5 Best Credit Cards in the UK [2024]

In 2024, UK cardholders are projected to make approximately 357 million credit card transactions. This staggering number highlights the increasing popularity of credit cards for purchases and financial management in the country.

Credit cards provide not only financial flexibility but also additional benefits such as cashback and rewards. However, looking for the best credit card can be overwhelming with the high number of options available in the market. 

To make the process easier, this article will walk you through the essential points to consider when comparing credit cards and provide a curated list of the best credit cards available in the UK. Whether you're looking to earn rewards, finance a large purchase, or rebuild your credit, we’ll break down each card’s benefits, fees, eligibility criteria, and who it’s best suited for.

Before we explore the options, let’s understand the essentials that will guide you in selecting your best credit card.

Check Your Credit Score

Understanding your credit status before applying for a credit card is essential. This three-digit number significantly influences your eligibility for various credit card offers. High scores give you access to premium cards with better rewards, while lower scores may limit you to credit-building cards.

In the UK, the primary credit reporting agencies are Experian, Equifax, and TransUnion, each offering slightly distinct services. Not every lender reports to all three agencies, which can sometimes cause discrepancies in your credit report. 

You can access your score for free through credit card providers or various services, such as  Experian, Credit Karma, and Money Super Market. This will give you an idea of where you stand. If your score is lower than expected, consider steps to improve it. For instance, pay your bills on time and reduce your debt before applying for a new card.

Determine Your Needs 

Consider cards that align with your spending habits and financial strategies. Ask yourself a question: What do you expect from a credit card? Whether you aim to build credit, save on interest, or earn rewards, your goal will narrow down the options. 

• If you want to earn rewards: Opt for rewards cards. These cards offer cash back, vouchers, points, or air miles, typically earned when you spend under certain conditions, such as at eligible stores or above a minimum amount. Common categories for earning rewards include grocery stores, gas stations, hotels, and airlines.
• If you travel frequently: There are credit cards designed specifically for travellers that focus on providing benefits like miles and access to airport lounges. Unlike many standard credit cards, travel credit cards don’t impose foreign transaction fees, allowing you to use them while travelling abroad.
• If you want to pay off some existing card debt: Consider using a balance transfer card. This type of card enables you to transfer your outstanding balance from one card to another, often at a lower or 0% interest rate for a limited time. However, a transfer fee may apply, usually ranging from 2% to 5% of the amount being transferred.
• If you want to build your credit: Consider using credit-building cards. These cards are designed for individuals who are new to credit or have low credit scores. When used responsibly, they can help improve your credit score. They should offer features like access to your credit score and opportunities for credit limit increases to support your credit journey.
• If you plan to make significant purchases, need to save on interest, or frequently carry balances: Explore credit cards with low-interest rates or balance transfer options. Some cards offer promotional 0% purchase rates, allowing you to spread the cost of large purchases over several months.

Compare Features and Offers

When you're checking out credit card options, it’s important to take a close look at each card's features and offers. Focus on these key areas:

• Credit-Building Potentials: For cards aimed at improving your credit, look for those that report to the major credit bureaus–Experian, Equifax, and TransUnion– and offer pathways to upgrade to better cards without requiring a new application.
• Introductory Offers and Ongoing APRs: To save on interest, focus on the card's APR details. Look for cards with 0% introductory APRs and be aware of how long they last and what the rate will change to afterwards. APRs are typically presented as “a representative example”, indicating the rates most approved applicants can expect, but your actual APR may differ based on your credit score and financial background.
• Rewards and Benefits: Evaluate the rewards structure, including sign-up bonuses and various redemption options available. Be mindful of how simple it is to accumulate and redeem rewards, and weigh the impact of any annual fees on the overall benefits you receive from the card. 
• Secured and Unsecured Credit Cards: A secured credit card requires a cash deposit as collateral, typically equal to your credit limit, while an unsecured credit card does not require any collateral. Most credit cards are unsecured, meaning you won't need to make a deposit. However, if you have poor credit, you might be offered a secured card.

Review Eligibility

Credit card companies usually have criteria for who can apply, like a minimum income or a good credit score. Checking the eligibility requirements before you apply can save you time and protect your credit score from unnecessary checks.

Many credit card providers in the UK offer a feature that allows you to check your eligibility in advance. This lets you see whether you qualify for a card and the minimum credit limit you might receive without a hard check that would impact your credit score.

