The UK’s best credit cards of 2020

Rewards credit cards: Spend big and enjoy perks

Rewards credit cards offer points or cash based on the amount you spend. This “earn-rate” may vary according to where you use the card. A Tesco reward card is likely to earn you points at a higher rate when you use it in Tesco, for example. You can typically redeem your points for shopping, travel, gift vouchers etc.

Understand and compare rewards cards

Finder's pick: American Express Preferred Rewards Gold Card

• 10,000 Membership Rewards point welcome bonus
• 2 complimentary airport lounge visits per year
• No annual fee in year 1

Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a. with an annual fee of £140 (£0 in first year), your representative APR is 57.6% APR (variable).

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• Who are rewards cards suited to?

  Big spenders who clear their balance in full stand to benefit the most, and because these cards are often affiliated with a brand, for example Asda or Dorothy Perkins, if it’s a brand that you regularly spend money with, you’re likely to appreciate the rewards more.

• How can I find the best rewards credit card for me?

  1. What kind of rewards do you want to redeem? Reward programmes differ greatly in the variety of rewards they offer, from flights to shopping, gift cards and experiences. If the rewards on offer appeal to you, great. If they appeal to you, and they stand to save you money, that’s even better.
  2. What’s the earn-rate? Check how many points a card offers per £1 spent. It’s not unusual for the earn-rate to vary depending on where you use your card and/or how much you spend, so be realistic about how many points you’ll accrue.
  3. Is there a bonus on account opening? Rewards cards very often come with an introductory sweetener, like a lump sum of reward points or an enhanced earn-rate for a limited period.
  4. Is there a cap on points earnings? Many rewards credit cards also have points caps that only allow you to earn a specified amount of points during a statement period or over a year.
  5. Is there a minimum spend? Sometimes you’ll need to spend a minimum amount within a specified timeframe to enjoy that introductory bonus or to unlock the best earn-rates.
  6. How much will the card cost to run? The right rewards card for you should earn you more than it costs to run. Weigh up any annual/monthly fee (plus any interest charges you anticipate incurring) against the value of any rewards you expect to earn.
  7. Is this a card for the short-term or the long-term? The best credit card deal for you might only be the best for a short time. Your strategy might be to get the card, spend the minimum necessary to bag any introductory rewards then ditch it. Or, you might not want the hassle of changing cards every year or so. Whether you’re more interested in the short view or the long view will impact the importance of any introductory bonuses to you.
  8. Are you eligible? Most card issuers now offer a “soft search” facility so you can find out if you’re eligible without affecting your credit score.
  9. What else can the card do for you? Check the other features of the card, such as complimentary insurance, airport lounge passes or balance transfer offers.

Cashback credit cards: Earn cash not points on your day-to-day spending

Cashback credit cards reward you for spending in the form of pounds or credit on your account. How much you can earn will depend on the card’s “earn-rate”, plus any “earnings caps”. Cards that are affiliated with a brand may offer a better earn-rate when you spend with that brand, and in some cases cards come with an introductory enhanced earn-rate for a specified period or an enhanced earn-rate once your spending has exceeded a specified threshold.

Understand and compare cashback credit cards

Finder's pick: American Express Platinum Cashback Everyday Card

• 5% cashback for 3 months
• 0.5% ongoing cashback
• No annual fee

Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).

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• Who are cashback cards suited to?

  Big spenders who clear their balance in full every month and who prefer the flexibility and simplicity of cash rewards instead of point rewards will stand to benefit the most from this type of card.

• How can I find the best cashback credit card for me?

