What's New In Credit Cards


It's about time we updated you on the best credit cards around. As you all know very well, you can get cheap credit by using 0% cards.


After the initial purchase or balance transfer fee, you pay no interest for a specified period. That is, you're supposed to pay no interest, although my current card provider randomly charges me about 15 pence each month. Still, even with a bizarre clerical error like this, it's a cheap way to fund a debt.


So what are some the best deals on offer at the moment? Marks & Spencer have a card called '&More'. Despite the name, it's one of the more attractive offerings, as it's a 0% balance transfer card with no transfer fee. An interest-free period limited to just six months is the least attractive feature in an otherwise great card.


A lower maintenance card would be Halifax One, which has a 0% balance transfer deal for 12 months. But, as is usually the case, free money costs you: there's a standard 2% transfer fee.


If you're looking for a card to buy expensive things with, the Sainsbury's Bank card is still the best, offering 10 to 12 months interest free on purchases (but not balance transfers). As is standard for purchases, you pay no fee. Only one or two of the other forty or so 0% purchase cards offer 9 months or more. The average is 6 months.

Follow up:

For smaller purchases, cashback cards such as the Morgan Stanley Platinum or Standard Cashback cards are suitable. These two offer 2% cashback for four months and then 'up to 1%'. There's also a host of reward cards that you might like, such as the American Express Nectar credit card or the Co-operative Bank Travel credit card, which you can compare here.


Finally, there are cards which have balance transfers that are fixed for the life of the transfer. American Express has a range of cards offering 4.9% for the life of any balance transfers made in the first six months. Sainsbury's Bank, again, also has a good rate of 5.94% on transfers within six months.


Whatever you want a credit card for, remember to get the right one for your intended purpose. If it's designed to be used as a balance transfer card, don't use it for purchases as well. If it's designed to give you cash back, don't use it for balance transfers, and so on. Otherwise, it'll probably prove more costly than you intended. Learn more about how to best use credit cards here.


Source: Neil Faulkner from 'The Motley Fool'