Is your credit card sufficiently rewarding?

Just as there's usually no reason to stay loyal to any particular bank account or insurance company, the same rules apply to your credit card provider. Invariably, the best deals will only be available for those prepared to switch.

But with so many deals available, the choice can be confusing. So a good approach is to work out which type of card best suits your circumstances and then choose the best of the bunch in that particular category.

We're going to look at the best deals available on each of the main categories on offer: Best interest-free balance transfers; best cashback cards; best low rate cards; the best for interest-free credit on purchases and the best for lifetime balance transfers.

Best zero interest cards for balance transfers

If you've a stack of debt on your existing cards, the chances are you're paying a fortune in interest payments each month that will in itself stop you clearing your debts quickly.

It might be a surprise that another credit card can come to your rescue - but it can!

Forget about any other type of card if you are in this situation - what you need is to transfer all that debt onto a new card that won't charge you a penny in interest for up to 16 months. Hopefully that will give you enough time to pay off the debt altogether.

You will have to pay a fee of up to 3% of the debt you're transferring but that's probably small beer compared to the amount your paying on a typical bank card rate of about 18% APR - or even worse, the 25% rate you might be paying on some store cards!

The top three are:

Card	0% transfer period	Fee	Typical APR
Virgin Money Credit Card	16 months	2.98%	16.6%
Santander credit card	15 months	3.00%	15.9%
MBNA Platinum Visa	13 months	2.90%	15.9%

Best for cashback/rewards

Cashback cards are popular because for once, they really do give you something for nothing – provided you remember to pay off your balance in full each month. Each time you use your card, you are given some cash back. And with some outstanding offers available, you really can make hundreds of pounds each year.
Two cards really stand out in this category:

Amex Platinum Cashback: This has an introductory offer of 5% cashback on all your spending up to £2,000 during the first three months. Then it reverts to a standard rate of 0.5% cashback on the first £3,500 spent each year and 1% on spending from £3,501 to £7,500 a year. You do have to spend a minimum £3000 a year on this card though.

Egg Money World MasterCard: You get 1% cashback on all spending between £500 and £20,000 a year.

Barclaycard Goldfish credit card: This has a typical 9.9% APR – the lowest rate offered on any reward card and charges the same rate with no fee for balance transfers. It offers £30 worth of extra reward points if you spend at least £100 a month during the first three months. You also get an unlimited amount of reward points – 1 for every £1 spent. These can be redeemed for spending vouchers at 25 well-known brand names

Best for low rates:

If you need a credit card for the main reason they exist – to provide you with credit, then the obvious choice is to go for the card that charges you the lowest rate. If you can't pay off your balance in full, why opt for a typical interest rate of 18% when you can pay a rate as low as 6.7% thanks to the MBNA Platinum low rate Visa.
This rate applies on all your card purchases and balance transfers, In addition there is no fee on balance transfers made within 60 days of your account opening. A 2.9% fee applies thereafter.

Best for 0% on purchases
Whilst most normal credit cards will provide you with an interest-free period of between 45 and 59 days, this will only apply if you repay each monthly bill in full. Opt for a zero rate on purchases card, and you can get interest-free credit lasting up to a full year. To do this, you only have to pay the minimum monthly repayments during the 0% period, but make sure you pay off the remaining balance before your 0% deal ends.

The best include:

Card	Interest-free period	Typical APR
Tesco Clubcard MasterCard	0% for 12 months	16.9%
Sainsbury's MasterCard	0% for 10 months	15.9%
Marks & Spencer MasterCard	0% for 10 months	15.9%
Saga Over 50s Platinum Visa	0% for 9 months	11.9%

Best for lifetime balance transfers

These cards are for you if you can't be bothered to switch your balance between 0% transfer cards every 12 to 15 months or so. As with 0% transfers, lifetime transfers sometimes come with fees attached. They also charge interest at rates upwards of 6.7% APR. So it really does make sense to keep switching to zero-interest cards. That said, if you can't be bothered, there's one card that stands out in this category - the MBNA Platinum Low Rate Visa. It charges just 6.7% APR on balance transfers until they are repaid and there are no fees on balance transfers either. Watch out though – as the rate is variable, it could go up.

If you're not happy with this variable rate, then the Barclaycard Platinum Simplicity Visa card is the best bet. It charges just 0.1% more than MBNA's card but this rate is fixed for the lifetime of your balance transfer.

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