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By Claire Stevenson
Staff Writer
23 February 2009
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Looking for a credit card deal to suit your financial situation but are confused about what's still out there and whether the credit card firms are still lending? Then look no further than these five credit-crunching gems.
Each one is ideal for a particular financial purpose and if used sensibly can help you gain something in return.
1. Best for balance transfers - If you've stalled on that New Year's resolution to swap your balance transfer to another credit card, or you're looking for a long-term deal on balance transfers, look no further than the Virgin credit card.
It offers a very generous rate of 0% over 16 months, so it's an ideal choice for people looking to switch balances between credit cards.
Act quickly though as some credit card providers have been withdrawing their 0% balance transfer deals from the market.
Virgin is sitting pretty at the top of the credit card pile on this particular type of deal as it allows you to transfer money into current accounts – a bonus if you want to pay off an overdraft on your current account or switch funds around.
What to watch out for: the card carries a typical APR of 16.6% (remember don't spend while you have a 0% balance transfer and make sure it's repaid before the end of the 0% period). There's also a 2.98% balance transfer fee to pay and you must make all transfers within 60 days of account opening to qualify.
2. Best for cash back - Earn while you spend with the American Express Platinum credit card, which offers a whopping 5% introductory rate for the first three months you hold your account.
If you're a savvy credit card holder, you'll pay off your balance in full every month. This way you can earn cash back and not get stung by the ouchsome 18.9% interest rate on unpaid balances.
3. Best for Airmiles and travel rewards - Although holidaying abroad may seem like a pointless dream at the moment, the sterling's slump against the euro doesn't put Europe out of reach just yet.
Bag yourself a Lloyds TSB Air Miles Duo credit card and rack up points towards the 2009 holiday you've thought twice about taking.
The account offers two cards - American Express, which gives you 1 Airmile for every £10 you spend - or Mastercard, which offers 1 Airmile when you spend £50.
Get one before 31 March and receive 1,500 bonus Airmiles when you spend £10 before 30 June 2009. That's enough Airmiles for 2 free flights to Paris or Amsterdam.
This card is doubly great for Tesco shoppers, who'll benefit twice over from the Airmiles scheme - convert your Tesco Clubcard points into Airmiles and receive Airmiles when you spend enough instore.
4. Best for rebuilding a bad credit history - It's slim pickings in the credit card market for people with a poor credit history. But the Capital One Classic credit card gives you the opportunity to make good your credit history by giving you the credit you need to reshape your credit score.
The credit limit's not massive – it varies between £100 and £2,500 - but this is upped after four months if you pay your balances off on time and stay within your agreed credit limit.
And the card is issued in association with Equifax, the credit scoring agency, so you get notified about any changes to your credit file and you can access your credit report for free twice a year.
5. Best for spending - If you're still lucky enough to be able to splash the cash in the current economic climate, have a look at the Halifax/ Bank of Scotland All in One credit card.
The All In One offers 0% on purchases AND balance transfers for nine months, meaning it can be used for both purposes simultaneously and you needn't worry about the promotional offers ending one before the other.
So if you shopped 'til you dropped in the January sales, why not think about transferring the balance of an existing credit cards to the All In One? Beware though. Balance transfers must be made within 90 days of opening the account and you have to pay a 3% handling fee to qualify for the promotional deal.
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