Best Credit Cards in the U.K

When used wisely, a credit card can be a simple and adaptable tool to borrow money and control your spending. However, there isn’t a one-size-fits-all solution. Many different credit card options are available, and selecting the right one for your needs can significantly impact your money and experience. So, where do you begin?

Here are some factors you should consider when looking for the best credit card in the U.K:

• Annual fees: some cards come with a yearly fee, while others don’t. You’ll need to decide if the benefits of having a card outweigh the cost of the fee.
• Interest rates: the interest rate you’ll be charged on your credit card will affect how much you pay in the long run. Get a card with a low-interest rate to save money.
• Rewards: Many credit cards offer rewards, such as cashback or points, for discounts or vouchers. If you’re planning to use your card for everyday spending, look for a card that offers rewards that will suit your needs.
• Minimum spend: some cards require a minimum spend to earn rewards, so be sure to check this before signing up for a card.

Choosing the best credit card in the U.K can be a daunting task; that’s why we’ve done some research and put together a list of the best credit cards in the U.K to help you make an informed decision.

The Top 9 Credit Cards in the U.K

Remember, these cards represent the “best-case scenario.”You can receive less favorable conditions, depending on your circumstances.

1.  American Express Credit Card ( Best Cashback Card)

Depending on your spending, the American Express credit card offers unlimited 0.5 percent or 1 percent cashback on all purchases. If you spend between £1 and £10,000 in the first three months, the card gets a 0.5 percent reward; if you spend more than £10,000 in the first three months, the card earns 1 percent cashback. Since there is no yearly fee, it is the best cashback payer.

If you apply for the card to make a large purchase, the 5 percent cashback welcome incentive for new clients in the first three months on up to the first £2,000 in spending may be enticing.

Each year, the cash back you earn will be sent to your card account. To get the most out of this card, which has a typical APR of 25.3 percent (variable), you must pay off your monthly balance.

The card has standard Amex perks like discounts at a few retailers and the Global Assist service for international travel. You also get two private club memberships: LoungeKey and WeWork, which offer access to more than 850 lounges worldwide and business facilities in more than 400 cities.

To get this card, you must have a good to excellent credit score (720 or higher).

2.  Barclaycard Credit Card (Best Travel and Reward Card)

This Barclaycard offers up to five percent cash back on spending in the first three months, up to a maximum of £100. After that, you’ll earn 0.25 percent on all purchases.

You can also take advantage of Barclaycard’s “Payment holidays,” which let you skip a month’s worth of payments once every 18 months.

However, you may only use this card for free if you pay off your entire balance each month. Any outstanding balances will be subject to a 22.9 percent APR (variable).

Strict eligibility requirements are part of the arrangement. As an illustration, you must be at least 21 years old, have four years of credit management expertise, and earn more than £21,000 per year to be eligible.

3.  Sainsbury’s Bank Nectar Credit Card (Best Purchase Credit Card)

Are you a regular shopper? You can earn up to 3 points with this card for every £1 spent at any of these retailers. In addition, you can make one Nectar point for every £5 spent elsewhere.

To qualify, you must have owned a Nectar card for at least six months, and you must swipe the card each time you use your Nectar Credit Card to earn points. The value of one Nectar point is 0.5 pence.

Once you earn your Nectar points, you can use them at Sainsbury’s, Vue Cinemas, Argos, or online at nectar.com for travel, lodging, and activities. You can also redeem your points at select retailers, including Amazon, iTunes, and Starbucks.

This card has a typical APR of 18.95 percent (variable) and an annual fee of £25.

4.  Virgin Money Credit Card (Best for Transfers)

The Virgin Money credit card offers 0 percent interest on balance transfers for up to 30 months and 0 percent on purchases for up to three months. After that, the APR is 19.74 percent (variable).

You must transfer your balance within 90 days of opening the account to take advantage of the 0 percent APR offer. A balance transfer fee of three percent applies.

This Virgin Money credit card also offers a rewards program, which lets you earn one point for every £0.25 spent on the card. You can redeem your points for Virgin Atlantic Flying Club miles, Virgin Experience Days, or cashback.

To be eligible for this card, you must have a good to excellent credit score (720 or higher). You also must be a resident of the United Kingdom.

5.  HSBC Mastercard Credit Card ( Best for Rewards)

The HSBC Cash Rewards Mastercard credit card offers 0 percent APR on purchases and balance transfers for the first 18 months. After that, the APR is 21.24 percent (variable).

This card also offers a rewards program, letting you earn two percent cash back on the first $0.25 spent in the first three months and one percent after that. You can earn unlimited two percent cash back at grocery stores and gas stations.

Cardholders can benefit from special offers through HSBC home&away, a program of ongoing discounts on vehicle rentals, dining out, hotel stays, and entertainment.

You cannot transfer a balance currently held on a card issued by HSBC, First Direct, John Lewis, or M&S Bank.

6.  Santander Everyday Credit Card (Best for No Balance Transfer Fees)

The Santander Everyday Credit Card does not impose balance transfer fees or interest for the first 21 months after the transfer. Thus, it won’t cost you a dime if you can pay off your loan during this period.

The first three months of transactions made with the card are interest-free from when the account is opened.

It’s open to all candidates, and if you’re accepted, you’ll get the specified 0% duration and terms.

Additionally, you will have access to Retailer Offers, which enables you to receive up to 15% cashback when using the card at different merchants when enabled in online or mobile banking.

After 21 months, interest is assessed at 20.9 percent APR (variable).

7.  Halifax Clarity ( Best for Travel)

When you use the Halifax Clarity card to make purchases or withdraw cash abroad, there are no costs involved.

But you may only use it for free if you ultimately pay off your balance. If a balance gets carried over from one month to the next, the indicative annual percentage rate (APR) is 19.9 percent (variable).

If you use the card to make a local currency withdrawal, you will immediately be charged interest on that sum at the same 19.9 percent APR (variable) or higher if you choose to make a sterling withdrawal.

8.  Tesco Foundation Credit Card (Best Builder Card)

With a typical APR of 27.5 percent, Tesco’s Foundation Credit Card offers one of the lowest quoted APRs among credit builder offerings (variable).

However, you should utilize credit builder cards to know that your debt is paid off each month.

Effective management will eventually repair damage brought on by defaults, CCJs, and bankruptcies.

If you haven’t had an account terminated due to defaults in the last 12 months or CCJs in the previous 18 months, you have a better chance of getting the card. The card’s initial credit limit ranges from £200 to £1,500.

In addition to improving your credit score, you may also build your Clubcard points balance by making purchases at Tesco supermarkets or gas stations, where you can get five points for every £4 spent. 

9.  TSB Advance Mastercard (Best Low APR Credit Card)

The Advance Mastercard from TSB offers a fantastic low, ongoing representative APR of 9.9 percent if you are eligible for the “headline rate” (variable). Although a higher typical rate of either 13.95 percent or 16.95 percent APR will be provided to some applicants (variable).

Additionally, there is no interest in balance transfers for the first three months. After that, depending on your circumstances, you will return to the purchase rate of 9.9 percent, 13.95 percent, or 16.95 percent (variable).

If you transfer a balance from another credit card during the three-month introductory offer period, there is no balance transfer fee; however, after the fourth month, there is a 3 percent cost.

Conclusion

Picking the best credit card for you comes down to understanding your financial needs and habits. If you carry a balance on your credit card monthly, you will want to find a card with a low APR. If you travel frequently, you will want to find a card that doesn’t charge foreign transaction fees. By understanding your spending habits and needs, you can narrow down the best credit card options.