If you travel regularly for work or enjoy holidaying abroad, the right credit card could make a big difference. A rewards credit card which offers flight points could mean you cut flight costs – helping you save money on a holiday – or let you upgrade your seat for less.

There are several credit card providers offering airline or flight points as a reward for spending, such as American Express, Virgin Money and Barclays.

But which is the best credit card for flight points, such as Avios or Virgin Points? We break down the different options available right now, comparing what’s on offer, monthly or annual fees and any extra perks like airport lounge access or travel insurance.

What is an airline miles credit card?

An airline miles credit card is a type of reward credit card that lets you collect points on your everyday spending, which can then be used towards flights.

Once you’ve collected enough points or airline miles, you can typically redeem them – unlocking perks like free or reduced flights, seat upgrades, extra baggage, airport lounge access or even other travel expenses like hotel stays or car hires, depending on the provider.

Different airlines have their own schemes. The most popular ones are Avios, run by British Airways – which can also be used with BA’s partner airlines – and Virgin Atlantic’s Virgin points.

Are airline miles credit cards worth it?

Airline miles credit cards can offer lucrative rewards, particularly if you’re a higher spender or you travel often. They can make your journey more rewarding.

However, there are a few caveats. You can only redeem points with certain airlines or providers, and you will need to be flexible with your travel itinerary, as flights paid for with points tend to have limited availability, especially during peak travel times.

Keep in mind that you will have to repay your credit card bill in full each month, or you will be stung with high interest rates.

The best credit cards for flight points

Below, we round up the top credit cards for airline miles and reward points. We’ve done a breakdown based on annual cost, representative APR, welcome bonus and extra perks you can get.

American Express Rewards Credit Card

This is the most cost-effective travel reward credit card for customers, as it lets you earn points on your spending but has no annual fee. It comes with these perks:

• 10,000 Membership Rewards points when you spend £2,000 in your first three months. You don’t qualify if you’ve already had an Amex card in the past 24 months.
• Earn 1 point for every £1 spent on purchases.
• Earn 4,000 points for inviting a friend – provided their application is approved.

Membership Rewards points don’t have to be redeemed as flight points, but you have the option to transfer them to an Amex loyalty partner programme such as an airline’s frequent flier scheme.

For instance, 40,000 points could get you a return economy flight to Dubai with Virgin Atlantic. You can also redeem your points on eligible purchases at PayPal, Amazon, Boots, Currys, etc.

British Airways American Express Credit Card

Another cost-effective option is the British Airways American Express Credit Card. It doesn’t have an annual fee, and it lets you collect Avios on any purchases you make. Some of its perks include:

• 5,000 bonus Avios when you spend £2,000 in your first three months
• One Avios for every £1 spent on purchases.
• 1,000 Avios when you add the first Supplementary Card – an extra card issued to a family member or friend – to your account.
• Earn 4,000 points for inviting a friend – provided their application is approved.
• Get a companion voucher when you spend £15,000 each cardmembership year.
• Covered for Travel Accident Insurance of up to £75,000 on public transport.

You can redeem vouchers when booking a British Airways, Iberia or Aer Lingus Reward flight. We look at Avios-only flights and companion vouchers in a separate guide.

American Express Preferred Rewards Gold Credit Card

If you’re a frequent traveller and want more value for your money, the American Express Preferred Rewards Credit Card may be a suitable option. While it comes at a steep cost of £195 (£0 in the first year), it could be offset by the amount of points and rewards on offer. This includes:

• 40,000 bonus Membership Rewards points when you spend £5,000 in the first six months. This reverts to 20,000 points once the offer ends after 26 May 2026. You don’t qualify if you’ve already had an Amex card in the past 24 months.
• Earn three points for every £1 spent on Amex Travel, two points for every £1 spent directly with airlines, and one point for every £1 spent on eligible purchases.
• Four complimentary Priority Pass airport lounge passes a year at up to 1,300 lounges at airports around the world
• Get US $100 hotel credit when you book two or more nights with The Hotel Collection, which can go towards spa purchases, food and beverage, late check-out, room upgrades and more.
• Free Travel Accident Insurance up to £250,000 and Travel Inconvenience Insurance up to £200.
• £10 back per month on Deliveroo, or effectively £120 a year

American Express Nectar Credit Card

If you’re a regular Sainsbury’s shopper, you might find that the American Express Nectar Credit Card offers you the best value for money. It has an annual cost of £30, which comes in the second year, so you can trial the card for a year to see if it’s ideal for you. Here’s what you’ll get:

• 20,000 bonus Nectar points when you spend £2,000 in your first three months. You don’t qualify for this offer if you’ve already had an Amex card in the past 24 months.
• Earn 3 points for every £1 spent at Nectar partners, and 2 points for every £1 on purchases
• Invite a friend and earn 5,000 points if they are approved.

Nectar points can be converted into Avios – 400 Nectar points equal 250 Avios. This means the welcome bonus is worth 12,500 Avios.

Virgin Atlantic Reward Credit Card

If you fly with Virgin or are a banking customer of theirs, you may want to consider getting the Virgin Atlantic Reward Credit Card. It has no annual fee. The perks that come with this card include:

• 3,000 welcome bonus points when you make a purchase in the first 90 days.
• Until 18 May, earn another 3,000 Virgin Points if you spend £1,000 within 90 days of taking out the card. Make sure you link your Flying Club number to your credit card by 16 August to be eligible for the bonus.
• 0.75 Virgin Points for every £1 spent on everyday purchases, and 1.5 points for every £1 spent with Virgin Atlantic or Virgin Holidays.
• Get a flight upgrade or a companion ticket when you spend over £20,000 in a year.

We take a look at how Virgin Flying Club works in a separate guide.

Virgin Atlantic Reward Plus Credit Card

For higher spenders and frequent flyers, it’s worth checking out the Virgin Atlantic Reward Plus Credit Card, a premium version of the above reward credit card. The annual fee is £160, but this may be offset using Virgin Points. Here’s how you can earn them:

• 18,000 welcome bonus points when you make a purchase in the first 90 days.
• Until 18 May, earn another 18,000 Virgin Points if you spend £3,000 within 90 days of taking out the card. Make sure you link your Flying Club number to your credit card by 16 August to be eligible for the bonus.
• 1.5 Virgin Points for every £1 spent on everyday purchases, and 3 points for every £1 spent with Virgin Atlantic or Virgin Holidays.
• Get a flight upgrade or a companion ticket when you spend over £10,000 in a year.

Barclaycard Avios

If you fly British Airways and want to collect Avios, Barclaycard Avios may be a good place to start, considering it comes with no annual fee. Here are the perks you can get:

• Collect 5,000 Avios if you spend £1,000 in the first three months
• 1 Avios for every £1 spent on eligible purchases.
• When you hit £20,000 spent on your card within 12 months, you can choose between a British Airways cabin upgrade voucher to use on an Avios Reward Flight booking, or opt for 7,000 bonus Avios.

If you change from an existing Barclaycard to this one, you can still get 1,000 Avios when you spend at least £1,000 within three months.

For example, if you have collected 19,500 Avios points, by spending just £1, you can get a peak-time, economy return flight from London to Milan.

Barclaycard Avios Plus

For premium flyers and avid points collectors, the Barclaycard Avios Plus can mean you get more points and rewards on your travel. This is the most expensive card on the market, costing £20 monthly, or £240 annually. Here are perks that come with the premium card:

• Collect 25,000 Avios if you spend £3,000 in the first three months
• 1.5 Avios for every £1 spent on eligible purchases.
• When you spend £10,000 on your card within 12 months, you can choose between a British Airways cabin upgrade voucher to use on an Avios Reward Flight booking, or opt for 7,000 bonus Avios.
• Access to over 1,000 airport lounges worldwide at a discounted rate of £20.50 per lounge pass per person.

If you change from an existing Barclaycard to this one, you can still get 5,000 Avios when you spend at least £3,000 within three months.

For example, if you use 43,000 Avios points and pay £33, you can get a peak, Club Europe business-class return flight from London to Venice, Lisbon or Madrid.

Which is the best credit card for flight points?

If you’re new to credit cards and still want to make the most of your travel, you might want to trial a credit card with a £0 annual fee – or opt for an Amex Preferred Rewards Gold card, which is free for a year, to determine if the rewards are worth it.

If you’re keen on a companion voucher or flight upgrade without having to fork out hundreds, you can trial the Barclaycard Avios or the British Airways Amex card. We look at the best credit cards for airport lounge access in a separate guide.

According to Head for Points, the Virgin Atlantic Reward Plus Credit Card is “clearly the best deal” in the first year, given the boosted bonus. “36,000 Virgin Points easily offsets the £160 annual fee for the first year. More importantly, once you have the Reward Plus card, you are earning the superior 1.5 points per £1 whenever you shop. You also trigger the annual voucher more quickly.”

However, consider if you’re likely to use Virgin points before you apply. If you typically fly with British Airways instead, collecting Virgin points might not be right for you.

As per Which?, the Virgin Atlantic Reward Plus Credit Card is the most competitive, but its free version is more cost-friendly. The American Express Rewards Credit Card is a ‘best buy’ due to its zero annual fee and flexibility.

However, it’s worth remembering that based on your needs and preferences, one card could be more suitable than the other – so if you value premium services, you might be comfortable paying more to get value for money.

Spending money on a credit or debit card can give you greater protection on large purchases than with cash – such as chargeback and section 75 for credit card users. But some of these cards also come with extra perks, such as cashback, rewards points or complimentary access to an airport lounge.

When you’re choosing a new rewards credit card, it’s important to first consider which benefits you are likely to actually use.

An airline credit card or a travel credit card which has fee-free overseas spending will be more attractive if you go abroad often, but might not be as useful if you tend to stay in the UK.

Frequent fliers may value the comfort and complimentary refreshments in airport lounges, and some credit cards and packaged bank accounts include complimentary or discounted access as a benefit.

We list the top credit cards for airport lounge access below. It’s a good idea to compare these cards with other options and consider whether the majority of benefits are worth it to you – rather than choosing the card solely for the airport lounge perks. You could get airport lounge access for less in other ways.

Remember, these cards are only worth having if you are able to pay off the credit card bill in full each month to avoid high interest charges.

Top credit cards for airport lounge access

American Express Preferred Rewards Gold Credit Card

Representative 85.8% APR variable

Fee: £195 per year (£0 in your first year)

Airport lounge access: Four free Priority Pass visits per year

Benefits include:

• Earn 20,000 Membership Rewards bonus points when you spend £3,000 in the first three months of card membership (only available if you don’t have a personal American Express card and haven’t had one in the past 24 months).
• Earn one point for every £1 spent, two points for every £1 spent directly on airline purchases, and three points per £1 spent via American Express Travel.
• Get four complimentary Priority Pass airport lounge visits per year.
• Get £5 Deliveroo statement credit – twice per month (enrolment for this benefit is required).

American Express Platinum Card

Representative 685.3% APR variable

Fee: £650 per year

Airport lounge access: Free, unlimited access, including one guest

Benefits include:

• Earn 50,000 membership rewards bonus points when you spend £6,000 in the first six months of card membership. This offer is only available if you don’t currently have a personal American Express card that earns membership rewards points, and you haven’t had one in the past 24 months.
• Earn one point for every £1 spent and two points for every £1 spent with Amex Travel.
• Complimentary access to more than 1,550 airport lounges across more than 140 countries worldwide including the American Express lounges. The cardmember can bring up to one guest into the lounge at no cost, although guest access policies may vary depending on location.
• Metal card.
• Worldwide travel insurance.
• Global Dining Statement Credit – enrol to get up to £200 in statement credits to spend in over 2,000 selected restaurants in the UK each year, plus a further £200 for spending abroad.
• Hotel benefits – complimentary benefits worth an average total value of $600 with Fine Hotels & Resorts at over 1,500 luxury hotels worldwide. This includes room upgrades when available, complimentary breakfast and guaranteed 4pm late check-out. Plus, benefits with The Hotel Collection including US $100 hotel credit and late checkout.

We look at the top American Express credit cards in a separate piece.

Santander World Elite Mastercard

This card is exclusively for Santander Select and Private Banking customers.

Representative 49.8% APR

Fee: £15 per month (equivalent to £180 per year)

Airport lounge access: Free, unlimited access to LoungeKey airport lounges. Guests and children can join for £24 per person per visit.

Benefits include:

• 0.5% cashback (up to £15 a month) on all purchases.
• 0% interest on purchases and balance transfers for 18 months with no balance transfer fee.
• 40% off Santander Travel Insurance when you apply online.
• Complimentary access to over 1,400 airport lounges worldwide with LoungeKey for cardholders. Guests and children can join you in the lounge for £24 per person, per visit.
• No foreign transaction fee if the purchase is made using the local currency on your credit card.

Santander Select or Santander Private banking customers may qualify for £90 cashback when opening and using a Santander World Elite Mastercard credit card during the offer period, starting 26 March 2026. This offer can be withdrawn at any time.

