Expert tips on how to find the best the credit card deals this February
A leading consumer expert has shared her tips on how to find the best credit card deals.
Jane Hawkes, founder of the Lady Janey blog, said February is a great month to switch to a new deal.
She said: “If used savvily and responsibly credit cards can provide invaluable consumer protection. They can also be very useful budgeting tools. There are a wide range to choose from so you can end up being spoiled for choice. To make things a bit easier, here are my top tips for how to find the best credit card deals.”
Here, Jan shares her top five tips.
- Assess Your Needs
Think about your spending habits and Identify what you spend the most money on which could impact on choice of card (e.g travel, groceries, eating out) Consider also what benefits you are looking for e.g cashback, travel rewards/air miles, low interest rates and fees, introductory bonuses or balance transfer options. if you are looking to make a big purchase, look for the longest interest free period to spread payments.
- Do your research
Use comparison websites to compare a variety of cards and visit providers’ websites for information on the latest offers and deals. These are regularly offered over the course of the year and are updated frequently. Do online searches for ‘best 0% credit card deals’ and ‘latest credit card deals’ to see updated lists of options.
Currently both MBNA and Barclaycard are offering 0% deals for 22 months with cashback rewards, and Lloyds Bank 21 months 0%.
Best balance transfer cards are being offered by Barclaycard (32 months 0% plus £20 cashback), MBNA (31 months 0% plus up to £25 cashback), Natwest (31 months) and Tesco (30 months 0%) Fees apply for these type of cards so check before you sign on the dotted line. A lesser fee may mean a lesser period of interest. Equally a higher fee may mean a longer period of validity for the transfer offer.
- Read the small print
Note the end of any interest-free periods as your card will revert to a much higher interest rate thereafter. Watch out for any particular T’s and C’s attached to offers. For example if balance transfers, money transfers and/or purchases need be made within a certain number of days for promotional offers to apply. Look out for any potential penalties: Some cards charge for late repayments or exceeding your limit whilst others have usage fees. Ensure you set up a direct debit to avoid missing monthly payments and incurring late fees.
- Apply strategically
Use eligibility checkers to find out if you’re likely to be accepted for the card you want. They are quick and easy to use, and won’t affect your credit score. Limit actual applications if possible. Applying for too many cards in a short time could impact your credit score. This is particularly important if you are thinking of applying for a mortgage anytime soon.
- Haggle
If you already have a credit card, contact your provider to negotiate better terms or enquire about upgrading to a card with better rates or perks. Choosing the ’I’m thinking of leaving you’ option can result in being directed to the ‘customer retention’ department. They in turn are usually empowered to be able to offer the best deals.
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