Best credit cards rated: Top for cashback, rewards and clearing debt

This is Money has scoured the market and picked out the best credit card deals to help you make the most of your money – whatever you plan to pay for on plastic.

As Britain becomes further entangled in the cost of living crisis and braces for even higher inflation, those with credit card debts could be feeling the strain.

Access to affordable credit can be important for people’s financial stability but one in five say they feel locked out of the financial system.

Buy now, pay later giant will report purchases paid on time, late payments and unpaid purchases to Experian and TransUnion.

Britons borrowed £1.4billion on credit cards, overdrafts, personal loans and car finance – the third consecutive month where borrowing topped £1billion.

Virgin Money has launched a new prize draw offering its current account customers the chance to win one million points to spend with rewards club Virgin Red.

For the past two months Experian has flooded my inbox with no fewer than 24 tempting credit card and personal loan deals. Four arrived in one week.

The BoE data shows credit card borrowing jumped by 10.6% in the last year, as the cost of living squeeze hits millions of households.

Many Britons will likely be hoping to put the last two years of lockdowns and tedious travel restrictions behind them by holidaying abroad in 2022.

Britons are being squeezed by the cost of living crisis and many will be looking for smart ways to make their money go further.

Among under-35s, as many as one in four believe they can’t get into debt using buy now, pay later when shopping online.

From August, the first replacement card will be free but any more will cost customers £5 if they misplace one or need to update their details.

New credit card borrowing in February was up 9.4% in a year while the size of the typical mortgage increased 10.4%, according to latest Bank of England data.

Like many online shoppers, Student Synthia Gazi (pictured) was first tempted to use buy now, pay later services to buy clothes.

As long as borrowers stick by conditions they can use these to clear debts with no interest, instead of typical credit card rates of 25 to 30 per cent interest.

The charity found that young adults, those in debt and those on Universal Credit were twice as likely to use BNPL for essentials than the general public.

Barclaycard has partnered with Avios to launch two new credit cards, giving new and existing customers the opportunity to collect points for every £1 spent.

Despite being a qualified financial advisor, Catherine Morgan (pictured) spiralled into debt after developing an addiction to clothes shopping.

Younger people are increasingly ditching credit cards in favour of buy now, pay later schemes a new study has found.

More than a third said they wouldn’t use BNPL providers – which include the likes of Klarna, Afterpay and Clearpay – at all, according to a YouGov poll.

The number of 16-24-year-olds contacting the FOS for debt help has risen sharply. We explain how to get your finances back on track.

Nearly half of 16-to-24 year-olds in Britain used BNPL services last year to help spread the cost of expensive fashion items and snazzy tech gear, new research suggests.

Britons now have the option of buy now pay later when shopping on Amazon’s website, following a partnership between the retail giant and Barclays Bank.

The promotions will be running until 28 February, meaning anyone wanting to make the most of them will need to act fairly rapidly.

Last year has been one of the most financially challenging. To help those who have found themselves in debt, This is Money speaks to the experts for advice on how to get out of the red.

For those who use credit cards to manage their debts, balance transfer cards are a way to cut down on costly interest payments by putting everything in one place.

Almost eight million Britons currently have significant outstanding balances with buy now pay later (BNPL) providers, averaging £538 each, according to new research.

Klarna has brought its BNPL app features to computer-based shoppers, and will also alert them to coupons and cashback offers.

Spenders are on the cusp of the biggest squeeze for a decade as soaring energy and fuel prices send inflation sky rocketing.

Amazon’s decision to no longer accept payments from UK-registered Visa credit cards from next year will undoubtedly cause concern among many UK shoppers.

See how long it will take you to clear your credit card balance if you only make minimum repayments (it’s scarey stuff)

When reporter AMELIA MURRAY (pictured) went to try out her new spending power in London, she was met with bemusement and suspicion.

The new contactless limit is being increased from £45 and customers will be able to make up to five transactions, worth up to £300, without being asked to enter their Pin.

New American Express customers could earn £264 in Nectar points or £150 in Amazon vouchers if they spend a certain amount after joining.

