Best Credit Card for Purchases

MSE_Martin

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(note this link has been updated to a new article on 21 July 2004, some of the discussion below may relate to the old version)

sonsandbutler

What is the best credit card around?

I am looking for a card that offers a good cash back scheme, or a loyalty scheme.

how does Tesco's card compare to a normal 2% discount card?

I will be paying the balance off every month.

Any suggestions ???

System

If I wanted to "balance transfer" 3 credit cards totalling approx £4.5k (RBS/Mint, Tesco's & MBNA's Homebase) to only 1 (also have Alliance & Leicester with zero balance)with the aim of reducing my minimum monthly payment to the lowest out there, what card is the "cheapest" to go for? I'm thinking of putting it all on A & L's (after transferring Homebase to one of the others). Thanks for all your tips to date, they've been brill'. Rob.

Shelli_2

I have just recieved my first credit card, a Lloyds Advance card and am very confused after reading the article on 'best card for purchases'! It says:

"For anyone already with a Mint/RBS Advanta card, next best is the Lloyds TSB Asset (do you mean Advance Martin ???). Here new customers get 0% until 1 September 2004. After that its rises to 11.9%, but this card’s then one of a rare breed, spend on it and it’ll charge you interest even if you pay off in full, be very careful." - what does that mean, should I not use it?

Please clarify :-[

Thannks!

Galstonian

It depends, if you mean out of the cards you have then we can't say for sure what is in the terms and conditions for your cards, you need to check those for yourself.

Cheapest monthly minimum repayment is MBNA at £5 (not sure if this applies to Homebase too), I think most other cards minimum is a %age of the outstanding balance, usually between 2% and 5%.
Cheapest interest rate is obviously 0% introductory deals.

Best bet is probably to try and get an MBNA 0% deal and transfer everything on to that. There is a phone number and promotional code in another thread for 9 months int. free with them (and a pair of free watches too).

System

Thanks Mad Mav, any card would do thats 'out there' but I guess you're right in going for a 0% intro offer but I'm getting a bit wary of having too many cards and affecting my o/all credit rating. I'm just looking for 1 "final" card to get all my "debt" on and trying to find the best for min. monthly payment. Cheers.

Galstonian

You could always look at transferring everything onto your cheapest existing card and cancel all the rest before applying for your "one final card". It takes some time to cancel a card (up to 90 days) and then it has to get on your credit record - not quick. If cancelling a card make sure you terminate all accounts and ask to be removed from their customer database - some leave you as a customer with no active accounts so if you try to apply as a new customer in the future you cannot.

System

Thanks again Mad Mav. Excellent tip about getting details removed from card databases in case an opportunity arises to be a new customer in the future. Martin had better watch out!!

System

Just been reviewin' some previous threads and note a comment from someone re Alliance & Leicester credit card and that they've "seen the light" following comments from Martin. Can't trace Martin's comments so can someone out there elaborate pleeze. Looking to transfer balances on to my A & L card but might think differently if its gonna cause me grief. Thanking u.

System

Is it worth taking out a cheap loan (6.9%) to pay off a credit card (tesco) and personal loan (9.9%)? or is it worth just finding a lower interest rate on the card?

Galstonian

Depends on how much is owed on each and what rate the new card is.