Barclaycard Avios Plus Card

Representative 80.1% APR (variable)

Fee: £20 per month (equating to £240 per year)

Airport lounge access: Discounted rate of £24 per lounge pass, per person

Benefits include:

• New Barclaycard customers can get 25,000 bonus Avios points if they spend £3,000 in the first three months.
• Earn 1.5 Avios for every £1 spent on eligible purchases.
• The choice between a British Airways cabin upgrade voucher to use on an Avios Reward Flight booking or 7,000 bonus Avios, if you spend £10,000 on your card within 12 months.
• Discounted rate for airport lounges via Dragonpass – access over 1,000 airport lounges worldwide at a discounted rate of £24 per lounge pass, per person.
• If you open the Barclaycard Avios Plus card for £20 per month and turn on Barclays Avios Rewards as a Premier customer for £12 a month, the bank will give you £5 cashback into your current account each month.

HSBC Premier World Elite Mastercard

This card is available for HSBC Premier customers only.

Representative 100.2% APR (variable)

Fee: £290 per year

Airport lounge access: Free, unlimited access for the main cardholder and any additional cardholders

Benefits include:

• Earn 40,000 reward points when you spend £2,000 on your card in the first 90 days of card membership.
• Earn three reward points for every £1 of eligible spending in sterling.
• Earn four reward points for every £1 of eligible spending in another currency (fees apply). Reward points can be converted into certain airline miles (including British Airways, Emirates, Etihad, Qatar Airways and Air India) or swapped for use at participating hotels, retailers (including M&S and Amazon) and charity donations.
• Get unlimited access (main cardholder and any additional cardholders) to more than 1,700 airport lounges worldwide with Priority Pass.
• Airport security fast track at participating airports worldwide via Mastercard Travel Experiences powered by Dragonpass for the main cardholder and any additional cardholders.

HSBC Premier Credit Card

This card is exclusively available for HSBC Premier customers.

Representative 29.9% APR (variable)

Fee: No annual fee

Airport lounge access: Priority Pass membership – airport lounge access costs £24 per person, per visit, subject to availability.

Benefits include:

• Earn 30,000 reward points when you spend £2,000 on your card in the first 90 days of card membership. This offer ends on 23 July 2026. The card previously offered 20,000 reward points when you spent £2,000 on the card in the 90-day initial period.
• Earn 1.5 reward points for every £1 spent on purchases in sterling.
• Earn two reward points for every £1 spent on purchases in another currency (a non-sterling transaction fee of 2.99% will apply). Reward points can be converted into airline miles or swapped for hotel stays, shopping vouchers and more.
• Access to airport lounges with Priority Pass – access more than 1,700 airport lounges worldwide for £24 per person per visit, subject to availability.

Lloyds Bank World Elite Mastercard/Halifax World Elite Mastercard

Representative 55% APR (variable)

Fee: £15 per month account fee (equivalent to £180 per year)

Airport lounge access: Unlimited complimentary access to 1,300 lounges via Priority Pass, subject to availability, for cardholders and an additional cardholder. Guests can join for a £24 per visit fee.

Benefits include:

• 0.5% cashback on purchases totalling up to and including £15,000 in each anniversary year from the account opening.
• 1% cashback on purchases totalling over £15,000 in each anniversary year from account opening.
• Unlimited complimentary access to more than 1,300 airport lounges worldwide via Priority Pass, subject to availability. Extra guests will be charged a fee of £24 per visit.
• Enjoy airport security fast track at participating airports, via Dragonpass. A fee is charged for extra guests.
• No foreign exchange fees on card purchases.

In the world of banking, transformative companies are rare. But when they come along, they can have a big impact. Nu Holdings is one such business. It is upending the status quo in Latin America, tackling a banking sector that is dominated by a cartel of big banks that treat customers poorly. Nu is succeeding through a fanatical dedication to the customer and a relentless drive for efficiency.

Known simply to its 127 million customers as Nu, the firm is an unlikely story of an outsider successfully taking on a banking oligopoly and in the process creating a blueprint for the future of financial services across Latin America, and one day potentially the world. To appreciate Nu's achievement, one must understand the environment it entered.

For decades, Brazilian banks were known for treating customers as little more than a source from which to extract money. Almost a third of the adult population had no bank account at all. In mid-20th century Brazil, protectionist policies enabled a group of five politically connected banks to grow and control nearly 90% of the market. This bred a culture of lazy profitability. Brazilian incumbents maintained net interest margins of around 14% (a key profitability metric in banking), compared with roughly 3% in the US and Europe. They charged astronomical fees and interest rates on credit cards that frequently ran into hundreds of percent per annum. Opening an account was famously arduous and could take days. The atmosphere in branches, marked by armed guards and suspicion, acted as a filter that excluded many. By 2013, 60 million adults were unbanked.

The spark that created Nu came in 2012 from David Velez, a Colombian-born investment professional who had moved to São Paulo to lead the Latin American office of venture-capital firm Sequoia. His attempt to open a local bank account took months. When Sequoia withdrew from Brazil because of a perceived lack of investable technology talent, Velez saw his opening. He realised that the lazy, high-cost models of incumbent banks was a vulnerability to attack.

Velez assembled a small founding team: himself as the strategist, Cristina Junqueira (an experienced banker who knew the Brazilian banking 2022 2023 2024 2025 2026 system well), and Edward Wible (an American engineer who built the bank's technology from scratch). This was perhaps Nu's greatest advantage because many big, old banks run off decades-old software systems that make innovation and cost-cutting difficult. Building from the ground up using cutting-edge technology gave Nu an immense lead that others couldn't match.

For a traditional Brazilian bank, it costs between $12 and $15 per month to service a customer; Nu's cost is about $0.90. This saving is its bedrock. It allows it profitably to serve the unbanked that the incumbents had deemed too expensive to touch.

Nu's radical approach

Nu's first product was a simple, no-fee credit card that rapidly became very popular largely through word of mouth and its radical attitude to customer satisfaction. In a market where banking was synonymous with abuse, Nu's Net Promoter Score (NPS) soared into the 90s (an NPS can run from -100 to +100, so a score in the 90s is incredibly high). The company didn't just provide a service; it also built a movement based on fairness and servicing the part of the population that had been neglected. This organic growth meant it could acquire customers for a fraction of the marketing spend of competitors.

The sceptics' biggest concern was credit risk. Nu's solution was the “low and grow” model. It would issue micro-limits, sometimes as low as £10, to unknown borrowers. This was effectively a test-and-learn strategy. By observing real-time payment behaviour and smartphone data, Nu could predict defaults more accurately than traditional credit bureaux can. As of late 2025, Nu's return on equity (ROE) reached a record 31% (an enormously high number in banking, where the ROE is often closer to about 12%), proving that it could lend to the underserved more profitably than the incumbents could lend to the elite.

How Nu is exporting its model

The Nu model is now being exported. Mexico and Colombia represent the next chapters of the story. In Mexico, where cash is still king and banking penetration is even lower than it is in Brazil, Nu reached 13 million customers in two years. By partnering with retail giant OXXO (which has over 23,000 locations across Mexico) to allow for physical cash deposits, it has overcome its lack of a branch network.

Early this year, Nu received conditional approval for a US National Bank charter in an attempt to move towards the cash remittance corridor between North and South America. Nu is no longer just a new Brazilian bank; it is spreading across the continent.

Nu's shares are not cheap in a traditional sense. Trading at more than seven times book value, they command a significant premium over banks such as JPMorgan, which typically trades at around 1.2 to 2.5 times. But comparing Nu to a traditional bank is a category error. Given its efficiency and revenue growth, it functions more like a high-margin software business. The quality of the management team and the structural cost advantage make it a best-in-class operator. At current levels, the stock is perhaps priced for perfection, reflecting its high-octane growth trajectory. For the patient investor, however, any significant pullback in the share price would represent an enticing entry point into what is arguably the most efficient banking machine on the planet.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

British Airways has launched new Avios-only flights, offering more opportunities to redeem your Avios points.

Avios is a major loyalty programme with airlines British Airways, Iberia and Aer Lingus all signed up. Under the scheme, you receive points when buying flights, spending with certain retailers or if you’ve got an affiliated credit card. These points can then be redeemed on flights, holiday extras and more.

A popular way to spend Avios points is via reward flights. On these flights, you pay with your Avios points, as well as a cash amount to cover taxes, fees and carrier charges.

British Airways introduced Avios-only flights in 2023, which members of The British Airways Club can book as reward flights. So far, there have been around 50 Avios-only flights, with destinations including the Middle East, Caribbean and Africa.

How exactly do these flights work and who is eligible? We reveal everything you need to know below.

What are Avios-only flights and who is eligible?

British Airways typically allocates a certain amount of seats on its flights to customers with Avios points to redeem as “reward flights”.

On flights to and from Heathrow and Gatwick, the airline guarantees eight seats in economy, two in premium economy and four in business class.

For flights to and from London City Airport, four reward seats are guaranteed, with two in business and two in economy.

However, since 2023, British Airways has released Avios-only flights where 100% of seats are available to British Airways Club members collecting Avios points. You can use some cash to cover the cost of these flights, but a fixed amount of Avios points has to be redeemed.

The flights are often to popular holiday destinations and run at peak times of the year, offering those with Avios points greater priority.

British Airways says Avios-only flights always sell out to customers with Avios due to their popularity.

Where do Avios-only flights travel to?

Previous Avios-only flights have gone to places across Europe, the Caribbean, Africa and the Middle East, including Cape Town, Barbados, Sharm El Sheikh, Málaga and Marrakesh. In February, British Airways announced two more Avios-only flights, from London City Airport to Madrid and Toulon Saint-Tropez.

You can find out where you can travel to on the British Airways Club website or via the Avios app.

In June, two additional flights from London Heathrow to Tenerife and Reykjavik were added for those planning to travel over the October half-term break. All Euro Traveller seats are available from just £5 and 33,500 Avios return, or £40 and 60,000 Avios return with Club Europe, including checked luggage.

More recently, a limited-edition Avios-only flight was launched for those travelling from London Heathrow to New York JFK on select dates in October 2026. Seats are available exclusively to BA Amex cardmembers, who can register their interest in booking the flight up until 24 June. It will cost £0 in every cabin and between 25,000 and 160,000 Avios for the flight, and those travelling in first class will receive a complimentary BLADE helicopter transfer between JFK and Manhattan upon arrival.

When and how can you book Avios-only flights?

British Airways announces new Avios-only flights on its website and via the Avios app. You can book one-way and return journeys on the website and via the app.

Reward flights can be booked through a British Airways Club account or by calling the contact centre on 0344 493 0747 (if calling from the UK).

Seats are sold on a first-come, first-served basis and often sell out fast.

In May, reward flight prices went up, which means flyers will have to fork out more cash for booking Avios-only flights.

For instance, a one-way trip in Club Europe from Heathrow to Rome will now cost £20 and 22,000 Avios. Before 27 May, this was £15 and 22,000 Avios, British Airways said.

Can you use American Express companion vouchers for Avios-only flights?

American Express British Airways companion vouchers can be used when booking Avios-only flights as well as regular flights. They effectively double the value of your Avios.

How does the companion voucher work?

When you book a reward flight for two people, the voucher lets you take someone with you on the same flight and in the same cabin for no extra Avios. While you won't need to use additional Avios, you will need to pay any applicable taxes, fees and charges for both travellers.

Alternatively, solo travellers can use half of the Avios required for one person, with the companion voucher. They will still need to pay the taxes, fees and charges.

Cardmembers can now also redeem their companion voucher when booking with British Airways Holidays using Avios to pay or part-pay, and get 25% Avios back. This offer is available on holiday package bookings made before 31 March 2027.

Can you cancel Avios-only flights?

Yes, Avios-only flights can be cancelled up to 24 hours before departure for a full refund, although you will be charged a £35 fee.

If you cancel within 24 hours of your outbound journey, and you’ve paid the taxes, fees and charges, these are refunded to the account used to book. For bookings made using Avios and money, the cash portion of the price isn’t refunded.

A £35 service fee is also charged if you change your flight date. If the new date costs more, you will have to use additional Avios points, and if it costs less, you will receive the difference in Avios points back.

Lloyds has returned £2 million to customers in card chargebacks that would otherwise have been lost in transactions on scam and fake websites, according to the latest data from the bank.

More than 44,000 Lloyds customers have made payments to these dodgy sites where goods failed to arrive, turned out to be poor-quality imitations, or resulted in unauthorised subscriptions.

But they managed to get their money back from the scammers following a card payment protection chargeback request, Lloyds said.

A chargeback is a reversal of a debit or credit card transaction, allowing your bank to get your money back from the retailer's bank when you haven't received what you paid for or the goods or services were not as described.

There’s no lower limit on claims – the average transaction value in the Lloyds research was £35, based on data between 1 January 2025 and 30 September 2025.

