UK credit card deals

The UK credit card market is crowded and complicated, making it difficult to choose a card from the hundreds available. uSwitch.com can help you find a better credit card deal, with our free and impartial comparison service.

In the UK, we are increasingly reliant on our credit cards. The value of transactions made on UK credit cards grew at an average rate of 13.2% every year from 2000 to 2004, according to Datamonitor, an information company that provides industry analysis for financial services.

It seems a lot of us now choose to make our purchases with plastic. With our increased credit card spending, it is becoming even more important to get a good deal.

Many people are switching their credit card balances and reaping the rewards of a better deal.

Transferring your balance can be an effective way to reduce your charges. The best credit card deal for you would have a 0% balance transfer rate and a low interest rate.

There are many different credit cards to choose from that offer an introductory 0% interest rate. Some may have interest free periods as long as 12 months.

Unless, after you make purchases, you pay the balance off in full before the interest due date, you will get a better deal by having a low standard interest rate.

There is a large discrepancy in interest rates between cards. This means that comparing cards before you commit to one can save you a significant amount in interest payments.

Credit card companies offer interest free periods from the date you make a purchase, so you won’t be charged interest until, say, a month (or two) after you shop. So, if you always pay your balance before the end of the interest free period, the standard interest rate really doesn’t matter.

Some credit card companies offer cashback. This means for every pound you spend on your card, you get a small percentage back. The rate can also depend on the amount of money you spend – for instance, 2% cashback for purchases up to £2,000 and then a 1% rate for purchases above this figure.

Your comparison results will highlight the cashback you will earn based on how you use your card.

Some credit cards are linked to loyalty schemes, so you might get AirMiles or Nectar points when you make purchases. Note though that the point value per pound spent differs for each provider. You may also find a deal with other benefits, like free travel insurance or medical help.