apply:
- Check your credit score: You can check your credit score for free with credit reference agencies like Experian and Equifax, or via platforms like ClearScore and Credit Karma.
- Decide on the type of card you need: Do you need to transfer an existing balance, spread the cost of a purchase or need a card that’s designed for use overseas? Look for the type of card that best suits your needs.
- Narrow down your options: Once you’ve worked out which type of card is best, compare the available options, prioritising those with features that could save you the most money in interest and fees, such as a low or 0% APR, an introductory offer, rewards or cashback or low fees.
- Check your eligibility: Use the broker or provider’s eligibility criteria to check whether you’re likely to qualify for the card you want. This reduces the risk of an unsuccessful application, helping to protect your credit score.
» MORE: How to apply for a credit card
How to compare credit card features
Different credit cards have different features, which can make it harder to compare and decide which is best. In many cases, there will be some trade-offs. For example, cashback and rewards cards may have a higher APR or charge an annual fee; credit builder cards may offer a lower credit limit and higher APR, and 0% purchase cards and balance transfer cards may have a higher APR once the introductory period ends.
To help you find the best credit card offers, here are the main points of comparison:
- Introductory / promotional interest rate: Some cards offer a low or 0% interest rate on balance transfers or purchases for a set period of time. If you can clear your balance before this period ends, you could avoid paying any interest on what you borrow.
- APR: The annual percentage rate estimates how much credit card borrowing will cost over a one-year period. This includes standard interest and fees, however you may be charged additional interest and fees for cash advances, money transfers and balance transfers.
- Representative APR: The provider may offer you a different rate to the advertised APR, depending on your circumstances. So when you see the words ‘representative APR’ this means that at least 51% of customers will receive a rate that is equal or lower than this, and others may be offered a higher APR.
- Credit limit: This is the maximum amount of money that you are approved to borrow using your card. The credit limit you are offered will depend on your income, credit score and personal circumstances, and may increase or decrease over time.
- Charges and fees: Some providers will charge you extra fees when you use your card. This could be an annual fee, which sometimes gives you access to extra perks; late and overlimit fees; cash advance fees; foreign transaction fees; and balance or money transfer fees. Check the terms and conditions for which fees apply to your card.
- Cashback and rewards: Some credit cards give customers extra perks when they spend. Typically this comes in the form of cashback, which is paid directly to your bank account or credit card balance, Air Miles, which can be exchanged for flights and upgrades, or rewards points, which can be exchanged for vouchers or redeemed with selected retailers. Some providers insist on a minimum spend before you can earn rewards, and rewards can expire if they are not redeemed within a set period of time.
How to apply for a credit card in the UK
In most cases, you can apply for a credit card online. Depending on the provider, you may also be able to apply online at a branch of the relevant bank, or over the phone.
- You will need to provide some information so that the provider can run a credit check. This includes details of your income, your address(es) for the last three years, your contact details and your bank details.
- You may get an instant decision, especially if you apply online. However, it can take a few days to get a decision.
- If your application is successful you will need to sign a credit agreement. There’s no obligation to sign if you decide not to go ahead, and you have a 14-day cooling-off period if you change your mind after signing. Your card should arrive in the post within around 10 working days.
If your application is unsuccessful, don’t be tempted to try again right away because it can damage your credit score. Instead, check your credit report and see what you can do to improve your chances of being accepted in a few months time.
Best credit cards UK: Frequently asked questions
There’s no single credit card that’s best for everyone, instead, it depends on your personal circumstances, your credit score and how you plan to use your card. However, if the goal is to find the card that could save you money, this means taking time to compare APR, promotional offers, rewards and fees to find the ‘best’ card for your needs.
If you haven’t borrowed before, or have had problems with debt in the past, you may find it easiest to be accepted for a credit builder card. A range of UK providers offer this type of card which could help you to repair or build your credit score if you manage it well. Before you apply, check your credit score and use the provider’s eligibility checker to see if you’re likely to be approved. This reduces the chance of an unsuccessful application which could further damage your score.
If you’re a student, you may also be eligible for a student credit card.
If you’re not eligible for these cards, you could consider a prepaid credit card. There’s no debt involved with this type of card as you top them up with cash before you can spend, but this means you don’t need to pass a credit check in order to be approved.
In order to be eligible for a credit card in the UK you will need:
- To be aged 18 or over (some credit cards require you to be over 21).
- To be a UK resident.
- Have no County Court Judgements (CCJs), Individual Voluntary Agreements (IVAs) or bankruptcies.
- A minimum income. You may be eligible for a credit card if you have a low income or are unemployed, but you are likely to have a lower credit limit and higher APR.
When you apply for a credit card you need to provide some information so that the provider can run a credit check. This includes:
- Your contact details.
- Your address (including all addresses for the last three years).
- Your bank account details.
- Your income.
There’s no set limit on how many credit cards you can have. In fact, having more than one can be beneficial if you manage them well, and could even boost your credit score. For example, you could have one travel credit card to save money on fees and transactions when spending overseas, a rewards or cashback card where you can enjoy some extra perks when you spend, or a 0% purchase or balance transfer card to help you save money on interest.
However, it’s important to consider your financial situation before applying for a credit card as taking on more debt could mean you struggle to stay on top of your monthly payments – or find it harder to keep track and miss payments without realising. If you’re considering another credit card simply to access some extra funds, it may be wise to think again and consider seeking free debt help from charities such as:
Yes, it’s possible to apply for a credit card with a bad credit history, but taking on extra debt could make your financial situation worse. However, credit builder cards are designed for people with poor credit. These tend to be easier to get than other types of credit cards, but often have a lower credit limit and higher APR as a result.
In the UK, the average credit card limit is £3,000 – £4,000. However, the limit you are offered will depend on the provider, your credit history and income. While people with a low income, or those who are building – or rebuilding – their credit may have a low credit limit of around £200, high earners with an excellent credit score may be offered limits in excess of £10,000.
If you manage your card well, your provider may increase your credit limit over time. However you don’t have to accept an increase, and if you feel that your credit limit is too high you can ask your provider to reduce it at any time.
If you would like to increase your credit limit, you can ask your lender if this is possible. You stand a better chance of getting a higher limit if you have had the card for at least six months, and have managed it well during that time.
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