With Black Friday approaching and Christmas less than six weeks away, spending is expected to rise and Lloyds is warning people to beware of fake online shops.

Other scams to be aware of include investment scams, romance scams and AI scams.

Last year, Lloyds customers spent around £594 million on debit cards during the Black Friday weekend – an 89.6% increase compared to the typical weekend average of £314 million. This year, customers are anticipated to match that level of expenditure.

Liz Ziegler, fraud prevention director at Lloyds said: "Everyone is busy hunting for the perfect Christmas gifts and, with so many deals, offers and choices popping up online, it is easy to feel overwhelmed – particularly when you’re trying to stick to a budget and get everything done on time.

“Scammers know how to blend in on social media and the warning signs of a dodgy website or advert can be easy to miss.”

What is a dodgy website scam?

As people flock online to secure in-demand Christmas gifts, scammers are watching, ready to deploy their fake websites and trick people into handing over cash to them, rather than real retailers.

Dodgy websites and fake online shops lure people in with popular festive items, such as Labubu dolls and high-end advent calendars. Here’s how it works:

• Scammers identify the most in-demand items. Right now, that’s Labubu dolls, Jellycat toys and high-end advent calendars – alongside ‘ever-green’ Christmas and Black Friday products, like jewellery, perfume and electronics.
• They’ll set up a website, pretending to sell these popular goods. The website will carry a banner conveying urgency, like a time-limit on the sale and the goods will be heavily discounted compared to well-known shops.
• The fraudsters will then post adverts on social media for their shady sites. The adverts will also use pressure-selling tactics, encouraging people to get clicking, to avoid missing out.
• Once people enter their payment details on the website, the items never arrive or are cheap fakes.

Dodgy websites are growing

Consumers are being warned to be on their guard as the scale of these dodgy websites is growing rapidly, according to Lloyds’ research.

Between the first quarter of 2025 (January to March) and the summer, (July to September) the monthly number of these rogue merchants identified through customer disputes has doubled, rising from an average of 45 to 90. The actual number of rogue merchants is likely to be even higher, said the bank.

More recently, in October of this year, 102 ‘rogue’ merchants were spotted.

How does a bank chargeback work?

When you buy something using a debit or credit card, if the item doesn’t arrive or isn’t as described, you can make a chargeback claim to your bank.

A chargeback (otherwise known as a ‘dispute’) is a way for your bank – the one that issued the card you used to make the purchase – to reclaim money from the seller’s bank when you do not get the goods or services you paid for, including if the retailer or supplier has gone bust.

It is not a legal right like Section 75 protection – which makes a credit card provider jointly liable with the retailer if a purchase goes wrong – but a voluntary scheme agreed upon by card networks such as Visa and Mastercard.

Before starting a claim, you must first try and resolve the problem with the seller directly. If the seller ignores your request or refuses to help, the next thing to do is get in touch with your bank.

Banks can only request the return of funds after a customer has raised a chargeback and chargeback claims need to be made within 120 days of either the transaction date or the delivery date, if one is given.

If the purchase was made on a Visa card, a claim can be started after 15 days. If it’s a Mastercard, it’s a minimum of 30 days after the transaction date. The bank can then request the money back from the seller’s bank.

You can nearly always easily request a chargeback through your bank’s mobile app, which makes the process quick and straightforward.

Every chargeback report about these fake sellers also helps banks report the fake sites to the legitimate payment platforms, who can remove the scammers' ability to take payments.

Ziegler said: “If you’ve been caught out paying for something that hasn’t arrived, or it’s not what you expected, don’t worry – you might be able to get your money back.

“It is usually possible to raise a chargeback using your bank’s mobile app – we can try to get your money back from these rogue sellers and you can get on with looking forward to the festivities.”

Lloyds’ top tips for safer online shopping

• Carefully check the website address, to make sure you're on the official site before buying. A quick search in your browser is safer than clicking on a link from an ad or social media post.
• Be cautious with ads and social posts. If you see a deal on social media, don’t click straight through. Instead, search for the retailer yourself to make sure it’s legit.
• If it looks too good to be true, it probably is. Big discounts on popular items can be a red flag.
• Watch out for the small print, especially on “free” offers. Some come with hidden subscriptions or extra charges.
• Check reviews. Look for independent reviews before you buy as these can help you spot dodgy sellers.
• Report anything suspicious. If something goes wrong, let your bank know straight away. It could help you get your money back and protect others too.

In 2024, Jared Isaacman became the first non-professional astronaut to walk in space. Within months, the daring payments billionaire – a close ally of Elon Musk – leapt closer to another personal goal by becoming Donald Trump’s top pick to head US space agency NASA. He was briefly out of favour when Trump and Musk fell out, but the stars have realigned for Isaacman. Trump has renominated Isaacman, saying he’s the ideal candidate to drive the agency’s “mission of discovery and inspiration”.

Within NASA, there are hopes that the appointment will draw a line under “weeks of drama” over who will lead the agency, says Bloomberg. Isaacman, 42 – who founded his company Shift4 at just 16 – is a political neophyte. But Trump highlighted his business achievements; and there’s no doubting his passion for extraterrestrial travel and derring-do, says Time. A former stunt pilot, he bankrolled last year’s three-day Polaris Dawn space mission, reportedly paying $200 million to Musk for all four seats aboard the SpaceX craft. Isaacman has tied himself closely to SpaceX since 2021, says Bloomberg, spending undisclosed sums on multiple missions and helping fund research and development. “A staunch supporter of the commercial space industry,” he’s expected to increase NASA’s use of private companies if confirmed for the top job. Conflict of interest is a worry.

“Dropping out of high school isn’t usually a good idea, but it sure paid off for one New Jersey kid,” noted a 2011 profile in Business Jet Traveler charting Isaacman’s meteoric rise. His parents, who earned a precarious living, worried when the self-described “horrible student” quit school, but Isaacman already had a business plan. During school holidays, he’d done IT work for Merchant Services Inc – “early e-commerce stuff” – and got a feel for the credit-card industry where he saw “a lot of opportunity for improvement”. In 1999, he founded United Bank Card from his parents’ basement: “Assets were limited to $10,000 in stock certificates that he’d received from his grandfather.”

The young firm flourished. Isaacman’s father, Don, who joined as a salesman, later said “he was within a year of losing his house” when the company (rebranded Shift4 in 2017) started, crediting his offspring with “saving the family”. There was no silver bullet, says Isaacman: no “one technology or patent”. He simply focused on streamlining the then labyrinthine business of processing credit cards, moving quickly into new technologies and often offering customers (typically restaurants and shops) free kit in order to win their accounts. Within a few years, the firm made Inc magazine’s annual list of America’s fastest-growing small businesses and Isaacman was runner-up to Mark Zuckerberg in the list of “30 top entrepreneurs under 30”. By 2011, he was running one of the US’s largest payment processors.

Can Jared Isaacman lead NASA?

Success gave Isaacman free rein to indulge his passion for flying. An avid collector of vintage planes, he became an aerobatics whizz, performing at air-shows. In 2009, says Fortune, he “set a world record for circumnavigating the globe”. Isaacman parlayed his love of aviation into a business, founding Draken International, a defence firm specialising in military aircraft and training pilots. In 2019, he sold a majority stake to Blackstone, launching himself into billionaire status. Isaacman is “a thrill seeker”, says Forbes. But that’s partly “to unwind from the non-stop… 80-plus-hour weeks” he works. NASA's staff can expect an intense regime of slashed meetings, cost-cutting and liberation from “inefficiencies”. Isaacman has said he wants to “foster a culture of urgent execution” in his quest to kick-start America’s new space age. “NASA’s Game of Thrones is finally over,” observed Politico. There’s quite a firebrand in the hotseat.

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Millions of shoppers could each get up to £70 compensation following a long-running legal case against Mastercard – and crucially, you don’t need to own a Mastercard to claim.

Last month, a tribunal approved a settlement in a lawsuit against Mastercard regarding historic fees levied on businesses by the card provider.

Walter Merricks, a former financial ombudsman, argued that customers were charged higher prices after fees were wrongly levied on transactions during a 15-year period between 1992 and 2008, and should be paid compensation.

It’s not necessary to have ever had a Mastercard debit card or credit card to be eligible for the payout.

Martyn James, a consumer expert, said: “The £200 million settlement against Mastercard makes it the largest settlement of a group claim in the UK. It’s estimated that 44 million people might be in line for a payout as a direct result of this legal action.”

It had been expected that the payments would be made in the coming months, however a fresh legal challenge means they will now be delayed.

We explain who's eligible, how to register for updates, how the claims process is likely to work, and how much you could get.

Why has Mastercard been ordered to pay compensation?

Whenever you buy something using a debit card or credit card, there are a series of transactions to get your money into the retailer’s bank account.

Card networks, like Mastercard and Visa, act as middlemen between customers, banks, retailers and any other organisations taking card payments. In return, the networks take a small fee on each purchase.

The legal claim against Mastercard centred around these card processing fees, alleging that the charges were too high, making it more expensive for companies to accept card payments.

Retailers and other organisations may have then passed on these increased costs to consumers via higher prices for goods and services. This means everyone – regardless of whether you’re paying with another type of card such as Visa or Amex, or even just cash – was potentially affected.

James points out that back in the mid-2000s, Mastercard was ordered to reduce its fees, also known as “interchange fees”, by the European Commission. “However, by that point, millions of people had been potentially overcharged.

“As a consequence, a class action – or group action – was launched on behalf of all affected people by Merricks. The original claim sought £10 billion in compensation, with an estimated 44 million people affected,” he notes.

Commenting on the outcome, Merricks said the settlement “represents a fair and just outcome for UK consumers”. He added: "Virtually all UK consumers had lost out for long periods by paying higher prices than they should have done as retailers passed on those costs.”

Who’s eligible to claim the Mastercard compensation?

You'll be able to claim the compensation if you meet all five criteria:

1. You lived in the UK for at least three months in a row between 1997 and 2008. For England, Northern Ireland and Wales, the exact period is 20 June 1997 and 21 June 2008. For Scotland, it's 22 May 1992 to 21 June 2008.
2. You were aged 16 or over for all of those three months. This means anyone born on or after 22 March 1992 can't claim.
3. During the same period, you bought goods or services from a firm selling in the UK. This does not need to have been with a Mastercard.
4. You lived in the UK on 6 September 2016.
5. You haven't previously opted out of the legal case.

How do I claim?

According to MastercardConsumerClaim.co.uk, which is being run by legal services firm Epiq to handle the claims process, information on how to claim will be posted on the website "in the coming weeks".

However, the process is likely to be delayed due to a legal twist – more on that later in the article.

For now, you can register on the website to be notified about when the online claim form becomes available.

It is free to make a claim, and once the online form is available, you will have 90 days to make your claim.

MastercardConsumerClaim.co.uk says: “You will not need to submit any proof to make a claim, but you will need to self-certify that you are entitled to make a claim and provide your name, date of birth, postal and email addresses, telephone number and banking details into which your share of the settlement sum is to be paid.”

It’s possible to claim on behalf of a deceased or incapacitated person if they met the five criteria mentioned above.

How much money could I get?

If the expected number of people claim the Mastercard compensation – roughly 2.2 million based on professional estimates – each person will get £45. If more people claim, the individual payout will decrease.

If fewer people than expected claim, the maximum each person will get is £70, with any remaining funds going to charity The Access to Justice Foundation.

When will I get the money?

Payments had been expected to be made by the end of the year. However, they will now be delayed due to a legal challenge.

A company called Innsworth, which helped fund the case, is trying to challenge how the £200 million settlement is split.

The firm says the tribunal that approved the settlement "made a series of errors in its judgment" when deciding how much of the £200 million should go to Innsworth. So it's filed a judicial review to try and get a bigger cut.

As a result, the launch of the online claims portal will be delayed – which means payouts will be delayed too. If the case is successful and Innsworth gets more of the £200 million, this could reduce the amount of money you end up getting.

Chase UK has launched its first ever credit card, as it broadens its product range for UK customers.

The digital bank is already popular for its current account that offers cashback, plus competitive savings accounts. Earlier this month, Chase introduced a bonus offer, giving new customers the opportunity to earn 5% interest on easy access savings for up to one year.

However, the bank caused an upset in April when it overhauled its cashback deal, meaning current account customers can only earn 1% cashback in certain places, and it’s restricted to purchases made in the UK. Previously, cashback was paid on any spending in the UK or worldwide.

It has now unveiled a credit card for all Chase customers, after quietly testing it with more than 25,000 existing Chase customers invited to use the card since November, following a pilot with the bank's employees.

Last month, MoneyWeek exclusively revealed that the credit card would be rolled out to all customers in June.

Mark Powys, managing director for daily banking and borrowing at Chase, comments: "Designed specifically to meet the borrowing needs of our customers, the Chase credit card offers a seamless digital experience and a range of features to help people effortlessly manage their money.”

