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Best Credit Cards

Are you looking for the best credit cards? You may well have spotted that there are plenty of websites online advertising price comparison tables that are aimed at providing the very best credit card.

But what does the best credit card really mean? This is something that it's worth considering at the outset.

Credit card borrowing is expensive

That sounds like a fairly dramatic statement, but it's worth remembering. Borrowing using a credit card is typically an expensive way of doing things. When you look at typical APRs (which offer a way of comparing how much interest that you'll pay), you'll often spot that interest rates are higher for credit cards than they are for personal loans, mortgages and many other forms of borrowing.

Many price comparison charts compare the cost of borrowing and suggest cards that offer lower interest rates. The reality is that your best way of keeping interest payments low will be to avoid them altogether. If you can pay off your credit card bill in full each month then you should be able to avoid paying any interest.

But we know that this approach won't be possible for everyone.

If you know that you'll be forced to pay interest at some point then take a look at the total costs involved. We know it's boring, but you might want to set up a little spreadsheet. Compare how much each card will cost you over a 12-month period, for instance, as a guide.

Comparing credit card costs

You'll need to think about the outstanding balance that you'll have on your card, interest payments, balance transfer charges, cashback rewards and any other charges that apply.

Plug all of the information into a spreadsheet and compare the total amount that each card will cost you. This should give you a true indication of how much you'll need to pay.

Don't simply rely on price comparison charts that you see on some websites. You'll notice that we don't include any here at Finance Facts. That's because rates change rapidly and we don't want to mislead you.

Some sites do list comparisons, but don't list all of the cards available on the market. Others may take a commission for promoting particular cards. We do too - that's why we don't want to list them in the form of a comparison chart. Rather than recommending any particular cards, we'd rather that you carry out your own comparisons to find the best credit card for your needs.

You're in the best position to select the right card.

Leading credit card providers

Shown in alphabetical order:

360 Money (prepay credit cards)
AA Credit Cards
American Express
Aqua Card
BaBeeCard (prepay cards)
Bank Of Scotland
CardOne (prepay cards)
Cashplus (prepay cards)
Egg
Freedom (prepay cards)
Halifax Credit Cards
HSBC Credit Cards
Kalixa (prepay cards)
Provident Financial
Secure Trust (prepay cards)
Vanquis
Virgin Atlantic Credit Cards
Virgin Money
Virgin Prepay Cards (prepay cards)
White Eagle (prepay cards)