  1. What’s the earn-rate? Be realistic about how much you’d actually use the card, and calculate how much this would earn you, considering both the earn-rate plus any caps or restrictions on cashback. Use Finder’s cashback calculator to estimate the returns you could expect. It’s not unusual for the earn-rate to vary depending on where you use your card and/or how much you spend.
  2. Is there a cap on earnings? Many cashback cards limit the total cashback you can earn over a specified period.
  3. Is there a minimum spend? Sometimes you’ll need to spend a certain amount within a specified timeframe to maximise cashback earnings.
  4. Is there an introductory promotion? Cashback cards sometimes come with a brucie bonus – typically an enhanced earn-rate for a specified period. It might be that the “best” cashback option will only be the best for a certain period…
  5. Do you actually earn cashback (account credit) or vouchers? Watch out for cards billed as offering cashback, that actually issue vouchers (with restrictions on where they can be redeemed). Not really the same, is it?
  6. How much will the card cost to run? Interest rates on purchases tend to be quite high with this type of credit card, so if you carry a balance from month to month, the interest will probably outweigh the cashback earnings. Check whether or not the card you’re considering has a monthly or annual fee.
  7. Are you eligible? Some deals will be restricted to individuals with good credit. Most card issuers now offer a “soft search” facility however, so you can find out if you’re eligible without affecting your credit score.
  8. What other features does the card come with? While the cashback terms are likely to be your primary focus, some cards will have other features which might benefit you.

Frequent flyer credit cards: Earn travel rewards as you spend

Frequent flyer credit cards let you earn frequent flyer points or air miles on everyday purchases, either directly or by transferring card reward points to your chosen airline loyalty programme. These cards tend to be more premium options, so there’s often an annual fee to consider, but chances are it’ll be offset by some tasty perks.

Understand and compare frequent flyer cards

Finder's pick: British Airways American Express Card

• Earn 1 Avios per £1 spent
• 5,000-Avios welcome bonus
• Refer a friend bonus

Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).

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• Who are frequent flyer cards suited to?

  Anyone who wants to maximise their frequent flyer points total to enjoy free flights and other benefits. Those who spend a lot on their credit card but also clear their balance in full each month stand to benefit the most.

• How can I find the best frequent flyer credit card for me?

  1. Which frequent flyer programme is available? Some credit cards are tied directly to a specific airline rewards scheme, such as Virgin’s Flying Club or Lufthansa’s Miles & More. Others allow you to transfer credit card reward points to partner frequent flyer programmes. Lloyds Bank, for example, offers a card that earns Avios, which can be redeemed with a number of airlines.
  2. What is the points earn-rate? The earn-rate is the number of points you earn per £1 spent. It’s not unusual for the earn-rate to vary depending on where you use your card and/or how much you spend.
  3. Is there an introductory promotion? These cards often come with a “welcome bonus” – either a lump sum of points or a better points earn-rate for a specified period.
  4. Is there a cap on points earnings? Check whether there’s a cap on how many points you can earn each month or each year.
  5. Is there a minimum spend? Sometimes you’ll need to spend a certain amount within a specified timeframe to maximise points/miles earnings.
  6. How much will the card cost to run? Is there an annual/monthly account fee to pay, and if there is, do the potential rewards outweigh this? If you anticipate carrying a balance from month to month, what interest rate will you be charged?
  7. Are there any other perks? What other features do you want from your card? Does it come with perks like complimentary insurance or airport lounge access?
  8. Are you eligible? Most card issuers now offer a “soft search” facility so you can find out if you’re eligible without affecting your credit score.

Credit builder credit cards: Kick-start a positive credit history

Simple credit cards designed to improve credit scores, for people with bad or no credit history. Expect low starting credit limits which can be quickly reviewed provided the card is used responsibly. This type of card will often be a “stepping stone” product to credit products with a better interest rate.

Understand and compare credit builder cards

Finder's pick: Vanquis Bank Chrome Credit Card 24.7pc Visa

• Manageable opening credit limits of £250 to £1,000
• Build your Credit Limit up to £4,000 over time
• Stay in control with online servicing, mobile app, and text/email alerts

Representative example: When you spend £1,000 at a purchase rate of 24.7% (variable) p.a., your representative rate is 24.7% APR (variable).

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• Who are credit builder cards suited to?

  First-time credit card users or those looking to rebuild a poor credit record.

• How can I find the best credit builder credit card for me?

