We make comparing credit cards super simple
There are so many varieties of credit card it can be hard to know which is best for you.
Fortunately, we can help you compare the different types to help you find one that suits your needs.
How do credit cards work?
Every credit card has an interest rate attached to it which is the percentage you'll be charged on top of the amount you already owe.
The interest rate your provider charges you will largely depend on your credit rating, as well as the provider’s own criteria.
This means that those with better credit ratings will likely get better interest rates.
The Annual Percentage Rate (APR) is a compound interest rate used to express the interest charged for borrowing money over the course of a year.
Let’s say your card has a 12% APR and you spend £1000 on your credit card over the course of the year. If you do not pay it back, you’ll be charged £120 on top of the £1000 you already owe.
Be careful though. The ‘representative APR’ is often different to the actual APR you might be charged.
Providers are required to give their representative APR to at least 51% of customers. This means up to 49% of their customers may be paying more interest than the advertised amount.
Compare credit cards
So which credit card could be right for you?
- Purchase credit cards - useful for spreading the cost of your shopping and can often come with enticing introductory offers
- Business credit cards - allow you to pay for expenses which your employer can reimburse
- Reward credit cards - give you rewards as you spend e.g. loyalty points or air miles
- Cashback credit cards - give you cash back as you spend, up to 5% in some cases
- Student credit cards - may come with rewards for students
Are there credit cards for bad credit?
If you already have a large debt, you may feel like a credit card isn’t an option.
There are, however, credit cards for those with bad credit scores.
These cards will usually have a high interest rate attached to them so it may be worth looking into different ways to pay off your existing debt.
How do credit card applications affect your credit rating?
In simple terms, your credit rating is a way of showing how risky it would be to lend to you. The better your rating, the more likely you are to be accepted for credit of all different types, from credit cards to mortgages and so on.
If you have a bad rating, you may well be rejected if you apply for a credit card.
Because a rejected credit card application can unfortunately leave its mark on your credit rating, it’s worth doing a smart search instead, which won't leave a trace on your record.
What are the best credit cards?
That’s ultimately down to you and your circumstances. Consider carefully what you need the card for, and then consider any fees, interest rates, and the representative APR.
Keep an eye on any introductory period your card may have.
Would you like to know more?
Still getting to grips with credit cards? We have a plethora of guides on everything from charity cards to protection insurance, as well as store cards, low APR cards, air miles and lifetime balance transfers.