Choosing the Best Credit Cards in 2024

If you’re looking for a credit card in 2024, you might be feeling overwhelmed with choice. As with any financial decision, it’s natural to want to research your options thoroughly before choosing the best credit product to suit your individual circumstances.

Is a credit card right for you?

Before searching for the best credit card, it’s a good idea to consider whether a credit card is the right financial product for you. Whilst credit cards can be useful for many reasons, it’s important to be aware of their advantages and disadvantages before entering into a credit agreement.

Advantages:

• If used responsibly, having a credit card could contribute to building your credit score over time. While a credit card is only one part of your overall credit profile, making monthly repayments on time and staying well within your credit limit could have a positive impact on your score. Bear in mind you will also need to keep on top of any other credit accounts you have at the same time.


• Credit cards offer flexibility. You can make purchases as and when required.


• Under Section 75 of the Consumer Credit Act, purchases between £100 and £30,000 made on credit cards are usually protected. This means that you could make a claim to your credit card provider for a refund if the goods or services you receive are faulty, or you do not receive them at all.

Disadvantages:

• The interest rate you are offered will depend on various factors, including your affordability and credit score. If you find yourself unable to meet your repayments, interest could build up and lead to increased financial strain.


• Like other forms of credit, late or missed payments will damage your credit score so it’s important to only borrow what you need and what you can afford to repay to avoid getting into unmanageable debt.

Best credit cards for your purpose

Ultimately, to compare the best credit cards in 2023 you must first decide why you need a credit card. There are several different purposes and the best credit card for you will depend on the reason why you are looking to apply for one. Some types of credit card include:

• Purchase credit cards can be used for spreading the cost of purchases over time – usually subject to interest. Some purchase credit cards offer introductory promotional periods of 0% APR for new customers. This means if you make a purchase on your credit card you will not be charged interest during this time; you will, however, still need to make at least your minimum repayment every month. Once your promotional period has ended, any balance on your account, plus any further purchases you make, will be charged interest at your standard rate unless you pay your balance in full every month on time.


• Credit building credit cards are like purchase cards in that they can be used to spead the cost of purchases. hey may be more accessible for people looking to build or re-build their credit history.The interest rate offered on credit building credit cards tends to be higher than other cards.


• Balance transfer credit cards may be usually the best credit card or people looking to lower their monthly repayment amounts, as they typically offer an introductory promotional interest rate. By transfering a balance from an existing card with a higher interest rate to one with a lower interest rate, customers may be able to clear their outstanding balance quicker.


• Rewards credit cards are usually a more premium type of credit card available to those with better credit scores.These credit cards offer rewards on everyday spending, such as cashback, air miles, or points which can be exchanged for vouchers. Be mindful, though, as some rewards credit cards can incur annual fees. This could potentially outweight any benefits gained through any rewards you receive; it’s important to bear this in mind when choosing the best credit card for your circumstances.

Choosing the best credit card in 2023 requires careful consideration of your personal financial circumstances and your reason for wanting a credit card. While credit cards can offer benefits, such as building your credit score and protection for purchases, it's important to be aware of the potential risk, such as higher interest rates. You should never borrow more than you need, and you should always be sure you can comfortably afford the monthly repayments before applying for any financial product.