Eligibility
How do credit cards work?
Learn the basics, from billing to repayments
What are the different types of credit card you can apply for?
The best type of credit card for you will depend on how you plan to use it. Below are some popular options - just remember, you’ll need to make at least the minimum payments each month.
Card type | Best for | How it works | Watch out for |
|---|---|---|---|
Our customers ask to transfer a balance of £5,132 on average1. | Clearing debt on an existing card | Charges 0% interest for a set time – sometimes as long as three years | A balance transfer fee of 2-4% usually applies |
Our customers ask for a credit limit of £4,339 on average1. | Big purchases and unexpected costs | Lets you spend interest-free for a set period, sometimes two years or more | Interest kicks in on anything left once the 0% period ends |
Getting the benefits of both worlds | Dual or 'combo' cards give you 0% on both balance transfers and purchases | The 0% periods often differ for the transfer vs new spending – always check before applying | |
Getting rewarded for everyday spending | Earn perks such as points or air miles on your spending | They charge interest, and sometimes have annual fees and minimum spends, so check it’s the right option | |
Earning money back on planned spending | Gives you a percentage or fixed amount of your spend back as cash, usually monthly or annually | They usually charge interest, so clear your bill in full each month for the maximum gain | |
Spending abroad | Fee-free spending abroad, competitive exchange rates. Some cards may offer fee-free cash withdrawals | Clear your balance in full to avoid paying interest | |
Our customers request a £1,592 credit limit on average1. | Building your credit score up | You start with a low credit limit and high interest rate, then slowly build your score by repaying on time | High interest if you don't clear the balance in full each month |
Our customers want to make a £4,958 money transfer on average1. | When you need to access cash | Moves money from your card into your bank account, often at 0% or low interest | A fee of 3-4% usually applies – higher than a balance transfer fee |
What our expert says...
“Different types of credit cards offer different perks and pitfalls. This means a card that's suitable for one person may be unsuitable for someone else, so carefully consider what is right for you.
"For example, if you can afford to pay off your card in full each month then a rewards card could be great for you. A 0% purchase card, on the other hand, might be helpful if you need to buy something big that you can't afford to pay for all in one go. Some lenders are offering up to 26 months interest-free spending, as of October 2026.
"Whatever you choose, always stick to the key dos and don'ts of credit cards: never go over your credit limit, always make at least the minimum monthly payment on time, and only spend what you're confident you can repay.”