It might be tempting to think that if you want the best UK credit card, you need to look for the cheapest one. Even if it seems like a good idea, it would be wrong. To know if you have the best credit card available in the UK, you should make sure that it meets most, if not all, of your needs. Also, you should look at what the card has to offer:
Fees
Some UK credit card companies advertise low annual percentage rates of interest in order to be on "best deals" lists, but they make up for this by charging their cardholders fees for being members. Transaction fees and annual membership fees are two kinds of these fees. If your UK credit card company charges you fees but has a lower APR than other companies, you may find that when you add the fees to the APR, you end up paying more than if you had chosen a UK credit card company with a slightly higher APR but no fees.
Days with no interest charges
Not all UK credit card companies give you the same number of days without interest after you make a purchase on your credit card. In fact, the number of days with no interest can be anywhere from 36 to 54. So, which is better: a UK credit card issuer with a lower rate of interest for 36 days or a UK credit card issuer with a slightly higher rate of interest but 54 days of grace before interest is charged on the balance?
Reward programmes
You can make your credit card work for you with loyalty programmes. Think about a UK credit card company that gave you cash back on every purchase but had a slightly higher APR compared to a UK credit card company that didn't offer any rewards but had a slightly lower APR. Which do you think would be better? Well, this depends on how you use your credit card, but if you're the type of UK credit card user who pays off your balance at the end of every month, then the credit card issuer with the cash-back reward programme is definitely better.
Insurance
Under UK law, credit card companies must offer you insurance on the products you buy. This means that if the gift is broken, you can return it within a certain number of days. But does this also apply to purchases made abroad? Does it cover things I break myself? In fact, will your UK credit card company offer you extra insurances, such as medical insurance when you travel or insurance in case you have to cancel a trip you paid for with your credit card? If not, you might have to buy them separately, which could end up costing you more than the slightly higher cost of your UK credit card.
How you plan to use your credit card will have a lot to do with whether or not you are getting the best UK credit card deal. One thing it probably won't depend on is whether or not the card is the cheapest one available in the UK.