He adds that the card “could be a great option for using when travelling abroad, especially as people get ready for the summer holidays”.

Customers will be able to apply for the card in the Chase app, and also see their credit score for free.

So, let’s delve into the details and see if the credit card could be a good option for Chase customers.

Chase's new credit card for the UK market

This is the first credit card for the UK market from JP Morgan-backed digital bank Chase. Previously, it only offered a current account and a savings account, plus you can also invest with Nutmeg, part of the JPMorgan family, via the Chase app.

You need to be an existing Chase customer to apply for the card. The credit card includes 0% interest on purchases for up to 15 months, and no annual fees. The APR is 24.9%.

There are also no foreign exchange fees, and competitive exchange rates worldwide.

Customers can check their eligibility, apply, start using, and manage the card through the digital banking app.

App features include real-time balance updates, instant notifications on purchases, and tools such as the ability to instantly freeze and unfreeze their physical and virtual card, turn on and off certain spending features (such as contactless), and spend tracking.

Like Chase's debit card, the credit card is numberless – card details are stored in the app so only the customer has access to them.

In addition to the new credit card, Chase customers can see their credit score, for free, inside the app. According to the bank, this is designed to allow users to view, monitor and see how they can improve their credit score.

Is the Chase credit card any good?

The Chase credit card could be a good option if you’re planning to travel abroad, as there are no fees on spending overseas.

However, there are other credit cards that already offer this, such as Barclaycard Rewards Visa Credit Card, MBNA Cashback Visa Credit Card and Virgin Money Everyday Cashback Mastercard Credit Card.

This trio also pays cashback to customers on most UK and overseas spending, which the Chase credit card doesn’t do.

So, if you’re looking for a no-fee travel credit card that rewards you with some cashback – perhaps because you’re planning to spend a lot of money abroad – there are better options than the Chase card.

The interest-free purchases for up to 15 months is an attractive feature, especially for those wanting to buy expensive items and spread the cost of paying it off.

Again, there are cards offering a better deal, for example some credit cards offer 0% purchases for up to 20, or even 25, months.

If you’re already a Chase customer and you’re looking for a good all-rounder credit card that will give you a period of interest-free spending, plus no fees when you go on holiday, this card looks like a good option.

This is especially the case if you like to manage your money in an app, and find it easier to have financial products, like your current account and credit card, with the same provider.

How do I apply for the Chase credit card?

You need to be 18 or over, a UK resident, and have a Chase current account to apply for the credit card.

You can check your eligibility and apply via the app.

Customers who are approved for the credit card can start using it immediately via their digital wallet without needing to wait for the physical card to arrive.

Will Chase launch more products?

In the US, Chase has a range of credit cards for customers to choose from, including a popular “Sapphire” card. For a $95 annual fee, customers can get “premium dining & travel rewards”. For example, if they earn 60,000 points, that’s worth $750 towards travel when redeemed through Chase Travel.

Chase is understood to be planning more product launches in the third quarter of this year, which will expand its proposition. However, there are no plans to bring the Sapphire card to the UK’s shores in 2025.

Chase has more than two million UK customers, all of whom have a current account with the bank.

A companion voucher is an exclusive benefit offered to American Express British Airways (BA) credit card customers.

The voucher lets you boost the power of your Avios points when you book a BA reward flight.

A BA reward flight means a flight booked with Avios as the main payment method – depending on how many points you have, your flight could cost you as little as £1 in cash.

Avios points and the BA companion voucher are different to British Airways tier points, which we look at in a separate guide.

What is a British Airways American Express companion voucher?

BA Amex companion vouchers allow cardmembers to effectively double the power of Avios points when purchasing reward flights.

This can be done in one of two ways:

• Travelling with a companion: You can use a companion voucher to take someone with you on the same flight and in the same cabin without spending any extra points.
• Travelling alone: You can use a companion voucher to discount the Avios price of your reward flight by 50%.

If you choose to bring a companion along by using a voucher, you will not need to spend any additional Avios points, but you will need to pay any applicable taxes and other flight charges.

Customers travelling with a companion who have multiple vouchers can use a maximum of two of the same type on one reward flight booking. This amounts to a maximum of four passengers (excluding infants under two years old).

Solo travellers can only use a maximum of one voucher per booking.

Use a companion voucher with BA Holidays

British Airways Amex card holders who book with British Airways Holidays using Avios points (either full or part payment) can now redeem their companion voucher on the package, to get 25% of the Avios back.

The offer is available on holiday package bookings made before 31 March 2027.

British Airways American Express card members can get up to 50,000 Avios back per booking, while British Airways American Express Premium Plus cardmembers can get up to 200,000 Avios back per booking.

In order to redeem the voucher, you will have to submit an online form within 72 hours of booking via BA Holidays.

25% of the Avios used will then be credited back to your BA account. For instance, if you put 40,000 Avios towards a holiday in Rome, 10,000 would be returned to your account.

When using a voucher on a reward flight, customers must fly on the outbound flight before the voucher expires. However, with this offer, the voucher only needs to be valid at the time of booking – letting customers travel on their BA holiday after the companion voucher expires.

How do you get a BA Amex companion voucher?

To earn a BA Amex companion voucher, you must spend £15,000 on your participating BA Amex card in a given year.

The current cards eligible for companion vouchers are the British Airways American Express Credit Card and the British Airways American Express Premium Plus Card.

You are only able to earn one companion voucher per year.

Companion vouchers earned with the British Airways American Express Credit Card will be eligible for 12 months after they are earned.

Meanwhile, companion vouchers earned with the British Airways American Express Premium Plus Card will be eligible for 24 months after they are earned.

Note that you cannot earn a companion voucher if you spend the required amount on a different Amex card.

For a full rundown of all of Amex’s available cards, read ‘Which is the best American Express credit card?’.

What are the different types of companion vouchers?

The type of companion voucher you have depends on when and how you earned it.

Companion vouchers earned through the British Airways American Express Credit Card after 1 September 2021 are displayed on your British Airways Club account as 'BA American Express Credit Card Companion Voucher'.

Meanwhile, companion vouchers earned through the British Airways American Express Premium Plus Card after 1 September 2021 will be displayed as ‘BA American Express Premium Plus Companion Voucher'.

Finally, if you earned your companion vouchers before 1 September 2021, they will be displayed in your account as 'BA American Express Companion Voucher'. These have different terms, validity, and benefits than the others. BA says more information about these can be found at ba.com/amex-companion.

You cannot combine two different types of companion vouchers in one booking.

How to redeem a BA Amex companion voucher

Once you have spent the required £15,000 on your eligible BA Amex card, you will be able to see your voucher displayed in your British Airways Club account.

You can then redeem it by going to ba.com/bookwithavios and signing in. You can then select your voucher at the top of the page and choose your destination and dates.

You can then look through the available flights, choose them, and book your tickets.

If the companion voucher is used on a reward flight, the outbound flight would need to be taken within the eligibility period, before the voucher expires.

American Express (Amex) credit card customers are being offered a new tool to split payments on purchases.

As with any credit card, users can make a purchase and then pay the bill at the end of the month, but Amex has unveiled a new tool called Plan It, which lets users select an instalment plan instead for parts or all of their latest statement.

It comes amid the rising popularity of buy-now-pay-later (BNPL) schemes, which let customers spread the cost of a purchase and pay it off interest-free in equal instalments as long as the payment is made on time.

The Amex offer isn’t a BNPL scheme and is arguably less risky as you are using a regulated credit card provider and are able to complain to the Financial Ombudsman Service if things go wrong.

Amex argues that Plan It gives customers more flexibility in how they repay their credit card bill.

There are some limits to watch out for though.

What is the Amex Plan It tool?

The Plan It tool offers a different way for Amex customers to pay their credit card bill.

A credit card is an effective way to make purchases and in the case of Amex you could also earn cashback or Avios points.

As long as the bill is paid off each month there will be no interest charged.

But Amex is offering a different way to payoff some of a credit card bill.

Amex customers will be able to select a transaction or an amount from their most recent statement to put into an instalment plan for three, six or 12 months.

How does Plan It work?

Plan It is available on most major Amex credit cards such as its Platinum Cashback or British Airways American Express Credit Card but not charge cards.

Once your statement is ready, you will be able to select a transaction or a series of payments to put into the Plan It scheme and spread them over a three, six or 12-month time period in return for a monthly fee.

This can be setup in your Amex online account or through the app.

The amount must be a minimum of £100 and can be worth up to a maximum of 85% of the statement balance.

You still earn Avios, membership rewards or cashback if your card is eligible.

The Plan It instalment plan is automatically included in your minimum due payment each month. If a customer does not pay their monthly minimum due payment, in full, for two consecutive statements, any instalment plans on the account will be cancelled and it will be added to the main balance. Late fees may also be charged.

How much does Plan It cost?

The monthly fee for Plan It will depend on how much is in the plan and its length.

 The longer the instalment plan, the more you will pay.

MoneyWeek understands that the fees will be comparable to the interest a cardmember would have paid if they had carried the same balance on their account, without the instalment plan.

Is Plan It worth it?

It is always positive to have more choice when it comes to repaying any type of bill.

Plan It offers Amex customers more flexibility and transparency on how much you will pay for the plan.

But it involves an extra level of administration as you need to make sure you keep on top of the instalment repayments as well as the rest of your credit card balance.

That may work for those who are good at budgeting and keeping on top of various different bills.

But paying off your credit card in full each month is often the best way to manage you account to avoid interest being added.

If you fail to keep up with your instalment payments then just like any credit card bill, you risk late payment fees and could end up having an arrears or default added to your credit report.

Some may question if a credit card is right for you if you also need to further spread the payments on your credit card bill as you risk racking up further interest being added.

If you have large credit card debts, it may even be worth considering a balance transfer credit card where some offer interest-free repayment period.

American Express credit cards – commonly known as Amex cards – are a popular choice among customers looking for extra rewards when spending money.

These cards come in all sorts of forms, from cashback credit cards to cards which reward you with points. Some are free to get, while others have a fee attached.

If you want to clear debt, you may be better off using a 0% balance transfer credit card. For those planning a holiday, take a look at our guide on the best cards for travel abroad.

If you’re seeking maximum value on your day-to-day spending and travel perks, and will pay off the balance due in full each month, a card which offers rewards might be a good option.

Amex offers a number of rewards credit cards – although these cards might not be as widely accepted as Mastercard and Visa cards.

The best American Express credit cards

There isn’t necessarily a ‘best’ Amex credit card, as different options may or may not suit people’s spending habits.

For instance, someone who doesn’t travel abroad often might not get as much use out of an Amex card that offers Avios points, compared to a frequent flyer.

Below, we list some of the most popular credit cards for different uses, such as no annual fee, cashback, rewards and travel perks.

You won’t be eligible for any “welcome bonus” offers if you have held an Amex card in the past 24 months. See how British Airways Amex companion vouchers work in our guide.

The best Amex card with no annual fee

If you’re just dipping your toes into the world of credit cards or Amex, the British Airways American Express Credit Card may be a good option. It doesn’t have an annual fee, and it lets you collect Avios on any purchases you make, giving you more value for your money.

Some of its perks include:

• 5,000 bonus Avios when you spend £2,000 in your first three months of cardmembership.
• One Avios for every £1 spent on purchases.
• 1,000 Avios when you add the first Supplementary Card – an extra card issued to a family member or friend – to your account.
• Get a companion voucher when you spend £15,000 each cardmembership year.

Eligibility:

• Earn at least £15,000 per year

The best Amex card for cashback

Out of the Amex range, the American Express Cashback Everyday Credit Card gives the most cashback without having to pay any annual fees.

Some of its perks include:

• 5% cashback on your purchases (up to £125) for the first three months of your cardmembership.
• After the bonus period, earn 1% cashback on spending above £10,000, which falls to 0.5% if you spend less than £10,000.
• There is no limit on how much cashback you can earn in a year, provided you spend a minimum of £3,000.

Eligibility:

• Earn at least £15,000 per year

The best Amex card for rewards

The American Express Preferred Rewards Credit Card comes with a host of rewards and points that can help offset the cost of the card – a £195 fee that comes in after a year.

Some of its perks include:

• Earn 20,000 bonus Membership Rewards points when you spend £3,000 in the first three months. You don’t qualify if you’ve already had an Amex card in the past 24 months.
• Earn three points for every £1 spent on Amex Travel and two points for every £1 spent directly with airlines
• Get £10 back per month on Deliveroo, which could equate to £120 back a year
• Four complimentary Priority Pass airport lounge passes a year at up to 1,300 lounges at airports around the world
• Other benefits include US $100 hotel credit when you book two or more nights with The Hotel Collection, which can go towards spa purchases or food and beverage, late check-out, room upgrades and more.

Eligibility:

• Earn at least £20,000 per year

You can use points towards purchases made on your card, whether you’re going on holiday or dining out. For instance, 40,000 points means up to £200 in gift cards.

