15 cracking credit cards

If you've not switched credit cards for a while you could be missing out. Check out these best buys of the moment.

If, like most people you have had the same credit card(s) in your wallet for years, you're likely to be able to get a better deal elsewhere. Lenders are always trying to tempt us, so it's worth keeping your eyes open for current deals. And depending on what you use your card for, there's bound to be something just right for you.

So here are 15 of my favourite cards - one is bound to suit you.

Cashback

If you always clear your balance in full but receive nothing in return you could be missing a trick. Use a cashback credit card and anything you spend on the card will earn a percentage back as actual cash. So, spend £600 per month on a card paying 1% cashback, for example, and you'll be looking at a lovely cheque for £72, this time next year.

My top cashback card picks of the moment would include the American Express Platinum cashback card, paying up to 5% cashback in the first three months on spending up to £2k. After this you'll earn up to 1.5% with no spend limit.

However, if you're a modest spender be warned - earn less than £12 cashback in twelve months and you won't get it rebated.

An alternative pick would be the Bank of Ireland's Moneyback MasterCard, paying a straight 0.5% on up to £15k annual spend.

Big spenders may like the Barclaycard Onepulse with Cashback Visa card, which pays 0.5% on spending up to £6k per month.

And Egg is paying a tempting 1% on its Money MasterCard, although be warned, it also charges a £1 per month fee - meaning that you'd need to spend £1200 per year just to break even.

Travel

We all know that withdrawing cash from an ATM with a credit card (whether in the UK or abroad) is expensive - your card provider will charge a (typically 2.5%) fee and you'll start racking up interest (at a higher rate than for spending) on the sum you withdrew, straight away.

But you probably thought making purchases with your credit card abroad was OK. Unfortunately, this may be far from true. Most lenders add a loading fee of 2.75% to whatever you have spent - so buy something for £100 and you'll actually pay £102.75.

But there are a few cards that spare us this fee. 

My top picks would include the Santander Zero card, which charges absolutely nothing on purchases, worldwide (what's more it doesn't charge a cash withdrawal fee, either).

The Post Office credit card also charges 0% on spending worldwide.

The SAGA card, charges 0% in Visa Europe regions and 1% elsewhere. And the Nationwide BS credit card charges 0% for a number of currencies, and passes on just the Visa charge (0.84%) everywhere else.

Alternatively, you could get a pre-paid currency card like the Caxton FX Currency Card. With this card, there are no fees for the card itself, no commission charges and no charges on items you buy abroad. Read more

Balance transfers

If you're paying interest on money borrowed on a credit card, a 0% balance transfer card could be exactly what you need. Move your balance to it and it will accrue no interest for up to 13 months, giving you some breathing space in which to save up the borrowed sum. Pay it back just before the 0% period runs out and you'll have saved yourself a fortune in interest.

Top cards include the Virgin credit card, offering 0% balance transfers for a whopping 16 months. Alternatively, here are some good non-Virgin balance transfer cards.

Note: Be warned - if you transfer a balance be sure to cut up the card straight after (so that you can't use it). Spend any money on the card and you'll be likely to be hit with negative payment hierarchy, meaning that the balance you transferred could start to accrue interest again.

0% on new purchases

Another way you can use your credit card is for borrowing. Provided you are sensible, by taking out a 0% card for new purchases you can use it for any large purchases, and get up to nine months to pay off the debt. Just be sure to make the minimum payment each month (direct debit is safer) and to have the lump sum ready to be repaid when the 0% period ends.

Top 0% picks include the Tesco Clubcard credit card, offering 0% for 12 months or the Marks & Spencer MasterCard, giving 0% for 10 months.

The Halifax All in One MasterCard, offering 0% on purchases for nine months, is also worth a look because it offers 0% on balance transfers for nine months - which means you can spend on it with no fear of negative payment hierarchy. Read more about this card.

Extras

And if none of the above interests you? Then check out the extras. Many credit cards offer perks to cardholders such as free loyalty points/shopping vouchers, free travel insurance, free purchase protection, free guarantees, and more.

£30 free vouchers

Barclaycard's Goldfish card, for example, currently offers £30 worth of points that can be redeemed immediately for vouchers for retailers such as Boots, John Lewis and Marks & Spencer. You simply need to spend £100 per month for the first three months. You'll also continue to earn one point per £1 spent on the card.

Guarantees

The Egg card has a guarantee - if you purchase something for over £50 and subsequently see it being sold more cheaply within a 30 mile radius (and within 30 days) it will refund the difference (although, don't forget that it also charges a £12 annual fee).

Free protection

And many cards, including the Nationwide BS Gold card, offer a 12 month extended warranty on any gas or electrical equipment you buy with the card that cost over £50 - simply call them to register your appliance. Plus it offers free purchase cover for any purchased item in case it is lost, stolen or damaged (and cost over £50).

So there you have a number of the ways you can use a credit card to your own advantage. Just remember the key rules - if you do a balance transfer, cut up the card. If it's a 0% card for new purchases, set up the minimum payment to be paid by direct debit.

And for the rest, make sure you always pay off your balance in full, each month, or the interest accrued will quickly outstrip the savings made!

Compare credit cards at lovemoney.com.

More: Don't make this costly mistake |0% balance transfers could be doomed.