The best credit cards for spending!

Rachel Robson shows you how to fight back against rising credit card costs....

Plastic is a rather marvellous invention, isn't it? Spending is just so much easier when all you have to do is grab your wallet and whip out the plastic.

But, the sad thing is, the cost of borrowing on a credit card is going up and up.  In fact, according to Moneyfacts, the average rate charged on credit-card purchases is now a massive 18.1% APR.

And at a time when more of us are struggling financially, I think this is pretty outrageous!

Pleasing purchases

In an ideal world, if you have a tendency to whisk out the plastic on a regular basis, you should pay off your balance in full each month. That way you'll avoid paying interest all together.

Unfortunately, that's just not possible for all of us.

But the good news is, there is another way to fight back against rising costs. And that's thanks to 0% on purchases credit cards.

Pick of the best

The great thing about a 0% on purchases card is that you'll avoid paying interest on any purchases you make during a set period.

The chart below shows some of the best 0% purchases deals on the market:

*Only available for over 50s.

All of these deals are pretty tempting. But the Tesco Clubcard Credit Card stands out head and shoulders above the rest, offering a 0% purchases period for a whopping 12 months!

What's more, if you're a keen Tesco shopper and enjoy collecting Clubcard points, the benefits of this credit card stretch even further. For every £4 you spend in Tesco, you'll collect five Clubcard points, and every time you spend £4 anywhere else, you can pick up one Clubcard point.

You can read more on this credit card in New top card for 0% purchases!

Best of both

If you're planning to transfer a balance onto your credit card as well as use it for spending, you'll need to be careful. And that's because most credit cards operate a nasty trick called negative payment hierarchy.

This sneaky tactic means your cheapest debts are paid off first and the most expensive debts are paid off last.

However, by applying for the Halifax All In One Mastercard, you'll beat this trick at its own game. This fabulous piece of plastic offers a nine-month interest-free period for both purchases and balance transfers. This means that whatever you do with the card, you won't pay any interest for nine months - and you won't have to worry about negative payment hierarchy.

The SAGA Platinum Card offers a similar deal, but you will have to be 50 or over to qualify.

Whichever credit card you choose, the important thing to remember is that you need to start paying off the debt as soon as you can. Otherwise, if you've still got debt to pay off by the time the interest-free period expires, you'll be hit by a rather hefty interest rate. Ouch!

The longer-term

If spending on your credit card is a necessity but you know you won't be able to pay off the balance in full by the end of the interest-free period, there are some longer-term alternatives.

The Barclaycard Simplicity Visa, for example, allows you to pay a fairly low interest rate of 6.8% on any purchases you make. This interest rate applies until you've paid off the balance in full and also applies to any balance transfers you make (2.5% transfer fee).

Be warned though that this interest rate is variable so it could change at any time.

Cracking cashback

Of course, if you religiously pay off your credit card bill in full each month, the interest rate on your credit card won't matter much to you.

But rather than continue to use a credit card that doesn't reward you for your loyalty, why not switch to a cashback credit card and get paid to spend?

The best cashback credit card on the market at the moment is the American Express Platinum card. This card offers an impressive 5% cashback on all purchases for the first three months (up to a maximum of £2,000 spend).

After that, you'll earn 0.5% cashback on the first £3,500, 1% on £3,501 to £10,000, and 1.5% on £10,001 plus.

The only downside to the credit card is that American Express isn't accepted everywhere. And don't forget that you must pay off the balance in full each month. Otherwise you'll be hit with an interest rate of 18.9% and that will far outweigh any cashback benefits.

Read the best cashback credit cards for more options.

So, what are you waiting for? If you've got some serious spending to do this summer, make sure you choose the right credit card for you - and fight back against those rising interest rates!

Compare all sorts of credit cards with lovemoney.com

More: Demolish your credit card debt | Ditch your debit card and you'll be better off