We look at other credit cards offering airport lounge access in a separate guide.

The best Amex card for travel

The American Express Platinum Credit Card comes with a substantial fee of £650 per year, but depending on how you use the travel benefits offered, it may be worth getting.

Some of its perks include:

• Earn 50,000 bonus Membership Rewards points when you spend £6,000 in the first three months. You don’t qualify if you’ve already had an Amex in the past 24 months.
• Get £250 in travel credit, which can be used on a single prepaid purchase of flights, hotels and car hire. It’s valid for 12 months from the date of issue.
• Get up to £200 in dining credit to spend in the UK, and another £200 abroad for participating restaurants
• Earn 2x points on Amex Travel for every £1 spent.
• Earn one point for every £1 spent
• Complimentary access to over 1,400 lounges at airports around the world
• Travel rewards, including US $100 hotel credit, travel insurance, car rental and complimentary hotel benefits

Eligibility:

• Earn at least £35,000 per year

If you’re unsure whether this card works for you, you may consider testing it out for a year. The sign-up bonus of 75,000 Membership Rewards points (worth £375) and £400 annual dining credit in the UK and abroad could work out to be more than the fee for the first year.

The best Amex card for frequent flyers

An alternative option is the British Airways American Express Premium Plus Credit Card, which offers extra Avios points for a limited time. This account has a £300 annual fee and a representative APR of 135.7% variable.

Some of its perks include:

• Welcome bonus of 30,000 bonus Avios when you spend £6,000 in your first three months of cardmembership.
• Get a companion voucher in any cabin – including business and first class flights – when you spend £15,000 in a year.
• Earn 3x Avios with British Airways or BA Holidays for every £1 spent
• Earn 1.5x Avios for every £1 spent on purchases.

Eligibility:

• Earn at least £35,000 per year

We look at the best time to book flights for savvy travellers who want the best value for money on their holidays.

Which is the best American Express Avios credit card for me?

The right card will ultimately come down to your spending habits. The more you spend on the card, the better value the Premium Plus card becomes, since the greater gain of Avios points will mitigate the annual fee. It’s also worth bearing in mind that other credit cards offer Avios rewards, such as those from Barclaycard, while you can also boost your Avios balance by opting for specific bank accounts.

Other American Express credit cards to consider

American Express offers a handful of other credit cards tied to specific reward schemes or brands. If you are a regular customer of these firms, then you may be better off considering one of these cards.

For example, the American Express Nectar Credit Card allows you to earn two Nectar points for every £1 spent (rising to three points on spending with Nectar partner firms). You can bag a bonus of 20,000 further points if you spend £2,000 in the first three months with the card.

There’s also the Marriott Bonvoy American Express Credit Card, which offers two points on each £1 you spend, moving to six points when you spend on eligible Marriott properties. You get an automatic silver status upgrade and receive 15 Elite Night Credits towards the hotel’s loyalty programme. You can also earn an introductory bonus of 20,000 points when you spend £3,000 in the first three months. There’s an annual fee of £95 to consider, though.

Get the most from your American Express card

Whichever American Express card you go for, if you want to make the most of the ability to earn rewards, you’ll need to put as much of your usual spending each month as possible on the card.

This can be a little trickier with American Express cards since they are not accepted by all retailers, but enough retailers do to allow you to put a significant portion of your spending on the card and maximise your returns.

However, it’s important that you do not view this as a reason to spend more than usual each month. Rewards credit cards only benefit shoppers who can clear their balance in full every month; otherwise, the interest charged on any outstanding balance will quickly eat into the value of the rewards you’ve earned.

A new time limit could be introduced on consumer complaints as part of an overhaul of financial regulations.

The Treasury is consulting on changes to how complaints are handled by the Financial Ombudsman Service (FOS), particularly when major issues are uncovered.

It comes as chancellor Rachel Reeves used her Mansion House speech to unveil Leeds Reforms that focus on reducing regulatory red tape.

The FOS has previously warned of a "concerning" rise in complaints made about financial services and the reforms aim to give it more flexibility.

Sarah Pritchard, deputy chief executive at the FCA, said: “When something goes wrong, it is right that people are compensated.

“But a lack of certainty in the financial redress system can hold back investment and innovation. Our changes will help create a system that is more predictable for firms and gives consumers quick and fair compensation where they’re owed it, supporting UK growth.”

How are redress rules changing?

Complaints about financial products are at record levels and concerns about motor finance commission, fraud and scams and credit cards are at new highs, according to the FOS.

This can slow down the time it takes to deal with issues and regulators want to instead identify problems before they become a problem.

The Treasury is proposing an absolute time limit in legislation that will require complaints to be brought within 10 years of the conduct complained of.

It said: “This will avoid the risk of the FOS having to deal with a high number of historic cases, which can be challenging to resolve quickly and effectively.”

The Treasury also wants to give the FCA more powers to investigate mass redress events without wider consultation and let the redress scheme dismiss collective groups of complaints by referring them to the FCA for regulatory action instead.

This will give the FOS time to deal with other issues.

The level of compensation may also change.

The FOS said it will be changing the interest rate it applies to some awards it directs businesses to pay, from 8% to track the Bank of England’s base (average) rate +1%. Awards will still reflect any actual losses the consumer has suffered, the FOS said.

James Dipple-Johnstone, interim chief ombudsman at the Financial Ombudsman Service, added: “These reforms mark a significant step in modernising the UK's redress system, making it more agile and responsive and a much better fit for today's economy. Our changes will bring consistency and predictability for businesses and consumers, enabling us to better focus on our core purpose – resolving individual disputes quickly and with minimum formality.”

The consultation closes on 8 October 2025.

How to complain about financial providers

The FOS should be the last resort if you have a complaint about a regulated financial product or service.

The first step is to complain to your provider in writing either by email or letter to their complaints department. You can only complain about regulated products provided by firms approved by the Financial Conduct Authority (FCA). That includes residential mortgages, insurance products, pensions and investments, although you can’t complain about stock market performance.

“Tell them what happened and when, and ask them to put things right,” says the FCA. Providers need to give a response within eight weeks on if your complaint is successful, how it will be resolved or why they need more time to investigate.

If you are unhappy with the decision or have not had a response after eight weeks, you can then complain to FOS. Complaint forms can be downloaded from the FOS website.

It will consider your issues and contact the financial firm to get their side before making a decision whether to uphold the complaint and award compensation. The latest FOS data shows it upheld 37% of complaints in the first quarter of the 2024/25 financial year.

There are no costs to complain to your financial provider or to the FOS. You don't need to enlist the services of a professional representative to complain. Claims management companies can also help with complaints on a no-win-no-fee basis but could take a large chunk of any compensation you receive.

Another option if you are unhappy with complaining to your financial provider or the FOS is to take legal action. But this will cost you as you may need to pay for legal advice and cover court fees.

Credit card customers are being hit with record-high APRs and shorter 0% balance transfer deals.

Tesco Bank recently reduced its market-leading 0% balance transfer offer from 29 months down to 27 months. Last month, Virgin Money cut its 28-month 0% balance transfer deal to 26 months.

It means the longest balance transfer card is now Barclaycard (28 months), according to Moneyfacts. A year ago, the best deal was 30 months.

"Interest-free offers have unfortunately worsened in terms of the time given to borrowers to pay back their debt before interest applies," comments Rachel Springall, finance expert at Moneyfactscompare.co.uk.

The average balance transfer deal for someone trying to consolidate their credit card debt is 17 months, down from 20 months two years ago.

Meanwhile, the average purchase APR (annual percentage rate) on a credit card is at a record high of 35.6%.

This is despite interest rates being lowered at the start of the month - the first cut since 2020. The Bank of England base rate is now at 5%.

Oliver Crawford from the consumer group Fairer Finance notes: “We always encourage borrowers to repay their transferred debt entirely during the 0% period, otherwise they'll face a much higher APR.”  

Fairer Finance is calling on credit card providers to improve their communications so customers understand exactly how balance transfer cards work, and don’t get caught out by small print. For example, by making it as clear as possible that customers can potentially lose their 0% period entirely if they miss a repayment.

According to the consumer group, providers should also do more to explain that 0% balance transfer cards generally aren't suitable for making purchases or cash withdrawals, because that spending will usually accrue interest until the entire balance transfer is cleared.

Should I use a 0% balance transfer credit card?

An interest-free balance transfer card can be a useful way to slash the cost of existing credit card debt. It can save you hundreds of pounds in interest payments - but you must try and repay all the money you owe before the 0% period finishes, or you’ll get stung by a high interest rate.

According to Springall, parents who have spent too much in the school holidays may be looking to shift credit card debt onto a 0% deal, while others may have maxed out their credit cards on home improvements during the summer.

Note that the maximum 0% offer is not available to everyone; so some borrowers will get the highest amount (say 25 months), while others will get less.

You should also watch out for the balance transfer fee, and any other charges and small print. 

And always avoid spending on it, or withdrawing cash. (If you’re looking for an interest-free credit card for spending, check out our round-up of the best 0% credit card deals for purchases.)

Springall comments: "Consumers looking to consolidate their credit card debts would typically turn to a 0% balance transfer offer, particularly when their existing debt is incurring interest at a high rate. 

"Those who do use these deals will usually have to pay a balance transfer fee, so it’s wise to keep this in mind if debts are going to be moved around often over the short term. Some of the longest interest-free balance transfer offers carry higher transfer fees, but there are still some fee-free offers for borrowers to consider instead."

Where can I find the best rates right now?

The longest balance transfer deal is currently the Barclaycard Platinum 28-Month Balance Transfer Visa. At the end of the 28 months, the interest rate jumps to 24.9% APR. 

The deal also comes with a chunky 3.45% balance transfer fee, which is higher than most; balance transfer fees are often less than 3%.

Here are the longest balance transfer cards on the market right now, according to Moneyfacts. 

It’s important to know that you may not get the full duration of the 0% offer, as this will depend on your credit rating. To see what you could get, use an eligibility checker, like the one on our sister site GoCompare to see what balance transfer card you can get. 

If you’re looking for a no-fee balance transfer credit card, check our 0% balance transfer cards best buy guide to see the top rates on the market. 

The number of people struggling to make all their bills and credit commitments on time remains concerningly high with one in five people grappling with debt in January 2023, according to the City regulator.

January usually tends to be a month when people particularly struggle with their debts, as bills from Christmas pile up. But the Financial Conduct Authority (FCA) says the number of those struggling has increased by 3.1 million since May 2022 - jumping from around 7.8 million in May last year to 10.9 million in January 2023.

And the number of UK adults who had missed bills or loan payments in at least three of the previous six months is also estimated by the regulator to have increased by 1.4 million, from 4.2 million (8%) in May 2022 to 5.6 million (11%) in January 2023.

Researchers also found that 29% of adults with a mortgage and 34% of renters had experienced payment increases in the six months to January this year.

There were also signs of some people reducing their insurance cover to save money, with 8% of people having cancelled one or more policies and 7% having reduced their level of cover – something that could leave them worse off or in difficulty if something goes wrong.

Unsurprisingly, the FCA also found that the cost of living is having an impact on people’s mental wellbeing, with around 28.4 million people in January 2023 feeling more anxious or stressed due to the rising cost of living than six months earlier.

Some 28% had lost sleep due to money worries. One woman told the survey she had used credit to pay for car repairs, home insurance and food shopping. Another said she had used all her savings to fill her oil tank and she relied on oil to heat her home.

The FCA is reminding borrowers that they can get help from their lenders if they are struggling to keep up with payments.

Laura Suter, head of personal finance at AJ Bell, says: “Anyone struggling with repayments needs to face the issue head on: they should approach their lender to at least find out their options and weigh up which might work best for them. If they want an independent opinion they could speak to a charity like Citizens Advice to get more advice.”

Consumer help

The FCA will introduce a new consumer duty in the summer. The duty will require firms to act to deliver good outcomes for consumers and make sure that they are properly supported while using a financial product or service.

Meanwhile, only 3% of people in a separate YouGov survey, commissioned by HSBC, were aware that they can contact their bank or building society to discuss their financial worries without it impacting their credit score.

The first point of call if you’re struggling with a bill is the provider.

One area of concern is mortgages. The FCA has already forecast that 356,000 people will have missed a mortgage payment by the end of June 2024

Your mortgage lender should offer a range of options if you’re struggling with your home loan. This can include:

• a temporary mortgage payment holiday (potentially for up to a year)
• extending your mortgage term
• switching from a repayment to interest-only mortgage to ease monthly bills

While all these options will cut payments in the short term, they come with a price tag: you’ll likely pay more on your mortgage in the long run.

The Avios reward scheme, pioneered by British Airways, is considered by some to be one of the best reward schemes in the world mainly due to its flexibility. There are lots of different ways to collect Avios points, and there are lots of different ways to spend them as well, from flights, hotels, car hire, and online shopping.