  1. Are you eligible? Start by checking whether you’re likely to be able to get approved for the card. Most card issuers offer a “soft search” facility so that you can find out if you’re eligible without affecting your credit score.
  2. How much will the card cost to run? These type of cards tend not to charge annual fees, but you should aim to pay off your full balance every month, as the standard interest rates tend to be high.
  3. What credit limits are available, and when are they reviewed? Credit builder cards tend to come with lower credit limits than other cards, but provided you use them responsibly, this will typically be reviewed after a specified interval. Limits are tailored to the individual, but a card issuer may declare the minimum and maximum credit limits available with a particular card.
  4. Does the card have any perks? Credit builders clearly aren’t about the rewards, but a select few do let you collect points on your spending or offer fee-free spending overseas.

0% purchase credit cards: Spread the cost of large purchases

0% purchase credit cards let you make purchases up to your credit limit and then pay 0% interest on them for a promotional, introductory period. At the end of this period, any outstanding balance will start to accrue interest at the card’s standard purchase rate, which will be much higher.

Understand and compare 0% purchase cards

Finder's pick: M&S Bank Shopping Plus Mastercard

• Purchases 0% for 20 months reverting to 19.9%
• Balance transfers 0% for 20 months reverting to 19.9%
• Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.

Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).

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• Who are 0% purchase credit cards suited to?

  If you’re anticipating a major upcoming expenditure – perhaps a new car or getting hitched, then a 0% purchase credit card could let you spread the cost without incurring interest.

• How can I find the best 0% purchase credit card for me?

  1. How good is the 0% purchase offer? Purchases offers feature 0% interest during the promotional period only, so you’ll want to consider how long the promotional period lasts. Check to see if the 0% rate applies to purchases made at any point during the promotional period, or if it only applies to purchases made within a specified window from account opening.
  2. What’s the revert rate? When the promotional 0% period is up, you’ll start being charged interest on any outstanding balance. If there’s a chance you won’t clear your balance before this point, then the rate that your balance reverts to should be a consideration. Yes, you could apply for a new 0% deal at this point, but acceptance is never guaranteed.
  3. What fees apply? Some cards come with an annual or monthly fee, although these tend to be the more premium rewards cards. Other fees you could find yourself hit with include cash advance fees and non-sterling transaction fees.
  4. Are you eligible? The longest 0% deals on the market are likely to be restricted to individuals with good credit. Most card issuers now offer a “soft search” facility though, so you can find out if you’re eligible without affecting your credit score. It’s not unusual for applicants with less-than-perfect credit scores to be offered a shorter 0% deal.
  5. What other features does the card come with? While the details of the purchases deal are likely to be your primary focus, some cards will have other features which might benefit you. For example a Sainsbury’s Bank or American Express credit card might reward your spending with Nectar points.

Balance transfer credit cards: Repay debt at 0% interest

Balance transfer credit cards let you move existing credit card debt to a new card, where you’ll enjoy 0% interest on the balance for a set period. At the end of this introductory 0% period, the card’s standard rate kicks in – which is typically much higher. Provided you don’t use them for additional spending, these cards allow you to clear debt faster, because all of your monthly repayment goes towards the outstanding balance.

Understand and compare balance transfer cards

Finder's pick: NatWest Balance Transfer Credit Card (eligibility criteria apply)

Available for existing current account, savings, mortgage or credit card customers only.

• Balance transfers at 0% for the first 20 months with no fee, thereafter standard rates apply. Transfers need to be within the first 3 months of account opening.
• Purchases 0% for 3 months reverting to 19.9% p.a. (variable).

Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable), your representative rate is 19.9% APR (variable).

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• Who are balance transfer credit cards suited to?

  If you have existing credit card debt that’s accumulating interest, a balance transfer deal can help you to pay off that debt faster (and more cheaply).

• How can I find the best balance transfer credit card for me?