Amex Platinum Cashback Everyday is a credit card from American Express, a multinational financial services company that primarily issues payment cards and processes payments. This credit card offers a generous cashback reward without the annual fee.

Additionally, cardholders can participate in Amex Offers, a program that rewards them for spending in categories like retail, travel, dining, and more, whether online or in-store.

Amex Cashback Everyday Key Benefits

• New customers earn 5% cash back on purchases in the first five months, up to GBP 125 if they haven’t had an Amex card in the last 24 months.
• Get an extra GBP 10 bonus cashback by meeting minimum spending requirements.
• Earn 0.5% cash back on up to GBP 10,000 spent and 1% on amounts over GBP 10,000, with a minimum spend of GBP 3,000 annually.
• Spread payments for purchases of GBP 100 or more into fixed monthly instalments.
• Travel Insurance
• Request up to five complimentary supplementary cards, subject to approval.
• Access discounts at partner retailers and special deals when booking travel through American Express.

We Recommend Amex Cashback Everyday For

✅ New Amex customers who looking to maximise their membership rewards in the early stages.

✅ Anyone seeking a cashback credit card that earns rewards on everyday purchases and travel perks without annual fees.

Amex Cashback Everyday Fees

For detailed pricing information, you should check the Summary Box on the American Express website.

Amex Cashback Everyday Eligibility Criteria

To apply for the card, you must meet the following requirements:

• Be aged 18 or over,
• Have a permanent UK home address,
• Have a current UK bank or building society account,
• Not have had bad debt in the past.

Before applying for the card, we recommend you use Amex’s eligibility checker. This tool can show how likely you are to get approved without affecting your credit score.

According to American Express, the application can be completed in 10 minutes and you could get a response within a minute.

The Halifax Clarity Mastercard® is a credit card tailored for travellers, provided by Halifax, a well-known British banking brand and a subsidiary of Lloyds Banking Group.

It is designed to be simple and assist with managing card spending both at home and abroad. Additionally, as a Mastercard®, it is globally accepted, making it convenient to use in various countries.

Halifax Clarity Key Benefits

• Fee-free international transactions on card purchases and cash withdrawals.
• Manage your account online, check balances, review recent transactions, and access statements. You can also make payments, request transfers, and more.
• Repay using a debit card or a direct debit.
• 24/7 UK call centre
• Contactless payments
• Compatible with Apple Pay and Google Pay.
• No annual fee
• Credit card purchases of a single item between GBP 100 and GBP 30,000 may be protected under Section 75 of the Consumer Credit Act 1974, even for purchases made outside the UK.

We Recommend Halifax Clarity For

✅ Frequent travellers. They can save more from international transaction fees, including purchases and cash withdrawals.

✅ For those who want a safer way to carry money when travelling abroad instead of large amounts of cash.

Halifax Clarity Fees

Halifax charges interest on cash withdrawals, but you can avoid interest on purchases by paying off the balance in full each month.

Mastercard® sets the exchange rate when you spend abroad.

Halifax Clarity Eligibility Criteria

To be eligible for a Halifax credit card, you must meet the following criteria: 

• Be at least 18 years old.
• Be a UK resident.
• Be employed with a regular annual income.
• Have no County Court Judgements (CCJs), Individual Voluntary Agreements (IVAs), or bankruptcies on their credit record.
• Not have been declined for a Halifax credit card within the last 30 days.

You can use the Halifax eligibility check to view your estimated credit limit before applying without affecting your credit score.

The Santander All-in-One Mastercard® is a multi-functional credit card offered by Santander UK plc, a UK bank that is a part of the Spanish Santander Group.

The card is designed to be versatile and appealing to everyone, including frequent shoppers and travellers, as well as individuals seeking rewards, balance transfers, or better financial management.

Santander All-in-One Credit Card Key Benefits

• Benefit from 0% interest on purchases for the first 15 months from account opening.
• Benefit from 0% interest on balance transfers for 15 months, with no balance transfer fee.
• Make overseas purchases without foreign exchange fees.
• Earn 0.5% cashback on all purchases, up to GBP 10 monthly.
• No foreign transaction fees will be charged on purchases and cash withdrawals made abroad in the local currency.
• Up to 3 additional cardholders
• Register for Santander Boosts to earn cashback on online shopping, receive vouchers for discounts, enjoy free gifts and prize draws, and access personalised offers based on your interests.
• Transfer balances starting from GBP 100 up to 95% of your credit limit.