What’s more, points can be used across a range of airlines and holiday providers - you’re not limited to British Airways (BA). A Barclaycard Avios Card is a great way to pick up Avios points with day-to-day spending.

The new bonus offer from Barclaycard

Barclaycard has two Avios products, an Avios Card and an Avios Plus Card, and from the 17th April 2023, the company has doubled the welcome bonus for those applying for either by the 30th May 2023.

The Barclaycard Avios card is the standard offering but it still has some fantastic features:

• If you apply by 30 May 2023, you’ll collect a double welcome bonus of 10,000 Avios (usually 5,000 Avios) if you spend £1,000 in your first three months. New customers only. T&Cs apply
• Collect 1 Avios for every £1 spent on eligible purchases, with no monthly fee.
• Spend £20,000 on the card within 12 months and you’ll receive a British Airways cabin upgrade voucher to use on an Avios Reward Flight booking. T&Cs apply.
• Get up to five months of Apple TV+, Apple Music, Apple Fitness+, Apple News+ and Apple Arcade for free with your new Barclaycard. Continues as paid subscription after trial. UK only, T&Cs apply.

Representative example – most accepted customers get

• 28.9% APR representative (variable)
• 28.9% purchase rate p.a. (variable)
• Based on a £1,200 credit limit
• £0 monthly fee

The approval of your application depends on your financial circumstances and borrowing history, so do the terms you may be offered. Eligibility and conditions apply.

The Barclaycard Avios Plus card comes with a much bigger Avios bonus and you can earn more points with spending:

• Collect 1.5 Avios for every £1 spent on eligible purchases, with £20 monthly fee.
• Spend £10,000 on the card within 12 months and you’ll receive a British Airways cabin upgrade voucher to use on an Avios Reward Flight booking. T&Cs apply.
• Airport Lounge Membership – access over 1,000 airport lounges worldwide at a discounted rate of £18.50 per lounge pass, per person.
• Get up to five months of Apple TV+, Apple Music, Apple Fitness+, Apple News+ and Apple Arcade for free with your new Barclaycard. Continues as paid subscription after trial. UK only, T&Cs apply.

Representative example – most accepted customers get

• 78.9% APR representative (variable)
• 28.9% purchase rate p.a. (variable)
• Based on a £1,200 credit limit
• £20 monthly fee

The approval of your application depends on your financial circumstances and borrowing history, so do the terms you may be offered. Eligibility and conditions apply.

Enjoy flights, hotels and more with Avios

You can spend your Avios on all kinds of travel experiences. Here are some examples of where your Avios could take you:

• 18,500 Avios + £1 for an off peak, economy return flight for one passenger from London to Milan*
• 23,500 Avios + £1 for an off peak, economy return flight for one passenger from London to Barcelona*

*Plus £1. Reward Flight Saver fares offers a fixed cash and Avios amount and are subject to availability. Other pricing options are available. All tangible examples accurate as of January 2022. With Avios, you can explore your favourite destinations on other ways too by spending your Avios on car hire or hotels. Check your eligibility here

Disclaimer

The approval of your application depends on your financial circumstances and borrowing history, so do the terms you may be offered. Eligibility and conditions apply. 10,000 Avios welcome bonus, usually 5,000, when you spend £1,000 in the first 3 months. Barclaycard

Avios for the 10k and Barclaycard Avios Plus for the 50k Avios welcome bonus, usually 25,000, when you spend £3,000 in the first 3 months.

New customers only. Offer ends 30 May 2023.T&Cs apply

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This article may contain affiliate links – when you purchase through links on our site, we may earn a commission*

Using a credit card for big purchases can help you spread the cost over several months, but it only makes sense when using the best credit cards that offer 0% on purchases.

Although the Bank of England has frozen the base rate at 5.25% at three meetings, interest rates are still high. With that in mind, using a 0% purchase card may make more sense financially than other forms of borrowing.

But it’s important to remember that you should never borrow more than you can afford and stay on top of making your minimum payments and only use the card to buy what you need.

Here are the best 0% credit card deals available now. If you want to know more about how these cards work, and any drawbacks associated with the deals, we take a closer look below.

These are only prospective offers – the rate you get will depend on your personal credit score. Before you apply, use an eligibility checker, like the one on our sister site Go.Compare will help you see if you qualify for the best deals before you apply.

The best 0% credit cards

Barclaycard Platinum

• Up to 21 months 0% on purchases
• Up to 18 months 0% on balance transfers
• 24.9% APR after 0% period

This offering from Barclaycard has one of the longest 0% offers on the market. If successful, applicants can get a maximum of 0% on purchases for up to 21 months, although this offer is not guaranteed. Our eligibility calculator from sister site Go.Compare will help you see if you qualify before you apply.

Natwest Purchase and Balance Transfer credit card

• 19 months at 0% on purchases and balance transfers
• 24.9% APR after the 0% offer

This card from Natwest is offering 19 months 0% on purchases and balance transfers. But note, balance transfers are only 0% for the first three months of opening the account, and it comes with a 2.99% transfer fee. 

Our eligibility calculator from sister site Go.Compare will help you see if you qualify before you apply, or you can check directly on the Natwest website. 

M&S Shopping Plus Credit Card 

• Up to 18 months 0% interest on purchases
• Up to 15 months 0% on balance transfers
• 23.9% APR after 0% offer

This dual credit card offers gives 0% interest on purchases and balance transfers, but the 0% period you get will depend on your credit history. 

Plus, every time you shop you will earn points which can be converted into M&S vouchers. Our eligibility calculator from sister site Go.Compare will help you see if you qualify before you apply, or you can check directly on the M&S website. 

HSBC Purchase Plus Credit Card

• Up to 18 months 0% on purchases
• Up to 16 months 0% on balance transfers
• 24.9% APR after 0% offer

With this HSBC credit card, you can get up to 18 months 0% on purchases. Plus, get up to 16 months 0% on balance transfers, with a 3.49% transfer fee on a minimum £5. 

The good news is, there is no fee to hold this Plus credit card. Our eligibility calculator from sister site Go.Compare will help you see if you qualify before you apply, or you can check directly on the HSBC site.

Should I use a 0% credit card?

These interest-free credit cards allow users to effectively borrow money for free, but it’s important to remember that this is still borrowing.

You have to repay the money you owe and if you miss a payment or fail to meet the minimum each month, the company is likely to cancel your 0% offer and start adding interest.

Other fees and charges may also be applied to your bill.

Things to watch out for with credit cards

Credit cards tend to be a fairly expensive form of borrowing so you shouldn’t come to rely on them to fund spending.

While a 0% purchase card can help you borrow money more affordably as there’s no added interest to pay on your repayments, the 0% interest will only be available for a limited time.

Therefore, it’s vital to keep an eye on when the offer period ends. It could be anything from a couple of months to several years.

After the offer ends, the card's standard rate of interest for purchases will apply.

Who can apply for the best credit cards on the market?

These are the best deals on the market, but you might not be able to access these offers.

Legally, credit card firms only need to give their advertised deals to 51% of successful applicants. If you have a bad credit history they might not offer you anything like the advertised deal. So it pays to do your research.

An online eligibility checker, like the one from our sister site Go.Compare or checking your credit score with any one of the three credit reference agencies such as Experian, Equifax or TransUnion can be a good place to start.

If you’re planning a holiday abroad or often go on business trips, using the best cards for travel could help you make your funds go further.

There are many ways to save on holiday, whether it’s booking flights or buying travel money in advance.

But thinking about how you’ll pay for things on your trip is also important, as the wrong card could see you stung with high exchange fees.

You can avoid these charges by using a competitive travel card that comes with zero fees on foreign transactions. We have compiled a list of the best cards for travel abroad, and the host of perks they offer.

Best credit cards for travel abroad

If you are using a credit card, make sure you are in a position to pay off your bill in full at the end of each month. Otherwise, any interest charges will cancel out any benefits.

Lloyds Ultra Credit Card

This card from Lloyds comes with a low APR rate and there is no cap on how much cashback you can earn.

• 1% cashback on all card purchases in the first year, 0.25% after
• No foreign exchange fees or ATM withdrawal fees
• Representative APR and purchase rate of 12.9% (variable)

Barclaycard Rewards Card

• No fees on purchases abroad if paid in full
• 0.25% cashback on everyday spending
• No interest on cash withdrawals if paid in full
• Representative APR and purchase rate of 28.9% (variable)

NatWest Travel Reward Credit Card

• 1% cashback on eligible travel spending
• Or up to 15% cashback at select partner retailers
• Or 0.1% back on all other spending
• No foreign transaction fees on purchases abroad
• 3% fee on ATM withdrawals (minimum £3)
• Representative APR and purchase rate of 27.9% (variable)

Virgin Money Travel Credit Card

• 1% cashback on spending for the first 90 days, 0.25% cashback after that (up to £15 cashback per month)
• No foreign exchange fees overseas
• Representative APR 27.9% (variable)
• Up to 15% additional cashback with select retailers
• ATM withdrawal fees of 5% applies plus interest charge until repaid in full

Santander Edge Credit Card

• 1% cashback (max £10 per month) on all purchases
• No foreign exchange fees on purchases overseas if spent in local currency
• £4 monthly fee
• Overseas ATM withdrawals have a 3% fee (minimum £3)
• Representative APR 37.8% and purchase rate 29.9% (variable) until fully repaid

If you are applying for a credit card, always go through an eligibility checker, like the Card Match tool from our sister site Go.Compare.

We look at the best American Express credit cards and the best credit cards for airport lounge access in separate guides.

Best debit cards for travel abroad

We look at some banks that do not charge fees when using your debit card abroad. However, there may still be ATM withdrawal fees, often set by the ATM provider.

Chase Debit Card

• 1% cashback on eligible spending for the first 12 months (max £15 per month)
• Note: no cashback on overseas spending
• Fee-free spending and ATM withdrawals home and abroad

Chase also gives you access to its 2.25% (variable) easy access saver. However, the interest rate is quite low, so it’s worth checking out our best easy-access savings accounts guide for the top-paying accounts.

First Direct Debit Card

• Fee-free spending abroad
• Fee-free ATM withdrawals abroad, up to £500 per day
• £250 interest-free overdraft

You could get a £175 bank switching bonus for moving your current account to First Direct, and access a 7% regular savings account.

Starling Bank Travel Money Card

• No fees on spending abroad
• No fees on cash withdrawals abroad
• Manage in-app and online
• Maximum £300 ATM limit and six withdrawals per day while abroad

Monzo Debit Card

• Fee-free spending at home or abroad
• 0% interest on purchases over £100 or more paid over three months
• Otherwise 29% APR representative (variable) for up to 24 monthly payments

Make cash withdrawals of up to £200 outside of the EEA every 30 days for free. Anything over that incurs a 3% charge. You can also earn 2.75% AER (variable) with an Instant Access Savings Pot.

John Lewis has launched a new rewards credit card - the John Lewis Partnership credit card - which offers shoppers the chance to save money by accumulating points towards money off.

With inflation on the rise and interest rates adding to borrowing costs such as mortgages, making savings where possible makes good sense.

And often, reward credit cards can help make savings at your favourite store, as long as you always pay off your bill in full, otherwise interest charges will cancel out the rewards.

We look at how the John Lewis Partnership credit card works and how it compares to other reward credit cards that can save you money.

How does the John Lewis Partnership credit card work?

The John Lewis Partnership credit card rewards shoppers by providing them with loyalty points when money is spent using the card.

You will earn five points for every £4 spent at John Lewis and Waitrose, dropping to one point for £4 spent in other retailers. But, if you use the card to pay for your everyday spending, the points could soon add up.

Cardholders can turn those points into a voucher to spend at John Lewis or Waitrose, at a rate of £5 for every 500 points.

The John Lewis Partnership credit card also allows you to spread payments if you make a big purchase early on, with a six month 0% period on purchases from when you open the account. The interest rate after that is 21.9% APR on purchases.

As with all credit cards, you should check your eligibility before you apply using the eligibility checker on the John Lewis website and always keep up with minimum repayments.

Which are the best rewards credit cards?

If you are a regular shopper at John Lewis or Waitrose, then the loyalty credit card can help cut costs, but it may also be worth looking at other reward credit cards depending on which reward suits you best.

Here are some of the rewards credit cards that are worth considering.

Avios credit cards

Credit cards that allow you to slash the costs of holidays are often the most popular, allowing you to accumulate Avios points.

The Avios scheme allows you to cut the cost of flights, hotels and car hire through the use of Avios points.

You can accelerate the rate at which you earn those points by utilising one of the various credit cards affiliated with the Avios scheme, such as the British Airways American Express credit card. For every £1 spent you earn one Avios, with a bonus £5,000 Avios on offer should you spend £1,000 in the first three months with the card.

What’s more, if you spend £12,000 over the year then you qualify for a companion voucher which can be used to take someone with you on a flight. The British Airways American Express credit card has no annual fee, though there is also the British Airways American Express Premium Plus card which allows you to earn more Avios on your spending, but comes with a £250 annual fee. Interest rate on the card is 28.1% APR - but again, if you are using the card for rewards, pay off the bill in full each month to avoid charges.

