Whether you're looking for a top 0% balance transfer deal, a lifetime debt-busting solution or a 0% loan, these credit cards can help you knock your finances into shape.
The credit card market is a big, big place. It's flooded with hundreds of different bits of plastic; and almost every provider claims to have a 'market leading' product.
In fact, there's a lot of dross out there, and many mediocre cards that won't do your wallet any good at all.
Here, I'm going to cut through the marketing bunkum and highlight some of the best credit cards for getting your finances in order. Whether you're looking for a top 0% transfer deal, a lifetime debt-busting solution or a 0% loan - you should find what you're after.
Just remember that to make these cards work for you, you need to play the providers at their own game!
Best for 0% balance transfers
If you're paying interest on existing credit card debt, it makes sense to shift that debt onto a card offering 0% interest on balance transfers.
The longest 0% balance transfer deal available - lasting a whopping 16 months - comes with the Virgin Money credit card.
I've used this card myself, and do think it deserves the title 'best buy' - as long as you remember the following things:
- You will have to pay a 2.98% balance transfer fee.
- You can't get the deal if you have another card from the MBNA 'stable'.
- You'll need a very good credit rating for your application to be accepted.
- You need to make absolutely sure you read the small print, make all payments on time and CLEAR YOUR BALANCE before the 0% deal ends. Debt remaining on the card after this time is likely to be charged a very hefty rate of interest.
Alternatives
Already have an MBNA card? Read 13 very long interest-free credit cards to find out about the alternatives.
Best for long-term balance transfers
If you think you're going to need longer than 16 months to clear your credit card debt, consider shifting it onto a card that offers a low rate of interest for as long as it takes to clear your balance.
This sort of card is generally known as a lifetime/long-term balance transfer card.
The cheapest lifetime balance transfer deal around at the moment comes with the MBNA Platinum Low Rate American Express card.
It offers a low rate of 6.7% on all card purchases and balance transfers. It also promises there will be no transfer fee if you shift your debt across to it in the first 60 days (after that, there will be a 3% fee).
This is a very good deal, as long as you take the following points into account:
- MBNA bills this as a 'limited offer', applying to the first 1,000 customers who respond and are approved for the card.
- The 6.7% rate is variable, so theoretically, it could rise at any time.
- You can't get the deal if you have another card from the MBNA 'stable'.
- You'll need a very good credit rating for your application to be accepted.
Alternatives
The best alternative on offer is the Barclaycard Platinum Simplicity Visa card. This offers 7.8% (variable) on both balance transfers and purchase debt, with no balance transfer fee.
Best for 0% spending
In a perfect world, no one would spend money they didn't have. However, if you don't have any savings - but you really do need to make a purchase - the right credit card could act as an interest-free loan.
For example, let's say you need to pay your car insurance premium. Paying in monthly instalments will probably mean your insurer charges you a hefty rate of interest.
So instead, think about taking out a credit card which offers 0% on new spending. Use it to pay the full yearly amount upfront, then make sure you clear the balance before the 0% period ends.
My favourite 0% purchase card is the Tesco Clubcard credit card. It offers 0% on purchases for a full 12 months, making it the longest 0% purchase deal around.
As always, you just need to remember certain things:
- You'll need a good credit rating to be accepted for this card.
- You need to make sure you clear your balance before the 0% deal ends: After that, the typical APR rises to 16.9%.
- You will also earn one Tesco Clubcard point for every £4 you spend.
- You can't get the deal if you already have a Tesco credit card.
Alternatives
One of the best alternatives on offer is the Sainsbury's MasterCard: This offers 0% on new spending for 10 months (12 months on Sainsbury's shopping) and you'll also get two Nectar points for every £1 you spend at Sainsbury's (using the card) in the first two years.
The Sainsbury's card also offers you a 10 month 0% deal on balance transfers (with a 3% balance transfer fee), which means it's a decent 'all round' card, too.
Compare credit cards at lovemoney.com
Get help from lovemoney.com
If you need help tackling credit card debt, you've come to the right place.
First, adopt this goal: Pay off credit card debts
Next, watch this video: How to deal with debt disaster
And finally, why not have a wander over to Q&A and ask other lovemoney.com members for hints and tips about what worked best for them?
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