The online banking service will be offering its customers credit limits of up to £3,000 and will allow them to spread the cost of purchases over three, six or 12 months.

Amazon customers in the UK may soon be able to split the cost of their purchases into smaller monthly payments as it launches the service to some in the US.

The biggest upsurge in spending was in entertainment, leisure as well as food and drink as people celebrated the long weekend by going out to pubs, restaurants, festivals and zoos.

Lloyds Bank has launched a new credit card enabling its customers to earn cashback every time they spend.

Now shoppers are back out on the High Street in their droves and in May, consumers borrowed more money than they paid off for the first time since August 2020, according to the Bank of England.

Around 280,000 customers of its closed doorstep lending arm will receive emails directing them towards the UK’s 250 credit unions, and a group of nearly 50 affordable credit providers.

An increasing number of Britons used buy now, pay later schemes during the pandemic as people turned to online shopping during the lockdowns.

Around 14% of higher-rate and additional rate taxpayers fall ‘into the red’ for at least half the month compared to just 9% of basic-rate taxpayers, data from Hargreaves Lansdown claims.

M&S Bank has launched a new rewards credit card offering its customers enhanced rewards and a range of shopping vouchers among other benefits.

Borrowers of beleaguered subprime lender Amigo Loans have hit back after it sent them a survey asking them why they voted against its rescue plan.

Young borrowers are unknowingly putting their financial futures at risk, with many unaware about the damaging implications of missing loan or credit card repayments.

Although availability of interest-free deals and cards is low by historical standards, it has bounced back in recent months and there are now plenty of decent options, even if they aren’t as generous.

British Airways has handed families and holidaymakers ‘great news’ in the form of more than 250,000 extra seats for travellers booking flights using Avios points from the end of July.

Long-standing Barclaycard customer Mark Gough was told his credit card limit would be cut by £12,000, even though his income hadn’t changed. However, the bank changed its mind after he complained.

As buy now, pay later services like Klarna continue to grow in popularity, an increasing number of travel-focused services have cropped up.

Some 13,000 more people with problem debt could be allowed to ‘freeze’ their payments from next month under proposals published today by the Government.

Amex may have caught the eye of shoppers and takeaway fans this week after announcing one of its credit cards is now offering cashback when used for Deliveroo.

Amex’s market-leading cashback credit cards are getting a little less generous, with the provider slashing how much customers earn by as much as 50 per cent in some cases.

Britons with mounting debts will be able to ask for them to be put on hold for two months from today, after proposals two years in the making came into effect.

Barclaycard customers who have had their credit limits cut by as much as 95 per cent have faced yet more confusion, after wrongly being told new limits were based on their average balances.

Those looking to borrow to fund home improvements might not be able to take advantage of an interest-free advance from Conservative Party HQ, but they can benefit from a recent fall in loan rates.

Although a small percentage of the online credit market, the buy now, pay later sector has been booming, and everyone wants a slice of it, however controversial it has proven to be.

Checkout credit providers have been accused of making it too easy for young people to get into financial trouble, after research found they often didn’t realise they were taking on debt.

I have felt Barclaycard’s customer service disaster personally. My credit limit has been cut from £8,500 to £1,000 for no discernible reason.

Credit card provider Barclaycard is facing a mass exodus of loyal customers after suddenly slashing the credit limits of more than 100,000 customers by as much as 99 per cent.

Barclaycard customers have called on the provider to change its mind over its heavy-handed cutting of credit limits of cardholders whose financial circumstances have improved over the last year

One longstanding Barclaycard customer saw his limit cut from £11,000 to £300, while another’s was slashed from £8,500 to £1,000 without any checks on their finances.

Plans to regulate Britain’s booming buy now, pay later industry will be released within weeks, This is Money understands, after a review found it posed ‘a significant potential consumer harm’.

Credit card limits are tailored to individuals. Those with larger incomes and good repayment histories can usually borrow more; but limits can be cut if you fall behind on repayments.

45,000 investors in the now-defunct peer-to-peer lender RateSetter have had their accounts closed and their money returned after it was taken over by Metro Bank last August.