  1. How long is the balance transfer offer? Most current balance transfer offers feature 0% interest for a promotional period. Divide your outstanding debt by the number of months, and you’ll see how much you’ll need to pay each month to clear your debt.
  2. How much is the balance transfer fee? Balance transfer deals usually come with a balance transfer fee (which is generally a percentage of the amount being transferred – typically around 3%), which becomes more significant if you’re transferring a larger balance. It is possible to find fee-free balance transfer deals, but these usually won’t have the very longest 0% interest periods available.
  3. Are there any limitations? Check whether the 0% rate only applies to transfers within a specific window from account opening. For example, a card’s promotion might be worded: “0% interest for 24 months on balances transferred within 60 days from account opening”.
  4. What’s the revert rate? When the promotional 0% period is up, you’ll start being charged interest on any outstanding balance. If there’s a chance you won’t clear your balance before this point, then the rate that your balance reverts to should be a consideration. Yes, you could apply for a new 0% deal at this point, but acceptance is never guaranteed.
  5. What other fees apply? Check to see whether the cards you’re considering come with an annual or monthly account fee. Other fees you might incur include cash advance fees and non-sterling transaction fees.
  6. Are you eligible? The longest 0% deals on the market are likely to be restricted to individuals with very good credit. Look foe an “eligibility checker” so that you can find out if you’re eligible without affecting your credit score. It’s not unusual for applicants with less-than-perfect credit scores to be offered a shorter 0% deal.
  7. What other features does the card come with? While the details of the balance transfer interest deal are likely to be your primary focus, some cards will have other features which might benefit you. For example a Sainsbury’s Bank or American Express credit card might reward your spending with Nectar points.

• Video: Choosing the right balance transfer deal

Travel credit cards: Pay overseas without fees

These credit cards are designed to make it more affordable to spend money overseas or online with international retailers. Unlike most debit and credit cards, they don’t charge a foreign transaction fee when you use your card to spend in an international currency or withdraw cash abroad (although the ATM owner may still charge a fee). Currencies will usually be converted using the standard Mastercard rate or Visa rate. Just remember that “fee-free” does not mean “interest-free”.

Understand and compare 0% foreign transaction fee cards

Finder's pick: The NatWest Credit Card

• No annual fee
• 0% fees on overseas spend
• Low ongoing rates

Representative example: When you spend £1,200 at a purchase rate of 9.9% (variable) p.a., your representative rate is 9.9% APR (variable).

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• Who are travel credit cards suited to?

  If you’re a frequent traveller, have a holiday coming up or regularly use your credit card for shopping with international stores online, a no foreign transaction fee card could be a smart way to avoid extra costs.

• How can I find the best low or no foreign transaction fee card for me?

  1. Does commission-free currency conversion apply for the country you’re visiting? While there are plenty of cards offering fee-free spending overseas, some will restrict this to Europe. Sometimes the quickest way to get to the bottom of this one is to look for the card’s “summary box” – all card issuers are obliged to provide this standardised document.
  2. What network is the card on? There’s no getting away from it – Visa and Mastercard are the most widely-accepted networks. If a merchant takes plastic, it probably takes Visa and Mastercard. If you plan on heading overseas with your Amex, it could be worth backing this up with a Visa or Mastercard.
  3. What fees will apply if you withdraw cash abroad? Check whether the commission-free currency conversion applies to cash advances, and check whether there’s a flat fee for cash advances. If you’re heading to a country with a largely cash-based economy, this is an important one. Don’t forget that whatever your card issuer’s policy is, a bank overseas may still charge you for the privilege of using their cash machine.
  4. What point is interest charged from? Usually, provided you clear your balance in full each month you can enjoy up to 55 or 56 days interest-free on your purchases. However, it’s not unusual for non-sterling transactions to incur interest from the day on which your account was debited, regardless of your repayment habits.
  5. Are there any travel perks? If you’re looking to use your card overseas, see if it can offer further savings/earnings like complimentary credit card travel insurance. The insurance available and eligibility requirements differ from card to card, so comparing options will help you make sure the cover is right for you. Other travel perks that could come with a no foreign transaction fee card include rewards programs and airport lounge access.
  6. How much will the card cost to run? You may be saving on foreign currency conversion fees, but you’ll want to make sure any interest or annual/monthly account fees that you stand to incur don’t outweigh these savings. It’s not unusual for a travel credit card to be your “second” credit card – in other words you might have one card for use at home, and one for using when you’re out of the country.
  7. Are you eligible? Some deals will be restricted to individuals with good credit. Look for a “quick check” or “eligibility checker” facility, so that you can find out if you have a decent shot at getting approved.

