Credit Cards

Credit Cards

I believe credit cards should be renamed debt cards because that’s what most people have, debt!  Beware if you use a credit card, you repay the balance in full before the due date, my preference is that you do not use credit cards, but for some online or international purchases, the Section 75 protection can be helpful.

Applying for a credit card can affect your credit score, and you may not be accepted for some, so it’s always best to check your credit report before applying for a credit card.

I have broken the options into three;

0% Balance Transfer Credit Cards | Low Interest Credit Cards | Credit Repair Credit Cards

 

0% Balance Transfer Credit Cards

0% Balance transfer credit cards allow you to transfer your existing credit card balance to the new credit card company. They often come with a 0% interest offer for a specific time period, allowing you to pay off your credit card debt within a specified time period without being charged interest. However, watch out for the initial fee which you may pay, consider this as an interest charge over the 0% rate period and most importantly do not make any purchases on this card, this is not normally interest-free.

Balance Transfer FeeAdditional Information
MBNA Platinum Visa2.49%0% on balance transfers for 36 months
No balance transfers from MBNA cards
Contactless payments up to £30
Halifax Mastercard2.68%0% on balance transfers for 36 months
Rates dependent on credit rating
You may be offered alternative terms
Tesco Bank Mastercard2.69%0.0% for 36 months from date of card issue.
Earn Tesco Clubcard points for spending on your card
No fees on Tesco travel money

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Low Interest Credit Cards

Low APR cards can sometimes represent a better deal than credit cards offering 0% deals on purchases and balance transfers because as the cheap rate can be guaranteed until you’ve repaid the debt in full. The cards below are ordered by interest rate (APR).

APRAdditional Information
Tesco Bank Low APR Mastercard5.9%51 days interest free
Earn Tesco Clubcard points for spending on your card
Rates dependent on credit rating
No fees on Tesco travel money
Bank of Scotland Plantinum Low Rate Mastercard6.4%56 days interest free
Emergency card replacement
£5 charge if you need to change payment due date
Manage your card online
Lloyds Bank Platinum Low Rate Mastercard6.4%56 days interest free
24 hour customer service
Rates dependent on credit rating
Manage your card online

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Credit Repair Credit Cards

If you need to improve your credit rating, maybe to help you get a better mortgage deal, credit repair cards can be an effective way to get you back on track. Typically these credit cards are easier to be accepted when you apply, even if you have a bad credit rating.  The downside is that the APR they charge is substantially higher, so you must, without any exception, repay the balance in full each month.

APRAdditional Information
Barclaycard Platinum24.9%27.90% Cash Withdrawal Rate
0% on balance transfers for 18 months
Can’t change payment due date
Contactless payments up to £30
Tesco Foundation Mastercard27.5%39.94% Cash Withdrawal Rate
Earn Tesco Clubcard points for spending on your card
Rates dependent on credit rating
Available to help rebuild your credit
Aquis Visa29.5%39.50% Cash Withdrawal Rate
Can help improve your credit rating
High rate for cash withdrawals
£1,000 max limit on opening (may be increased later)

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