If you don’t like flying with British Airways or its partner airlines in the Avios scheme, then it may be worth looking into the Virgin Atlantic credit card instead which works in a similar way.

Clubcard credit cards

If you prefer to focus on earning rewards at supermarkets, then Tesco Bank’s range of Clubcard credit cards may be suitable. It has a host of cards offering 0% periods on purchases, balance transfers or both. The typical interest rate is 22.9% APR.

All of these rewards credit cards allow users to earn Clubcard points when they spend using the card, irrespective of where that money is spent. However, the rewards are much greater when you spend with Tesco ‒ five points for every £4 spent, rather than one point for every £8 spent outside of Tesco and Tesco Fuel.

Clubcard points can be converted into vouchers to spend at Tesco, at a rate of 100 points for a £1 voucher. Alternatively you can turn them into vouchers for partner retailers, which allows you to increase their value by as much as three times.

Nectar credit cards

A rival offer comes from another supermarket, Sainsbury’s, with its Nectar credit card.

Shoppers earn Nectar points when they spend with the card, earning three points for every £2 spent at Sainsbury’s, Argos, Habitat and Tu Clothing. That return drops to one point for every £5 spent in other retailers.

There is also a welcome offer in place for the card, meaning that so long as you spend £400 in any of the stores listed above within the first two months with the card, you’ll get a bonus 8,000 Nectar points.

Generally each Nectar point is worth around 0.5p when being converted into vouchers, though there are some rewards partners who offer a greater return when you use your points to spend with them.

The interest rate on the card is 21.9% APR.

How to maximise your returns from a rewards credit card

Rewards credit cards can be an excellent way to get something for nothing, but there are certain things to bear in mind if you want to get the best possible return from using them.

It’s worth thinking carefully about which cards are going to allow you to earn rewards most quickly ‒ if you only ever shop at Tesco, there’s not much value in opting for a Sainsbury’s card, for example.

Yet you also need to think about which cards offer benefits that you most value. Yes, you may be a regular shopper at John Lewis, but if you are planning a big holiday in the next year or so then the Avios points on offer from an Avios card may be a more valuable reward than money off your groceries.

The way that you use the card is also important. The rewards from these credit cards are bigger if you spend more with them, meaning it’s a good idea to put as much of your regular spending on them as possible.

However, this needs to be money that you were planning to spend anyway, rather than money spent simply to earn rewards.

Cashback credit cards give you rewards on your everyday purchases, paying you a percentage of what you spend. If you pay off your statement in full every month, these cards can help you earn hundreds of pounds worth of rewards each year.

The rewards you earn can build up over time, but make sure you pay off your balance in full, otherwise interest charges may outweigh the perks.

These cards usually come with a cap on the amount of cashback you can earn, and note that some have a monthly fee.

We look at the top credit cards for cashback to help you make the most of your spending.

What are the best cashback credit cards?

How do cashback credit cards work?

If you have a credit card that gives you cashback at a rate of 0.5%, for every £100 you spend, you get 50p back. As attractive as the promise of free money sounds, there are downsides, too.

Credit card companies may offer attractive cashback rates for only a fixed period of time, such as the first five months. In order to get the most out of using cashback credit cards you need to be mindful of two things: it may be beneficial to use them for all your spending (but watch out for credit card fees with any purchases) and you must pay off the full amount every month.

The introductory cashback offers could be useful if you know you're going to be buying something expensive. But if you carry a balance over just once, the resulting interest charge could wipe out any cashback you get.

Cashback credit card providers can charge a fee and typically offer uncompetitive interest rates. Some also require a minimum spend before you can generate cashback savings.

As with any credit card, be careful to pay it off in full to avoid being charged interest, and always check the terms and conditions to make sure the card is the right one for you.

Balance transfer credit cards can slash the costs of existing credit card debt and could save you thousands by reducing the interest you pay.

These cards allow you to transfer debt from one credit card provider to another at 0% interest — as long as you keep up with monthly payments and do not use the card for purchases.

Kalpana Fitzpatrick, MoneyWeek’s digital editor, says: “Balance transfer cards can help you clear out existing debt at no extra cost and are great for those that have existing credit card balances.

“But, keep in mind you will need a good credit score to get the top deal and there are often transfer fees to pay, so this only makes sense if you have a fairly large balance and you can pay it off in the 0% period.”

If you’re looking to reduce your credit card debt this year, banks are offering some of the longest deals of more than 30 months with 0% interest on balance transfers.

According to financial ratings expert Defaqto, 12 credit cards are offering more than 30 months with no interest in 2026, while only three such deals were available at the beginning of last year.

We round up the best 0% balance transfer credit cards on the market now.

Balance transfer credit cards vs money transfer credit cards

While both types of cards might sound similar, they serve two different purposes.

Balance transfer credit cards let you shift any outstanding balance from a current card to one with a lower or 0% interest rate, meaning that you can pay off the balance faster.

In contrast, money transfer credit cards allow you to move funds directly from a card into your bank account. This is usually done with a 0% interest rate for a set period of time to help you clear an overdraft or an outstanding bill.

The best 0% balance transfer credit cards

Here are some of the best 0% balance transfer cards on the market.

Cards with the longest offer

Source: Defaqto

TSB Platinum Balance Transfer Card

This is currently the top deal on the market, with the longest duration of up to 38 months. Here’s what you get:

• Up to 38 months, 0% interest on balance transfers, then rate jumps to 24.9% APR
• 3.49% transfer fee
• 0% on purchases for three months, then rates vary
• The minimum you can transfer is £100, up to a maximum 95% of your credit limit from UK cards
• To benefit from the balance transfer offer, it needs to be taken out within 90 days of opening the account.
• You can’t make a transfer from any other TSB cards.

Existing customers can apply on the TSB app.

Barclaycard Platinum Balance Transfer

• Up to 36 months, 0% interest on balance transfers
• 3.45% transfer fee
• 0% on purchases for three months. After the promotional period, a monthly rate of 1.87% or annual rate of 22.44% applies
• To benefit from the balance transfer offer, it needs to be taken out within 60 days of opening the account.
• The minimum you can transfer is £250 across up to five balance transfers. The maximum transfer will be 90% of your credit limit.
• You can’t make a transfer from any other Barclaycard or partner cards.
• After the 0% period, the interest rate jumps to 24.9% APR

New customers can also get £20 cashback when they transfer at least £2,500 within 60 days of opening the account. On top of that, you can get a free 12-month Apple TV subscription. This offer will end on 29 January 2026.

Tesco Bank Balance Transfer Credit Card

• 36 months, 0% interest on balance transfers, then 24.9%
• 3.45% transfer fee
• 0% interest on money transfers for nine months, with a 3.99% transfer fee
• You can transfer up to 95% of your available credit limit

You may receive a purchase rate of between 24.9% to 29.9% variable, depending on your circumstances. If you use your card for spending, you won’t be charged any interest, provided you pay off the balances that aren’t on a 0% rate in full each month.

You can pay with your card in or outside of Tesco and collect Clubcard points. You get five points for every £4 spent using a Clubcard Credit Card at Tesco, one point for every £4 spent, one point per litre of Tesco Fuel, and one point for every £8 spent.

Virgin Money Balance Transfer Credit Card

• Up to 35 months, 0% interest on balance transfers, then 27.9%
• To benefit from the balance transfer offer, it needs to be taken out within 60 days of opening the account.
• 0% interest on purchases for three months, then 27.9% variable
• Transfer up to 95% of your credit limit
• 2.95% transfer fee
• You can't make a transfer from another Virgin Money credit card

Virgin’s balance transfer credit card comes with a relatively high transfer period and a lower transfer fee compared to other providers.

HSBC Balance Transfer Credit Card

• Up to 35 months, 0% interest on balance transfers, then rate jumps to 24.9%
• To benefit from the balance transfer offer, it needs to be taken out within 60 days of opening the account.
• 3.19% transfer fee (minimum transfer of £5)
• 0% on purchases for three months, then rate jumps to 24.9%
• You won’t be eligible if you hold an HSBC Basic Bank Account.

Cards with no or low transfer fee

There are options available for customers who want a 0% balance transfer card with no transfer fee. We round up the options.

Barclaycard No Fee Platinum Balance Transfer Credit Card

• No fee to transfer a balance for up to 14 months
• 0% interest on balance transfers
• 0% interest on purchases for three months
• After the 0% period, the interest rate jumps to 24.9% APR for both balance transfers and purchases
• No monthly account fee
• To benefit from the offer, you must transfer within 60 days of opening your account.

Natwest Balance Transfer Credit Card

• Up to 12 months, 0% interest on balance transfers
• Balance transfers must be made within three months of opening the account
• No fee to transfer
• 0% interest on purchases for three months
• Minimum transfer of at least £100
• Can transfer up to 95% of your credit limit
• After the 0% period, the rate changes to 24.9% for both balance transfers and purchases

Santander Everyday No Balance Transfer Fee Credit Card

• Up to 12 months, 0% interest on balance transfers
• No fee to transfer a balance for the first 12 months
• No monthly account fee
• 0% interest on purchases for three months
• After the 0% period, the interest rate jumps to 24.9% APR for both balance transfers and purchases

You shouldn’t already have another Everyday credit card, and you can’t transfer balances from other Santander or Cahoot credit cards.

Santander All in One Credit Card

• 15 months, 0% interest on balance transfers and purchases
• No transfer fee
• £3 monthly charge to hold the account
• No foreign exchange fees on overseas purchases
• 0.5% cashback on all purchases (up to £10 a month)
• After the 0% period, the rate jumps to 29.8% APR for balance transfers and 23.9% for purchases

You won’t be able to transfer any balances from other Santander or Cahoot credit cards, loans or current accounts.

Tesco Bank Low Fee Balance Transfer Credit Card

• 0.75% to transfer a balance for up to 15 months
• 0% interest on balance transfers for 15 months
• 0% interest on purchases for three months
• After the 0% period, the interest rate jumps to 24.9% APR for both balance transfers and purchases
• 0% interest on money transfers for nine months, with a 3.99% transfer fee
• To benefit from the offer, you must transfer within 90 days of opening your account.
• Collect Clubcard points on spending

If your credit score isn't perfect, you might be offered less time to pay off the balance.

It’s also important that you only use the card to pay off the existing credit card debt and do not use it to spend — otherwise, you could face hefty interest charges. Failing to pay the minimum balance each month could mean you incur fines and damage your credit rating.

The amount of money we are putting on our credit cards is steadily increasing as we seek to spread our rising expenses. But are you aware of the extra protection your credit card provides?

Under Section 75 of the Consumer Credit Act 1974, your credit-card provider is “jointly and severally liable” for your purchases. In practice this means that if you pay for something with your credit card the lender is just as liable as the company you made the purchase from if something goes wrong.

That means if the item you buy is faulty, broken or doesn’t arrive you can turn to your credit-card provider as they are legally required to help. It also covers services bought with a credit card such as flights, accommodation or a spa treatment. If the service isn’t provided your lender has to help rectify the matter.

You don’t even need to have paid the full bill for the item with your credit card. If you paid a deposit of more than £100 or less than £30,000, then your lender is liable to help.

For example, let’s say you buy a £20,000 car. You put a £500 deposit on your credit card and pay the rest directly from your bank account. Then the car dealership goes bust before you get your car. You can seek a refund under Section 75 from your credit card provider.

Exceptions to the Section 75 rule

However, there are limitations to your Section 75 protection. There must be a direct transaction between you and the retailer. If you pay via PayPal or Google Wallet, then you may not be covered by Section 75. That’s because you actually paid PayPal and they passed the money on to the retailer. The exception to this with PayPal is if the online store you are using relies on PayPal to process card payments. The way to tell the difference is that if you don’t have to log into your PayPal account you may be covered by Section 75.

The same exclusion applies if you buy via a third-party seller such as a travel agent or through Amazon Marketplace. You also won’t be covered by Section 75 if you use a “buy now, pay later” service such as Klarna. You must also have paid for an individual item and not several things from one retailer that add up to more than £100. And you can’t get Section 75 protection if you withdrew cash with your credit card and then used the cash to buy something.

If you are covered by Section 75 and something goes wrong, in most cases it will be easier to sort out the problem with the retailer first – but you are not obliged to do so. Keep a record of all communication and contact your credit card provider. They will want to know all the details of the transaction, why you want to make a claim and why you are turning to them rather than the retailer.

If your Section 75 claim is rejected, or it hasn’t been resolved in eight weeks, you can take your complaint to the Financial Ombudsman.

For years the only way to collect Avios points – the British Airways air miles scheme – has been with an American Express credit card. The issue with that has always been that many retailers don’t accept Amex. But now you can collect your Avios points with a Mastercard.

