How to choose a credit card in the UK

Jan 3, 2025 | Credit Cards

Editor, Credit Cards: Michelle Blackmore

Last Updated: June 26, 2025

With hundreds of credit cards on the market, it’s important to shop around and find one that aligns with your needs. Start by considering how you plan to use the card. Are you looking to make online or holiday purchases, manage bills, or spread out the cost of a larger expense? Whatever your intended use, think about whether you’ll pay off your balance in full each month or spread the payments over time.

If you can pay the full balance on time each month, you can benefit from interest-free periods. In this case, the interest rate may not be a priority, and you might want to explore cards offering perks like cashback. Even if you’re confident about paying in full, it’s smart to have a backup plan for months when that might not be possible.

If you plan to carry a balance and repay it over time, you’ll likely incur interest charges. In such cases, choosing a card with a lower interest rate could help keep borrowing costs down. Just ensure the regular repayments fit within your budget.

Finding the right credit card

Before choosing a credit card, it’s helpful to understand the main types offered in the UK. This knowledge will guide you in learning how to choose a credit card that best suits your needs. Each type serves different financial purposes.

Balance transfer credit cards: Balance transfer cards are designed for consolidating debt, allowing you to move existing balances to a new card with a 0% interest period, sometimes lasting up to 24 months. This option can save on interest if you pay off the balance before the promotional period ends.
0% Purchase credit cards: These cards offer an interest-free period on new purchases, making them ideal for financing large expenses without immediate interest. Look for cards with longer 0% introductory periods if you need extra time to pay off a major purchase.
Rewards credit cards: Rewards cards let you earn points, miles, or cashback on purchases. They’re ideal for those who regularly pay off balances and can enjoy perks like travel discounts, shopping vouchers, or cashback.
Credit builder cards: For those with little or no credit history, or who need to improve their

Compare interest rates and APRs: How to choose a credit card wisely

When learning how to choose a credit card, it’s crucial to compare interest rates and APRs. The interest rate on a credit card determines how much you’ll pay if you carry a balance after the statement period. Many cards in the UK offer 0% introductory rates for a specified period on purchases or balance transfers. After the promotional period, providers revert the card to its standard APR, which can vary widely depending on the provider and your creditworthiness. Always check the APR in the fine print, as this is what you’ll pay if you’re unable to pay off your balance in full.

Review fees and charges when choosing a credit card

Understanding how to choose a credit card also means being aware of potential hidden fees, which can add up quickly. Common fees to consider include:

Annual fees: Some premium cards charge an annual fee for rewards and perks. Make sure the benefits outweigh this cost if you’re considering a card with an annual fee.
Balance transfer fees: Most balance transfer cards charge a fee, often between 2% and 5% of the transferred amount. Compare fees across cards to minimize this cost.
Foreign transaction fees: If you plan to use your card abroad, look for a card with no foreign transaction fees to avoid extra charges.
Late payment fees: Paying late can result in a fee, and it may impact your credit score. Setting up automatic payments can help avoid these penalties.

Choosing credit cards with rewards

Understanding how to choose a credit card means evaluating whether a rewards card suits your spending habits and financial goals. Credit cards with rewards can be a great way to earn extra value, especially if you pay off your balance in full each month. Rewards programs can include:

Cashback: Some cards offer cashback on everyday spending, such as groceries, dining, or travel. These rewards can provide a nice bonus if they align with your spending habits.
Points and miles: Other rewards cards offer points you can redeem for travel, merchandise, or discounts.
Introductory bonuses: Some credit cards with rewards offer welcome bonuses if you meet spending requirements within a set period. These bonuses can add significant value, so they’re worth considering if you can meet the requirements without overspending.

How to choose a credit card with eligibility checkers

Before applying for a credit card, it’s wise to use free credit card eligibility checkers. An eligibility checker performs a “soft credit check,” meaning it won’t impact your credit score. This allows you to see the likelihood of approval for certain cards without taking on the risk of a formal inquiry. In general:

Good to excellent credit: High-reward and low-interest credit cards typically require a good to excellent credit score.
Fair credit: You may qualify for standard credit cards, but APRs and fees may be higher.
Poor credit: Credit builder cards are designed for those with lower scores or limited credit history, though they may have higher interest rates. It’s even more important to pay off your balance in full each month to avoid high interest fees.

Using soft credit card eligibility checkers is a responsible way to assess your options and avoid unnecessary applications that could impact your credit score.

Make a repayment plan

After learning how to choose a credit card and selecting the best one for your needs, it’s essential to plan your repayments. Healthy credit habits include never missing your monthly repayments and, ideally, paying off the full balance to avoid interest charges. Consider:

Setting up automatic payments: This can help you avoid missed payments and late fees, which can impact your credit score.
Budgeting for monthly payments: If using a 0% purchase card, divide the total by the 0% period months to create a manageable plan.
Paying more than the minimum: Whenever possible, pay more than the minimum to reduce your balance faster and save on interest.

How to get a credit card for the first time?

To get your first credit card, check your credit score and use an eligibility checker to see which cards you’re likely to qualify for. For first-time applicants, credit builder cards are often the best option, as they have lower requirements and help you build credit responsibly.

How do balance transfer credit cards work?

Balance transfer credit cards let you move existing credit card debt to a new card with a lower or 0% interest rate for a limited time. You’ll often pay a transfer fee. It’s essential to pay off the balance before the introductory period ends to avoid higher interest charges.

How does a 0% purchase credit card work?

A 0% purchase credit card lets you make purchases without paying interest for a set introductory period. This can be helpful for large purchases. However, remember to pay off the balance before the promotional period ends, or you’ll be charged the card’s standard APR.

How do credit cards work in the UK?

In the UK, credit cards allow you to borrow money up to a set limit to make purchases or even withdraw cash (although usually withdrawing cash comes with high fees). If you pay off your balance in full each month, you won’t be charged interest. However, carrying a balance will result in interest charges based on the card’s APR.

What is a soft credit check in the UK?

A soft credit check is a type of credit inquiry that does not affect your credit score. It’s commonly used by lenders to determine eligibility for credit cards without impacting your credit rating.

What is a good credit score in the UK?

A good credit score in the UK varies slightly by credit reporting agency. Generally, a score above 700 with Experian or Equifax is considered good, while scores above 800 are excellent. A good credit score improves your chances of being approved for low-interest and high-reward credit cards.

Conclusion: It’s worth learning how to choose a credit card

How to choose a credit card requires understanding your financial needs and comparing different options. Whether you need a card for a large purchase, to pay off debt, or to earn rewards, there could be an option that can meet your needs. Start by identifying your primary goals, then compare card features to find the best fit.

Remember to use your credit card responsibly. Paying off your balance in full each month and staying within your budget can help you avoid debt. Also, consider any additional fees, rewards, and interest rates. Seek support if you find yourself in a cycle of persistent debt.

At Mintify, we’re committed to helping you make informed financial decisions and use credit cards to your advantage.

To explore all your options and learn more about choosing the best credit cards, visit Mintify’s UK Credit Cards page. With the right approach, credit cards can be a valuable tool for managing your finances and achieving your financial goals.