Hady Ahmad, 40, an oil industry engineer from West London, saw his income dry up towards the end of last February as the price of oil fell and travel restrictions were imposed due to the pandemic.

Klarna, which has more than 12 million UK customers, has the longest terms and conditions at 13,637 words and would take 57 minutes to read. The average word count is 8,673.

Roy made a claim for a cancelled New York trip in August 2020 with HSBC. However, he has been told he might not get a pay out until 2022.

Busted retailers and booming buy now, pay later payment methods has served to all but kill off the shop-branded credit card, new data suggests.

Britain’s largest guarantor lender Amigo Loans has been given the green light by the High Court to proceed with a scheme designed to cap the cost of compensation for mis-sold loans.

Regulators have been urged to crack down on ‘profiteering’ by Britain’s two largest card providers after Visa appeared to be joining Mastercard in massively hiking interchange fees this year.

John Lewis has launched a regulated online payment method in partnership with French bank BNP Paribas that will let customers borrow up to £35,000 to fund home improvements and pay it back over a year

Barclaycard, MBNA, Sainsbury’s Bank and Virgin Money have all increased the length of their 0% balance transfer and purchase terms since January.

The no-interest loan scheme was first unveiled by former Chancellor Philip Hammond in the 2018 Budget to help those below the poverty line access credit. But funding has only just been proposed.

Guarantor loans, which are typically taken out with the backing of a family member, were the most complained about finance product between October and December last year.

Thousands of Britons are complaining to the Financial Ombudsman Service about being mis-sold unaffordable guarantor loans, new figures reveal.

The schemes are expected to account for 10 per cent of UK online spending by 2024, the research predicts. The global report was compiled by payment processing technology provider Worldpay.

With high profile backers including Michael Sheen and Camilla, Duchess of Cornwall, credit unions have long been applauded for their co-operative membership model.

The Virgin Red scheme encourages people to visit its website or download the phone app – and buy goods and services offered by a number of online shops.

Insidious firms seeking to profit on people’s misery are using internet adverts to divert those struggling with money away from free help and advice and promising them easy ways to write of their debts.

Labour MP Stella Creasy and Tory MP Paul Maynard called for retailers to take further action after a review of buy now, pay later found it needed to be regulated ‘as a matter of urgency’.

Millions of Britons in need of debt advice due to the coronavirus pandemic could be pushed into unsuitable debt solutions by companies seeking to profit from commission, regulators have warned.

The Financial Conduct Authority has announced plans to regulate the buy-now-pay-later industry after purchases nearly quadrupled last year to £2.7bn as online shopping soared in lockdown.

Borrowers of Britain’s booming £2.7bn buy now, pay later industry will soon be able to complain to the Financial Ombudsman Service after it was announced lenders would be regulated.

A survey by AA Financial Services indicates that 40 per cent of adults are planning to borrow – with a new car, a holiday (travel restrictions permitting) and home improvements top of their purchase lists.

The websites ‘writeoffmydebt’ and ‘stepdebtsupport’ were criticised by the Advertising Standards Authority after a series of complaints.

American Express’ Nectar credit card is now one of the most generous ways of earning Avios points from everyday spending, with customers able to earn 1.25 Avios for every £1 they spend.

Sainsbury’s shoppers will be able to swap their groceries for getaways under a new tie-up announced between the supermarket’s Nectar scheme and British Airways.

Tesco Clubcard customers who wish to convert their points into Avios air miles have until midnight on Monday to do so before they can only swap them for Virgin Points.

The company, which last year took over the credit card business of Bank of Ireland in a £530million deal, says that a ‘small minority’ of customers were affected by the computer glitch.

Sainsbury’s Bank now offers the best 0% deal on the market, offering 29 months interest-free, after reopening its doors to non-Nectar customers last October.

The first step is to prioritise what you owe and not bury your head in the sand. We speak to the experts who give their advice for getting out of debt after a turbulent year.

In a year in which the world has never been sicker, Britain’s personal finances might end 2020 in a healthier state than they’ve ever been in before.