We Recommend Santander All-in-One Credit Card For

✅ Individuals seeking a single credit card that offers multiple benefits, simplifying the management of various financial activities all in one place.

✅ Anyone seeking the rewards card to earn cashback on their everyday spending.

Santander All-in-One Credit Card Fees

For more information, you should check with the Key Facts Document.

Santander All-in-One Credit Card Eligibility Criteria

You can apply for an All-in-One Credit Card if you:

• Are 18 and over
• Are a permanent resident of the UK 
• Have an income of more than GBP 10,500 annually
• Don’t already have an All-in-One card.

You can use Santander's eligibility checker to see if you'll be approved and what credit limit you might receive before applying. This check won't affect your credit score.

Virgin Money Balance Transfer Credit Card is provided by Virgin Money, a full-service bank that has recently become part of Nationwide Building Society following its acquisition. This credit card allows you to consolidate balances from other existing credit cards or store cards into one account, simplifying repayment with a single monthly payment.

Virgin Money offers one of the longest promotional 0% interest periods on balance transfers among balance transfer credit card providers. 

Virgin Money Balance Transfer Credit Card Key Benefits

• 0% interest on balance transfers for up to 29 months. It applies to transfers made within the first 60 days. Transfer fees apply.
• 12 months at 0% interest on money transfers initiated in the first 60 days. Transfer fees apply.
• 3 months at 0% interest on purchases.
• Transfer up to 95% of your credit limit into your current account. 
• Move up to 95% of your credit limit to your Virgin Money Credit Card.
• Access the Virgin Money Credit Card app and enjoy cashback when you shop with selected brands like LNER trains, AVEDA, H&M, and more.

We Recommend Virgin Money Balance Transfer Credit Card For

✅ Those looking to consolidate all their credit card debt into one manageable monthly minimum payment and benefit from an interest-free period.

✅ Anyone aiming to pay off their debt faster by taking advantage of promotional balance transfer and money transfer credit card offers.

Virgin Money Balance Transfer Credit Card Eligibility Criteria

To be eligible for the Virgin Money Balance Transfer Credit Card, applicants must:

• Be UK residents aged 18 or older.
• Hold a UK bank or building society account.
• Have a personal income of at least GBP 7,000 per year or a household income of at least GBP 15,000 per year, or pass affordability checks conducted by Virgin Money.

You can use the Virgin Money Card Checker to quickly check your eligibility and potential credit limit for a Virgin Money Balance Transfer Credit Card before applying. The process won’t affect your credit score.

Virgin Money Balance Transfer Credit Card Fees

For more information, please visit the Virgin Money transfer fees and terms and conditions page.

The Tesco Bank Foundation Credit Card is issued by Tesco Bank, a retail bank offering a range of banking and insurance products.

This card is designed to assist individuals with poor credit or those new to credit in building or improving their credit score while earning rewards.

Tesco Bank Foundation Credit Card Key Benefits

• Initial credit limits range from GBP 250 to GBP 1,500
• You can qualify for regular credit limit increases if you consistently make your minimum payments on time and remain within your credit limit.
• Access Tesco Bank CreditView, powered by TransUnion, to monitor your credit score for three years after opening your account, with monthly updates included.
• Earn Clubcard points at almost all locations where you use your card, in addition to your usual Tesco points.
• You may be eligible to earn points every time you spend GBP 4 at Tesco and on Tesco fuel (excluding Esso) and for every GBP 8 spent elsewhere.

We Recommend Tesco Bank Foundation Credit Card For

• Those new to credit cards with no established credit history seeking grocery and fuel rewards.
• Individuals with a poor credit score who want to rebuild their credit standing.

Tesco Bank Foundation Credit Card Fees

Tesco Bank Foundation Credit Card Eligibility Criteria

Applicants must be UK residents aged 18 or older, and approval is based on individual financial status. 

While detailed criteria aren't listed online, you can use the Tesco Bank eligibility checker to view how likely you are to be accepted before applying. To complete the process, you'll need to share your residential history for the past three years, along with your annual income and monthly take-home pay. This process won’t affect your credit scores. 

Aside from the five choices listed above, these are some well-known credit cards in the UK.

