As July gets ever closer, we may like to dream wistfully of beaches, fish and chips and ice cream, but the most important thing to look forward to is being free of debt. And by making a smart credit card choice, you can do just that.
The best cards if you’ve got big spending coming up
Perhaps you have a wedding or baby on the way. Or perhaps you are taking advantage of the let up in the rain to do some home improvements. Undoubtedly the best way for pay for such expenses is to make use of you savings. However, if that’s not an option, then a 0% on purchases credit card is your next best bet.
The top cards in this category offer more than a year of interest-free credit, allowing you a fair bit of time to pay off your debt in manageable chunks.
The best cards if you already have credit card debt
For many of us, the interest charged on our credit card debt is already hurting. According to Credit Action, the average borrower owed £4,219 in April on a combination of credit cards, motor and retail finance, overdrafts and unsecured loans. So if you’ve got a chunk of debt already on a credit card, a quick and (relatively) cheap way to pay it off is to make use of a credit card charging 0% interest on balance transfers.
Much like 0% purchase cards, a 0% on balance transfers card allows you to pay off your debt in bits, free from the worry of interest adding to your debt. You will have to pay a fee to move that debt over on to the balance transfer card though.
The best cards if you pay your bill off in full each month, your best option is probably a cashback credit card. You’ll earn back a percentage of your spending in cold, hard cash to do with as you please! There are three main cards to consider. Both the American Express Platinum Cashback card and the Capital One Aspire cards offer 5% cashback in the first three months. After that the American Express offers a flat rate of 1.25%, while the Capital One offers tiered rates of up to 1.25%, depending on how much you spend.
The other cashback card worth a look is the Santander 123 Credit Card which offers different rates of cashback depending on where you spend your money.
Alternatively, you may want to go for a card that offers reward points towards something. One option is the Tesco Clubcard Credit Card which enables you to collect more Clubcard points.
Source: www.mirror.co.uk
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