  When you’re using one of these cards, don’t forget that if a merchant/bank abroad offers to take payment in sterling (this is called dynamic currency conversion), you should decline and choose to pay in the local currency. Otherwise the it will be the local bank or merchant whose currency conversion fee structure will apply, rather than your card issuer’s.

Our customer satisfaction chart

We asked cardholders whether or not they would recommend their card issuer to a friend. The recommendation scores below show the percentage of each brand’s customers who would.

Overall satisfaction	Customers who’d recommend	Issuer	Review
★★★★★	85%		Credit where credit’s due – it’s probably fair to say the Americans do customer service better than us Brits. Amex is fighting hard to win new customers at the moment, so it’s no surprise that it’s investing in leaving a decent impression.	View deals
★★★★★	85%		Santander has some of the stronger 0% deals on the market, but it also offers a couple of fairly luxurious rewards/perks cards. Customers in our 2020 survey loved the cashback deals on offer.	View deals
★★★★★	85%		The oldest bank in UK has managed to keep its customer service standards high for centuries and offers a super-comprehensive range of cards. Customers in our survey praised Barclaycard’s good interest deals.	View deals
★★★★★	84%		Tesco Bank credit cards all earn Clubcard points. Despite being competitive cards in their own right, as you’d expect, they’re most popular with Tesco shoppers.	View deals
★★★★★	79%		Virgin Money has a wide range of cards on offer, including a few with some of the longest 0% deals. Customers with a Virgin Money credit card can also sign up to a range of reward schemes, like cashback and money-off offers for family days out.	View deals
★★★★★	77%		One of the world’s largest banks, HSBC has several cards on offer, including good 0% balance transfers deals, and a credit card designed especially for students.	View deals
★★★★★	77%		The UK’s second largest supermarket chain, Sainsbury’s Bank offers some of the longest 0% deals around. You can also earn extra Nectar points whenever you use your card.	View deals
★★★★★	76%		NatWest offers a small but diverse range of cards, including a student card and a couple of strong premium reward cards. Customers surveyed appreciated the bank’s rewards programme but not its interest rates.	View deals
★★★★★	69%		Halifax offers a good selection of balance transfer cards, with a range of 0% deals. There’s also a low interest flexicard and card with zero fees for spending abroad, which customers in our survey were particularly pleased with.	View deals
★★★★★	69%		Part of the Lloyds Bank Group, MBNA offers several highly competitive 0% and low interest deals. Customers in our survey praised the bank’s online account management tools and customer service, but reported sudden interest rate increases.	View deals
★★★★★	68%		M&S Bank keep things simple with only a handful of cards on offer. These will particularly appeal to M&S customer, as you can earn points to spend in store. Customers surveyed were impressed with the rewards on offer, but not the online banking system.	View deals
★★★★★	67%		Capital One has built itself on providing a fair and straightforward approach to credit, making it particularly good for those with lower credit scores. The interest rates for Capital One cards are high, so not paying off charges in full can lead to financial difficulties.	View deals
★★★★★	66%		One of the biggest banking groups in the UK, Lloyds Bank has a range of cards with great 0% deals and generally relatively low interest rates. Customers in our survey praised the bank’s efficient and reliable customer service and easy application process.	View deals
★★★★★	64%		Another good option for people with low credit scores, Aqua prides itself on helping customers move on to stronger financial products. The interest rates for Aqua cards are high, but there are no annual fees and customers in our survey praised the company’s transparency and good service.	View deals

Frequently asked questions