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You Are Here: Home > Personal Finance > Credit Cards > Choosing the right Credit Card
How to chose the right Credit Card
Want a great Credit Card? Find out why these 4 Cards are probably the best on the market. So much so we use 3 of them ourselves. More information.
Not all Credit Cards are the same and of course everyone's spending habits are different as well. So the card that suits one person might not be the best one for another, and vice versa.

To choose the correct Credit Card you have to work out how you're going to be using it.

If always paying off the monthly balance in full
  • You want a Credit Card that doesn't charge an annual fee
  • Most don't but there is a now a trend where providers are starting to levy charges of usually around £12 - £30
  • You also want a card with the longest interest rate grace period, ie the one that offers you the most time to pay, around 4-5 weeks

The interest rate is not applicable so it does not matter if the card charges 29.9% or even 50% as you will not be borrowing any money.

This is an important point to note, ie don't be scared of high APRs as you're not going to be paying them (assuming the card balance is paid off every month)

However you can never know what the future might hold so still try to get the lowest rate of interest in case you can't always settle the bill that month. See Secret 3 - Buy simple and flexible - you can't read the future - which is one of this site's 10 Secrets to Good Personal Finance.

See also

If the balance is not always paid off every month
By far the most important factor is the interest rate, referred to as the APR, see What is Credit Card APR for more information.

Always go for the lowest even if the card charges a high annual fee as the fee will be cheap in comparison to the amount of interest charged every month.

For those with bad credit
The good news is there are specialist Cards that are specifically designed for people with bad credit ratings. One such card is the Vanquis Card (see the box below).
  • The credit limits are low on these specialist credit cards, usually between £200 and £750
  • No annual fee usually charged
  • But the interest rate is often higher than a standard Credit Cards often 30% or more
  • As an added bonus these cards can help repair your credit rating, assuming you don't have any defaults or CCJs - Read this FAQ for more details
These cards can also be used to help build a credit rating if you don't have one. Often elderly people might struggle to get credit because they haven't borrowed much money in the past, and these cards solve this problem.

Capital One Classic Card

Similar guidelines to the Vanquis card -

  • You're able to verify your address (e.g. bank statements, utility bills, landline)
  • You haven't been declared bankrupt in the last 12 months
  • You're registered on the electoral role - See how to get on the electoral roll
  • You have some history of managing your credit even if you have had CCJs and/or defaults in the past

If you fulfill the above then you should have no problems in qualifying for the card.

Vanquis Credit Card

Although it's normally very easy for people to qualify there are a few restrictions -

  • You haven't applied for a Vanquis card in the last 6 months
  • You're able to verify your address (e.g. bank statements, utility bills, landline)
  • You're not in the midst of declaring bankruptcy
  • You're registered on the electoral role - See how to get on the electoral roll
  • You're 18+
  • If you fulfill the above then you should have no problems in qualifying for the card.

See also

FREE Report

How to Audit your Credit File

With errors your rating will suffer
How a clean credit rating can save you money
4 steps to a clean up any mistakes
Don't discount the importance of your credit file
It's absolutely critical.....
Get the FREE report
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