What credit card should I get?
Written by
Emily Tye
Reviewed by
Amy LancashireWhich credit card you should get largely comes down to two things: whether you clear your balance in full each month, and what your credit file will actually get you accepted for. Rewards and promotional offers come into play once those two are settled.
Some guides start by listing card types and leave eligibility to the end, which is how people can end up applying for a card they were never going to get, and potentially taking a hard search on their credit file for nothing.
Start with one question: do I clear my balance in full each month?
This is the fork that decides everything else. Be honest with yourself about it, because the answer changes which features are worth paying attention to.
If I pay it off in full every month
The interest rate barely matters to you. If your statement balance is cleared by the due date each month, you generally will not be charged interest on your purchases at all, so a headline APR is close to irrelevant.
In this position, look at cashback or rewards, and at any annual fee. A fee only makes sense if what you earn back over a year in rewards or cashback beats it.
It’s worth reading up on what cashback on a credit card is before you assume a rewards card is the better deal, and on how to avoid paying credit card interest so you keep the interest-free position you are relying on.
If I carry a balance from month to month
The rate is the most important number, as rewards will not make up the difference.
The APR is the number to compare, but remember, the comparison that counts is between the cards you are realistically likely to be approved for, rather than against headline rates you would not be offered.
Plenty of people carry a balance, so you’re not alone if this is you. According to the FCA's Financial Lives 2024 survey, of the 35.3m UK adults who held a credit card, 10.1m carried a balance rather than paying it off in full every month or most months.
What will I actually be accepted for?
Your credit file narrows the field before your preference does.
According to the latest data from the FCA, 20% of people who applied for a credit card in the 2 years to May 2024 were declined (read more about credit card acceptance rates).
That is roughly one in five applicants turned down. Of the 3.2m adults who were declined any regulated credit agreement over that period, 76% thought financial factors such as their credit history, existing debts or income had contributed.
In practice this means the realistic question is not 'which card is best' but 'which cards am I likely to be offered'. The strongest rewards cards are generally aimed at people with a longer, cleaner credit history. If yours is short, thin or has some missed payments on it, those may not be on the table yet.
It helps to know what counts as a good credit score before you start, so you have a realistic sense of which end of the market you’re shopping in.
How do I check my options without damaging my credit file?
First, it’s a good idea to check your credit score so you have a general idea of what lenders will see. Then:
Run a credit card eligibility check, which uses a soft search rather than a full application
Shortlist only the cards you are shown a realistic chance of getting
Apply for one, not several
The distinction that matters is between a soft search and a hard search. A soft search is not visible to other lenders and does not affect your score. A full application records a hard search that other lenders can see.
You can read more in our guides: what is a soft credit check and does applying for a credit card affect your credit score.
What should I compare once I know my options?
Once you have a shortlist, compare these:
The APR, the cost of borrowing over a year including any compulsory charges. The lower the number, the better the rate.
When any promotional period ends, and what the rate reverts to afterwards.
Fees: annual fees, cash withdrawal charges, late payment charges and charges for spending abroad. Read more about credit card fees.
The credit limit offered, and whether that suits your needs.
Any rewards, and how useful these are to you.
One thing worth knowing about advertised rates: a representative APR is not a rate you are guaranteed. Under the FCA's definition of representative APR, is it the rate that at least 51% of successful applicants are expected to get or better. Up to 49% can be offered a higher rate, so the rate you end up with may not be the rate you saw advertised.
Matching the job to the card type
Once you know what you will be accepted for and whether you clear your balance, the type follows from the job you need the card to do:
Clearing existing card debt more cheaply points to a balance transfer card
Spreading the cost of a large planned purchase points to a 0% purchase card
Building or repairing a credit history points to a credit builder card
Spending abroad without a non-sterling transaction fee on your purchases points to a travel card, though cash withdrawals abroad usually still carry a charge
Everyday spending you always clear in full points to a cashback or rewards card
For what each of these actually involves, along with the trade-offs on each, read our full guide to the different types of credit cards.
FAQs
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