Daniel Robinson has seen £500 of his money lost by the credit card start-up, after he had not had any previous problems with the Post Office in the six years he had been with them.

Glamourous social media stars like Claire Menary (pictured), who attract thousands of aspiring followers are now under investigation over fears that they promoted ‘buy now, pay later’ credit.

The FCA said business and personal customers who fell into arrears on their borrowing between April 2014 and December 2018 were not properly contacted by Barclays..

Mastercard is one step closer to having to pay out as much as £14bn in total to more than 46m UK adults after it lost a landmark Supreme Court case.

Delayed payment providers have been asked to revamp their marketing by next March to ensure users are not being misled.

Frequent flyers should be aware that some of the most well-known airline loyalty schemes have had several shake-ups recently, with British Airways and Tesco Clubcard set to part ways.

Thousands of borrowers have received refunds in recent months after holidays, concerts and shows were cancelled due to Covid. Many believe this refund will count as their payment for that month.

Credit card providers are stealthily slicing 0% balance transfer windows leaving borrowers facing shorter time periods in which to repay their debts.

Peter Wilson, 69, from Bury St Edmunds, Suffolk, had his IHG Rewards Creation credit card replaced in May after he noticed thousands of pounds of payments to Apple on his account.

The number of new ‘sub-prime’ borrowers taking out credit cards increased by 143% between August and September, according to Equifax, more than twice the jump in overall card openings.

Council tax payments and subscriptions to Amazon Prime, Netflix and Spotify could boost Britons’ credit scores from today under a new feature launched by one of the big three credit reference agencies.

Post Office, Bank of Ireland and AA customers were bought by Jaja when it took over the Bank of Ireland’s credit cards. But since the transfer customers have reported a plethora of issues.

Hundreds of thousands of people still on breaks from their mortgages and unsecured debts face a potential ‘lender lottery’ from next month as blanket protections are removed.

The Information Commissioners’ Office said it was ‘making enquiries’ into the Swedish firm after receiving more than 90 complaints from people who received its weekly deals email.

There are just 66 balance transfer cards currently on the market, compared with 94 last year, according to finance analysts Defaqto. The cards allow customers to shift their credit card debts to a new card.

Thousands of gamers who had hard credit checks run on them and were told a direct debit to pay for the console had been set up were emailed telling them their application had actually been unsuccessful

Consumers last week were subjected to hard credit checks and had direct debits set up to pay for the new console over two years, but were unable to actually purchase it after retailers ran out of stock.

Britons borrowed more on credit cards, loans and overdrafts last month compared to July and saved less, official figures revealed, amid concerns household finances are increasingly under strain.

Thousands of shoppers who tried to pre-order the latest Microsoft Xbox were left fearing for the state of their credit scores after a bungle between high street retailers and the ‘buy now, pay later’ service Klarna.

Google is still making thousands from unregulated firms posing as legitimate charities, nearly a year on from introducing new guidelines which it said would help end the practice.

Figures from the credit rating agency Experian found half of consumers who searched for a credit card last month were shown at least one they were guaranteed to get, up from 24% in July.

Experts said Britain’s borrowing habits ‘will have changed permanently’ as a result of the coronavirus pandemic.

The credit reference agency said the amount people owed in non-mortgage borrowing fell from £11,615 to £9,681 between the 23 March lockdown and 8 June.

To tempt shoppers back to high streets, credit card giant American Express has launched a reward deal for customers who spend money in local stores and restaurants.

Diners looking to take advantage of the Government’s 50% discount scheme from Monday should know they can get an additional £5 off at certain shops, provided they use their credit card.

Hundreds of thousands of customers of Barclays and Santander have taken payment holidays, as official figures found consumers had cleared billions of pounds of debt over the last few months.

Due to the rise of buy now, pay later schemes, more people are purchasing items without paying for them at the time, despite this technically putting many into debt.

The Swedish company, one of Europe’s most successful start-ups with 8.6million UK users, has been on the back foot over the last few months amid claims it encourages more than they can afford.

The market research company Kantar estimated in May a fifth of all UK households had signed up to a TV streaming service like Amazon Prime, Netflix or the newly launched Disney+ since lockdown.

