If you're paying interest on your current credit card balance, you may want to consider a new card with a great deal. 0% interest transfers enable you to move the balance from one credit card to the next without paying any interest for periods of up to 15 months.
Top tips
* Read the small print - great deals often come with balance transfer fees of 3% or more, and the interest rates charged once the 0% offer period has ended, can be quite high.
* Try to ensure you can pay off the balance by the time the 0% deal has ended.
* Don't add to the outstanding debt by using them for new purchases. Most credit card companies will use your monthly repayments to pay the debt on which you're paying the lowest interest rate first.
Low purchase rates
Some credit cards offer introductory deals of 0% interest on new purchases for up to 10 months. If you're looking to make a large purchase, this could be the credit card you need.
Top tip
* Work out how much you'll need to pay every month in order to clear the balance by the end of the offer period - and stick to it. If you can't manage it, you might want to look into taking out a loan.
Cash-back cards
Rewards are always good, and some credit cards will give their customers cash for purchases they make using their card. The best deals in this area give you 5% cash back for spending up to a certain limit for the first three months. After that, you'll receive between 0.5% and 1.5% back, depending on the total value of transactions you make.
Other cards typically offer around 0.5% cash-back. You can rack up tidy sums on these cards by using them for your regular monthly outgoings, such as the supermarket shopping.
And if you're feeling generous, there are credit cards which work in a similar way, but instead of you getting the money, a charity, such as the NSPCC, Cancer Research, or the RSPB receives a donation. Organisations typically get 0.25p for every £1 you spend, as well as a one-off donation, often of around £20, when the card is first taken out.
Top tip
* Always try to pay off your balance in full. With interest rates of 17.9% or more, the benefits of these cards could be instantly wiped out if you don't pay the debt each month.
Other rewards
Free airline tickets, airmiles and the accumulation of reward points that can be redeemed against shopping vouchers and money-off days, are just some of the other rewards offered by credit cards.
The value of rewards ranges hugely and can be low, so check if you receive more points by shopping at certain retailers. If so, they're the shops to flash your plastic in.
Top Tip
* Again, interest rates can be high, so reward cards are great if you can clear your balance in full each month. If not, you may be better off opting for a low interest rate card.
Travelling abroad
These are a dying breed, but there are still some credit cards out there that you can use abroad without incurring hefty charges - and that's the one you want for your travels.
Credit card providers typically charge commission of 2.75% on each foreign transaction made, which can add up to a significant sum over the course of a holiday.
Top tip
* Be warned, cards that offer free overseas transactions don't always offer the most competitive interest rates, so be sure to clear the balance when you come home.
Cards for cash
If it's hard cash you're after, you'll pay a hefty sum if you use a credit card for withdrawals and may well be better off taking out a lower interest loan or using your overdraft (especially if you have a free overdraft facility).
Some credit cards, however, do allow you to charge up your account with money that you can then withdraw without having to pay interest at the cash advance rate. You may even receive interest on your in-credit balance.
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