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Credit Card Companies

Many credit card companies are still offering attractive 0% interest on balance transfers and are aggressively competing against one another on balance transfer fees; targeting individuals who are looking to reduce their monthly credit card interest charges and have a good credit rating.

A range of enticing interest free credit cards are still available with some of the best offering a low APR of 15.9% on new purchases and up to 56 days of interest free credit.

It is common for credit card providers to offer an introductory period of zero interest on purchases made, with the best deals being 0% for the first 3 to 6 months. In addition, some banks and finance companies offer an instant decision with a convenient online credit card application process which includes a credit history check to identify individuals which represent a bad credit risk.

When we compare credit cards many factors have to be taken into account such as whether the card will be paid off in full each month. Giving consideration to this, some of the best credit card deals are shown below in our comparison table. Card transfer fees, charges and applicable interest rates are all subject to change - so check with the credit card company prior to making an application:

Top Interest Free Credit Cards

There are many comparison sites out there so if you are looking for 0% credit cards by far the best are Money Supermarket which regularly publishes the top interest free credit cards and Money Saving Expert regularly publishes deals on 0% cards.

Credit Cards with Air Miles

If you do not need to borrow, credit cards have other advantages if you pay off the whole debt by direct debit each month to ensure you do not incur charges or interest.

If you travel a lot then an Air Miles reward credit card would be worth considering where for each pound spent you are rewarded with air miles which you can redeem on flights, holidays, hotels, car parking and car hire.

Use the credit card regularly for all your bills such as food as well as paying for the luxuries such as holidays and accommodation (although not whilst abroad as they are likely to load the exchange rates, charge commission - visit www.moneysavingexpert.com/travel/cheap-travel-money for advice on travel expenditure and money) and the Air Miles you can redeem will soon mount up!

Cash Back Credit Cards

Another option is a cashback credit card where companies offer rewards, cash and incentives. The reward benefits may be offset by the annual fees some of the providers charge, so do your research.

As mentioned before, for these credit cards to have any benefit, the major caveat is that you must pay off the full balance each month by direct debt. If this is not mentioned on the direct debit form (a lot of providers will omit this, as they are trying to encourage you to pay off less which earns them interest) write in "pay off in full" on the form and they will honour it. In any case it is always worth telephoning them to ensure that the direct debit has been set up correctly as requested.

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