While people struggling financially will be able to ask for support and still take advantage of a £500 interest-free overdraft until October, many borrowers are in for a shock as banks hike the cost of overdrafts.

In a challenge to the big banks, peer-to-peer lender Zopa plans to launch its first credit card later this year.

Hard-up credit card and personal loan borrowers will be able to put their payments on hold for another three months, the FCA has confirmed.

Credit card rates hit a record high this month despite a record low base rate as providers hiked the cost of borrowing for those with poor credit histories or turned down by mainstream banks.

The Government should hand out £5bn in grants to those hardest hit financially so they can repay their debts and pay bills, StepChange says.

Credit card and loan borrowers may be able to put their payments on hold until the end of September, under plans reportedly being considered by banks and regulators.

Unscrupulous advertisers are mimicking the names of legitimate debt charities, research has revealed, raising fears that vulnerable people looking for help are at risk of bad advice.

Britain’s £221billion consumer debt pile shrank by nearly £7.5billion in April, the largest fall ever recorded by the Bank of England, as households took repayment holidays and cut their spending.

Amigo has seen an increase in new complaints made about it to the Financial Ombudsman Service over the last few years

The app is intended to build up your Experian credit score using a monthly fee closer to a subscription service than a credit card. In fact, it doesn’t even give you a card to buy things.

The number of interest-free credit card deals has fallen to a record low for the second successive month, as banks continue to slash the availability of unsecured debt.

The airline said the actual rate of Avios that you get for the price of your flight is roughly double what you would normally get if you bought Avios using cash.

Although Virgin Atlantic looks a little more secure, with the prospect of cancelled holidays for a while to come, some may be wondering if there are alternative uses for their thousands of air miles.

Former financial ombudsman Walter Merricks is taking Mastercard to court, claiming unlawful fees it charged shops between 1992 and 2008 resulted in consumers paying more.

Virgin Money apologised and reversed its decision, saying that everyone who had their card suspended will be able to use them to make purchases again from Saturday 9 May.

While borrowers make no payments for three months, card providers often still charge interest on balances during payment holidays, meaning borrowers continue to rack up interest

Customers of Virgin Money rounded on the bank after it suspended their credit cards, despite many of them not struggling with their repayments and clearing their balance in full.

Newcomers to American Express now have more time to rack up points bonuses for their credit card spending, with the card provider doubling the length of some of its welcome offers.

Households paid back a whopping £3.8bn more than they borrowed in March, the biggest figure on record, as households shunned their credit cards in the face of the coronavirus crisis.

Banks and credit card providers may levy fees on refunds as well as purchases, meaning a double whammy of charges on trips hit by coronavirus.

The UK arm of Santander revealed its pre-tax profit fell 58 per cent to £114million in the first three months of 2020.

The Financial Conduct Authority said many were encouraged by the publicity blitz it launched in the summer of 2019 to warn consumers that they had limited time left to make a complaint.

Next to a picture on social media app Snapchat of Ryan Reynolds teasing news about upcoming superhero film Deadpool 3, is a ‘sponsored’ post with its own teaser: that you can write off debt.

The Bank of England’s latest credit conditions survey revealed lenders believe the availability of household unsecured credit will decrease between April and June amid coronavirus.

Neil Seagrave, 35, from Dorset, tried to transfer his credit card balance to HSBC at the start of March before his zero-interest term with Sainsbury’s Bank expired, but this was not resolved until April.

Barclaycard, Sainsbury’s Bank and Tesco Bank have cut interest-free deals over the last month, some of which are the best around, as lenders evaluate their offers amid the coronavirus outbreak.

The FCA today brought in measures which offer consumers struggling with their finances bigger fee-free overdrafts and the ability to freeze credit and loan repayments for three months.

The UK economy is built on spending, often fuelled by debt – credit cards, personal loans, car finance. We don’t want to shrink it, only keep it manageable; and keep the Jenga tower from falling.

The FCA this morning proposed banks should offer customers in financial difficulty an interest-free overdraft up to £500, and let them put credit card and loan repayments on hold for three months.