• Barclaycard Platinum Credit Card - A popular choice for a purchase credit card for new Barclays customers, with credit card deals and balance transfers. It offers 0% interest on purchases for up to 21 months for new customers, subject to approval. Most customers receive at least 10 months of this offer, and a transfer fee of 3.45% applies.
• Amex Nectar Credit Card - A good reward credit card choice if you are a Nectar member. It features a generous welcome offer of 20,000 bonus Nectar points when you spend GBP 2,000 within the first three months, along with the opportunity to earn points for every GBP 1 spent. There is a GBP 30 annual fee (waived in the first year), and you must be a Nectar member with a valid membership number to apply.
• Santander Edge Credit Card - Another great option for cashback, offering 1-2% back on purchases with no foreign exchange fees on overseas transactions. There is a GBP 3 monthly fee. To qualify, you need a minimum annual income of GBP 10,500 and a Santander personal UK current account. Note that if you close your bank account, you will stop earning cashback.
• British Airways Amex Card - Ideal for those who frequently fly with British Airways. This is the only British Airways credit card with no annual fee. You can collect Avios on purchases, and you'll earn 5,000 bonus Avios when you spend GBP 2,000 in the first three months. The card also offers a Companion Voucher for travel.
• NatWest Balance Transfer Card - A good choice if you’re looking for a balance transfer card with no balance transfer fees, though it comes with a shorter promotional period of 0% interest for the first 13 months. There is no annual fee. 

As of July 2024, total credit card debt in the United Kingdom stands at GBP 71.19 billion, reflecting a 6.67% increase compared to the previous year.

Managing a credit card effectively is crucial for maintaining financial health and maximising rewards. Whether you’re new to credit cards or looking to refine your strategy, these tips should help you avoid common pitfalls and make the most of your card.

Set Up Direct Debit

Missed credit card payments are increasingly common in the UK, with the percentage of customers missing payments rising each month compared to the previous year.

A missed payment can result in a late fee, impact your credit score, and may also cause you to lose valuable benefits. Most introductory 0% interest rates are contingent on timely payments. Additionally, paying accumulated interest likely diminishes the value of even the best reward schemes.

One of the best ways to ensure you pay your credit card on time is by setting up a direct debit to pay off your full balance each month. 

Pay at Least Double the Minimum Payment

If you make only the minimum monthly payments on a credit card with an average interest rate, it would take approximately 27 years and 1 month to pay off the balance.

Making only the minimum payment each month likely costs you more in the long run. To reduce your debt faster, aim to pay at least double the amount of your interest, fees, and charges every month. This strategy helps decrease your balance more quickly and saves you money on interest.

Delay Applications If You Have Other Credit Application

Before applying for a new credit card, consider whether you have significant financial commitments on the horizon, such as a mortgage application. All credit card applications involve a hard credit check, which can have a temporary negative impact on your credit score. Assess whether the benefits of obtaining the card now outweigh the potential risks to other critical credit applications.

Read the Full Terms and Conditions 

It’s important to understand all fees, charges, and the duration of promotional rates. Know what happens if you miss a payment or exceed your credit limit. Some rewards cards may have a minimum spend requirement to earn cashback. Always check for minimum redemption thresholds to avoid surprises.

Create a Repayment Plan

Before committing to a new credit card, it’s important to outline your repayment strategy. This includes figuring out how much of your budget you can allocate to monthly credit card payments, planning how to pay off the balance before interest accrues, and setting a target to clear the entire balance within a specific timeframe (such as 3 or 6 months). You can also use an online debt repayment calculator to help with your estimations.

A solid repayment strategy is crucial for maintaining financial health and avoiding debt. If you find that you cannot meet the repayment obligations, the card is not the right choice for you.

Avoid Cash Withdrawals

Withdrawing cash using your credit card typically incurs high fees and interest rates. To maximise the benefits of your credit card and minimise costs, avoid using it for cash advances. Stick to purchases that you can pay off in full to take advantage of rewards without incurring unnecessary charges.

To find the right card for you, it's important to assess your financial situation and requirements closely. Identify the card that aligns with your needs and thoroughly review its terms and conditions and promotional offers before applying.

Maintaining a healthy consumer credit score is key. Ensure to pay your bills promptly and in full to avoid interest charges that can diminish the benefits of any rewards.