Barclaycard has launched two new credit cards that earn Avios points every time you spend. They are “the most generous Mastercard or Visa credit cards available,” according to Rob Burgess, the editor of Head for Points, a website for frequent flyers looking to maximise their rewards.

The first new card is the Barclaycard Avios. It has no fee, and you can earn one Avios point for every pound spent. If you spend £1,000 in the first three months, you’ll get a bonus 5,000 Avios. That’s enough for a flight to Paris or Amsterdam. Plus, if you spend £20,000 a year on the card, you’ll get a free flight upgrade voucher.

Alternatively, you can pay £20 a month for the Barclaycard Avios Plus card. That gets you 1.5 Avios points per £1 spent. If you spend £3,000 in the first three months, you’ll get 25,000 bonus Avios points and spend £10,000 a year and you’ll get a cabin upgrade voucher.

On top of that with both cards you’ll get a five-month free subscription to Apple Music, Apple TV+, Apple News+ and Apple Arcade. “You honestly couldn’t ask for more from a non-Amex credit card,” says Burgess.

The Amex option

The key advantage of the Barclaycard Avios cards is they are operated via Mastercard rather than American Express. Mastercard is much more widely accepted than American Express, so you won’t face the annoyance of missing out on Avios points when your Amex is rejected. That said, the Amex cards are still attractive.

The fee-free British Airways American Express card earns points at the same rate as the free Barclaycard version and has the same joining bonus. But you only need to spend £12,000 a year to get a companion voucher – that’s £8,000 less than the Barclaycard and you get a free flight (although taxes and charges apply) rather than just an upgrade.

The Barclaycard Avios Plus card is £10 a year cheaper than the Amex equivalent and certainly worth considering if you are willing to pay a fee for your credit card. It offers the same earnings rate as the BA Premium Plus Amex and the same welcome bonus. The difference is that if you spend £10,000 a year on the Amex card, you’ll again get a free companion voucher rather than just a cabin upgrade. So, it all depends on whether you want a cheap flight for a friend or to fly in style yourself.

Reward credit cards can be a great way of getting more when you shop but are best avoided if you can’t pay off your balance in full each month. The interest rates on these types of credit card tend to be high and, if you pay it, you’ll soon wipe out the benefits. Both the Barclaycard Avios cards charge interest at a 23.9% annual rate, but you can avoid this if you pay your bill on time and in full every month.

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Customers who are struggling to get their money back for travel, accommodation, events or anything else that has been cancelled may be able to get a refund from their credit-card provider. Under Section 75 of the Consumer Credit Act, your credit-card provider is jointly liable if you don’t receive goods or a service that you paid for with your credit card. The item has to have cost between £100 and £30,000, but you only need to have paid for part of it on your credit card to be protected for the whole amount. This can help if a company is refusing to give you a refund, or if they have gone bust. To make a claim contact your credit-card provider.

If your income has dropped and you are worrying about making your card repayments, don’t panic. The Financial Conduct Authority has brought in emergency rules that mean lenders are expected to offer customers a payment freeze of up to three months. This shouldn’t affect your credit rating.

If you need to minimise the interest accruing on your debt, there are still some balance-transfer credit cards available with an interest-free deal. TSB’s Platinum 30 Month Balance Transfer card has the longest interest-free period at two and a half years – but you’ll pay a 2.95% transfer fee.

If you don’t need that long, then Santander offers 18 months at 0% on balance transfers with no fee at all. Just remember to plan how to pay your debt off before the interest-free period ends.

Anyone building up airmiles may worry about airlines going bust if the crisis drags on. So if you earn loyalty points through credit cards with the intention of turning them into airmiles – such as Tesco Clubcard (which can be transferred into Avios) or American Express (Avios or Virgin Flying Club) – you’re better leaving any balance on the card for now: they can either be converted into airmiles later or used for other rewards.

Airmiles can’t be converted back, but Avios points can be used to buy alcohol instead. However, this is expensive: it costs around two points per penny, compared with one per penny for flights. Virgin Flying Club points can be shifted into hotel reward schemes such as the IHG Rewards Club or the Hilton Honors, although again the conversion rates are worse than for flights.

The days of bumper cashback offers or fantastic rewards with your credit card are long gone. But there are still several good reasons to pay with plastic. One is the protection you receive thanks to Section 75 of the Consumer Credit Act. Pay for something costing between £100 and £30,000 on a credit card and the card provider is as liable as the seller if something goes wrong.

Credit-card firms are currently swamped with Section 75 claims, thanks to Thomas Cook. “The 178-year-old travel agent went into administration in September, prompting thousands of customers who had booked trips on credit cards to submit refund claims,” notes Sam Barker in The Daily Telegraph.

You can put a claim in with your credit-card provider if the thing you purchased never arrives or isn’t what it should have been. For example, you could claim for flights you bought if the airline goes bust, or a car that breaks down days after you bought it. You even get protection for the whole cost if you only paid the deposit on your credit card.

Boost your credit rating

Another reason to put some of your spending on a credit card is that it improves your credit rating. It is a myth that a person who has never borrowed has the best credit rating. Lenders want to see that you are a reliable borrower; if you’ve never borrowed, they don’t know you’ll pay them back.

Using a credit card and repaying the balance in full each month – or at least never missing a minimum payment – will bolster your credit rating.

There are also financial benefits to spending on a credit card. If you can’t afford to buy something outright then an interest-free credit card is still the cheapest way to borrow. For example, Sainsbury’s Bank is offering 27 months of 0% interest for new spending. Just make sure you clear the debt before the interest-free period expires, otherwise you’ll end up paying 20.9% interest.

Divide your debt by the length of the interest-free period and then set up a direct debit for that amount, so you don’t miss a payment and clear the debt in time. “You need to make at least the minimum payment each month or you may lose the 0% deal and be charged a fee,” says Sarah Coles, personal finance analyst at Hargreaves Lansdown, in The Financial Times.

If you don’t need to borrow, then get paid to shop with a cashback credit card. The return on these cards isn’t as good as it once was, but it is still reasonable. The top-paying card is the Amex Platinum Cashback credit card. It has a £25 annual fee but a 5% cashback rate for the first three months; the rate then falls to 1.25%.

But make sure you clear your balance in full each month, otherwise the 22.9% APR interest will quickly cost you more than you are earning in cashback.

How happy would you be if you'd borrowed £200 for a couple of weeks to get your boiler fixed, and then found that you'd been charged an effective interest rate of 458%?

Not very happy, would be my guess. But that's not how Olly Stock told the Independent he felt when he did just that with payday loan company Speed-e-loans. Instead, he felt that the charges were "clear and reasonable". He says he "would definitely use the service again." Gosh.

Still, Stock isn't alone in thinking that there is nothing wrong with the payday loan market. The Office of Fair Trading has just finished looking into it and concluded that the market works "well" and that there is no need to impose caps on the charges.

Why you should avoid payday lenders

We've looked at the payday loan market before and I'm not entirely sure we agree.

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It is absolutely true that the charges demanded by the sector are clear. Look on the website of say Wonga or Speed-e-loans and you'll be left in no doubt about how much your borrowings will cost you.

Wonga has a great little graphic that allows you to put in exactly how much you want to borrow for how many days. It then tells you immediately what this will cost you. Put in £200 for 20 days and you will be told that you'll repay the capital plus £46.04 in interest and fees. The total is clearly stated and you are also told in pretty big letters that the typical APR is 2689%.

That's all good the one thing I love about this industry is its honesty. And if you need money in a desperate hurry and you are going to be able to pay it back before things get out of control it's a straightforward way to borrow money.

However, if you aren't in any way desperate, it is a totally insane way to borrow money. Stock says that he doesn't often borrow money. He just waits until he has money before he buys things. That's very responsible.

But he should still have a credit card. Why? Because even if he isn't going to use it on a regular basis (and I am not suggesting he does), if he has a good one, he can use it to save himself some money next time his boiler breaks down.

Authorised overdrafts are cheaper than payday loans

The payday loan companies make great play from the fact that an overdraft can cost more than a payday loan. And, if the overdraft in question is unauthorised, that is almost certainly true. The average interest rate on an unauthorised overdraft is around 19.7%, but the charges are a killer.

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Go over your overdraft limit with the Halifax and you'll get charged £5 a day. You can argue about the rights and wrongs of this. But nonetheless that would mean that going over by £200 for 20 days would cost you not £46.04, but a shocking £100 going on double what Wonga would charge.

However, it certainly isn't true of most authorised overdrafts if you avoid the likes of the Halifax Bank of Scotland, which charge daily fees, and Lloyds, which is soon to start charging a monthly fee, the average interest rate on these is around 13-14%.

How to get a 0% short-term loan

And it isn't true of the usual villain in the personal finance world the credit card. Get the right card and you can easily borrow £200 for 20 days at no cost at all. If you pay your bills off in full every month, you shouldn't have to pay any interest at all on most credit cards. And if you need to borrow money for more than 30 days, you can still find several cards offering 0% rates on new spending for the first 12 months of holding them.

The downside to a 0% card is that after 12 months your deal will run out and you'll want to move on. That adds up to boring admin, which is why you might want to go for a low APR card instead.

The Halifax Easy Rate Mastercard comes with an APR of 6.9% which, in the great scheme of loan rates, sounds pretty good to me. It certainly makes their credit cards a lot better value than their bank accounts.

Just make sure that you don't use one to withdraw cash to pay your boiler man: do so and you'll pay an instant 2.075% fee and then a rate of 27.95% from the second the cash hits your hand until you pay it back there is no interest-free period at all. On the plus side that still adds up to around a tenth of what you'd pay with a payday loan

The same is true of credit cards aimed at those with bad credit. Take the Aqua card. Designed for those who "might have trouble getting credit from other companies," it charges an APR of 35.9%. That's high. But as with most cards, no interest is charged if you pay in full by the payment date, and it still represents a massive saving over payday loan rates.

There is a suggestion that the average payday loan customer is somehow "financially excluded" and therefore unable to get a credit card or other kind of loan. But if the industry's own PR is anything to go by, that just isn't so. Speed-e-loan claims that its customers have an average salary of £21,000. That's well into credit card approval territory, even these days. So why are the likes of Mr Stock paying 400% plus for short term loans when they could be paying 0%?

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When it comes to credit cards, most savvy borrowers spend their time chasing the longest 0% balance transfer deals available. But these aren't the best deals for everyone. For some of us they work out more expensive than simply opting for a low-rate credit card.

Watch out for fees

It's the balance transfer fees that you have to watch out for. If you only have a small balance to pay off, then the fee can end up costing you more than if you had simply kept your balance on an interest-charging card.

For example, if you owe £1,000 on a credit card that charges 10.7% APR and you pay off your balance in six equal monthly instalments, then you'll pay £30 in interest, says Neil Faulkner on Lovemoney.com. Whereas if you had moved the £1,000 onto a 0% balance transfer deal with a 3% fee, then paid off the balance over six months (assuming the 0% deal lasts that long), you'll also have paid £30 in this case, in upfront fees rather than interest.

In other words, in this instance, if your existing interest rate was below 10.7%, you'd be better off sticking with the interest-charging card than going for the 0% one.
M&S Money has created a helpful table that shows what a balance transfer fee equates to an annual equivalent interest rate.

So if you have a credit card balance which you know you can pay off quite quickly, then a low-rate card may well be cheaper than a 0% deal just make sure that it won't charge you a fee for balance transfers.

Best cards for large debts

However, if you have a large debt to clear, then a 0% deal may be the best thing for you, as the balance transfer fee will be lower than the interest charges on a normal credit card.

But if you have a large debt and know that you won't pay it off within the 0% period then bear in mind that at the end of the period you'll either have to pay another balance transfer fee to shift the remaining debt to another 0% card, or you'll be stuck paying interest at the provider's standard rate. In this instance you might be better off going for a low interest rate card in the first place and saving yourself the cost and hassle of multiple transfers.

Pay your cards off in the right way

The main way that credit card firms make their cash other than by charging extortionate interest rates to those who don't shop around is through a thing called the negative payment hierarchy. 

This nets card companies more than £500m a year, according to Nationwide which also happens to be the only firm that doesn't apply it.

Negative payment hierarchy refers to the order in which your debt is cleared. What it means is that any payments made to your card go towards paying off the debt which is incurring the lowest interest rate first. Say, for example, you have a credit card with a 0% balance transfer deal for 12 months, but a standard rate of 16.6%APR for purchases. You have £1,000 outstanding on the card, having transferred your balance from another card. But you use the card to buy a £200 television.

The £200 will sit and accrue interest at the card's purchase rate of 16.6%APR until you have completely paid off the £1,000. So even if you pay off £200 of your debt straight away, you'll have paid off £200 of the existing £1,000 debt rather than the £200 purchase.

The easy way to avoid this is to have one card for balance transfers and another card for purchases. This way you can avoid paying any interest at all as long as you don't mix up the cards and pay for something new with your balance transfer card.