Which credit card?

[Chris71]

Hi,

I've never really used credit facilities much and it turns out that last year my old Egg Card was actually cancelled due to lack of use! Now it looks like that might and I could need one pretty shortly. So, any suggestions on the best one to go for?

It needs to be widely accepted (nothing obscure) and secure, and preferably simple to administer online. I wouldn't need a particularly huge credit limit (sub £10,000).

Any suggestions?

Chris

[J500ANT]

www.moneysavingexpert.com would probably be a better place to ask. I've got a Tesco Clubcard credit card, which is RBS. Seems ok, 0% on purchases and Clubcard points too

[Anthony Micallef]

Or you can also have a look here http://www.thisismoney.co.uk/

[anonymous-user]

your own bank's standard visa / mastercard would do

[10AE]

Any would 'do', but you might as well get one that works for you.

I have a few, but currently use my Egg World card. 1% cash back on everything. I put about £1.5k through it a month which adds up to £180/year cash back. Not a great amount granted, but enough to make it worthwhile using that card than my bank's own Visa.

ETA: I am assuming of course you intend to pay off in full every month. If this is not the case other cards with a low % of interest-free periods would be better.

[cuprabob]

10AE said:

Any would 'do', but you might as well get one that works for you.

I have a few, but currently use my Egg World card. 1% cash back on everything. I put about £1.5k through it a month which adds up to £180/year cash back. Not a great amount granted, but enough to make it worthwhile using that card than my bank's own Visa.

ETA: I am assuming of course you intend to pay off in full every month. If this is not the case other cards with a low % of interest-free periods would be better.

I too use Egg Money for the cashback but I'm not sure if new applicants need to pay an annual fee of £12 which means you need to spend £100 / month to break even and thus benefit from cashback

[10AE]

cuprabob said:

I too use Egg Money for the cashback but I'm not sure if new applicants need to pay an annual fee of £12 which means you need to spend £100 / month to break even and thus benefit from cashback

Ah - good point. I didn't realise they had started charging a fee as I've had mine since they first came out (2002?). Mind you, £1/month to get 1% on cashback is pretty good still.

[sploosh]

tesco creditcard is good. 13 month interest free on purchases + points.

The wife and I tend to swap interest free cards every year....... not paid any interest yet (since 2002)

We use the tesco points for days out so works well for us and is worth more than cashback.

If they're daft enough to come up with these offers we'd be daft not to take advantage

[sinizter]

Egg World (1% cashback) or American Express Platinum Cashback (upto 1.25% cashback). Amex not as widely accepted.

The above are the best cashback cards, but if you just want an interest free purchase or transfer period, other cards might suit.

[cuprabob]

10AE said:

Ah - good point. I didn't realise they had started charging a fee as I've had mine since they first came out (2002?). Mind you, £1/month to get 1% on cashback is pretty good still.

I've had it from the start as well so don't pay the fee either. It was great when it first come out as the interest rate was really low. Now I just use it or convenience and the cashback

[10AE]

sploosh said:

We use the tesco points for days out so works well for us and is worth more than cashback.

Not true. I too have a Clubcard credit card and you get 1 point for every £4 spent (more in Tesco although less than it used to be).

This works out at 0.25% cashback.

You can exchange these for vouchers worth up to 3x the points value, again, used to be 4x. This makes it 0.75% cashback but with the downside you are required to spend your points on a limited range of suppliers/businesses that Tesco stipulate.

The advantage with the straight cashback cards; such as Egg World or Amex is that you get a higher rate of cash back credited to your account yearly and you can then spend it as you please, without being limited to certain offers or having to "exchange" points for vouchers.

[Chris71]

Is there any action required in this points exchange business?

To be honest I'm not proactive enough to log on and convert them from points to Clubcard points every month; they'd probably just end up going to waste if it doesn't happen automatically!

[10AE]

Chris71 said:

Is there any action required in this points exchange business?

To be honest I'm not proactive enough to log on and convert them from points to Clubcard points every month; they'd probably just end up going to waste if it doesn't happen automatically!

#

Yes, if you stick with Tesco you have to log on and exchange your points for vouchers which then arrive in the post.

A straight cashback card is much easier, just use it and once a year a credit of 1% of your spend will appear on your March statement.

[14-7]

I have used Capital One for some time now and get 1% cashback. Doesn't sound like a lot and it isn't but spending about £15k a year on it obviously means they pay me £150 a year for using it. I always clear the monthly balance so happy days.