If you are looking to spread the cost of Christmas, or gain rewards for your seasonal shopping and extra consumer protection, then a credit card can be a great way to pay. As long as you can afford to repay the full credit balance before the interest charges kick in.
That’s why credit cards with long periods of 0% interest are popular with Christmas shoppers. You can also find credit cards which pay you cashback for everything you buy, which can really add up over Christmas.
Below we identify the best interest-free purchase credit cards, cashback cards and reward credit cards to use for your Christmas shopping in 2017.
The best 0% interest purchase credit cards
A 0% purchase credit card is a great choice to at least have on standby while you are out Christmas shopping.
These types of credit cards don’t charge any interest on what you have spent for a set period of time, giving you an opportunity to pay your Christmas debt over time.
The below table shows the best 0% cards currently on offer, based on how long the interest-free period is.
|Credit Card||0% period (months)||APR|
|Sainsbury’s Bank Purchase Credit Card Mastercard||32||18.9%|
|Halifax Online 30 Month Purchase Credit Card Mastercard||30||18.9%|
|Sainsbury’s Bank Dual Offer Credit Card Mastercard||30||18.9%|
|AA Dual Credit Card Mastercard||30||18.9%|
|Post Office Money Matched Mastercard||30||18.9%|
|Tesco Bank Clubcard Credit for Purchases Mastercard||30||18.9%|
|Santander Everyday Credit Card Mastercard||30||18.9%|
|MBNA All Round 30/30 Credit Card Visa||30||19.9%|
As the above shows, most of the 0% purchase credit cards offer up to 30 months interest free. Sainsbury’s have gone one step further and currently offer 32 months of no interest on your purchases.
The length of the 0% period is obviously important, but it is worth looking into what other benefits the cards offer. By taking a few months off the 0% period you could end up with a better deal overall depending on what else the card provides.
For instance, using the Sainsbury’s card can help you pick up more Nectar points and you can earn Clubcard points with the Tesco one. Very handy for those who regularly shop at Sainsbury’s or Tesco.
Also, on Santander Everyday Credit Card comes with something they call ‘Retailer Offers’. This gives you cashback when you shop at certain popular retailers – which you can tailor yourself when you sign up.
The best cashback credit cards
Cashback credit cards work by paying you back a certain percentage of what you spend. Much like cashback websites, this allows you to build up cash on the back of your Christmas spending.
Asda’s Cashback Plus Credit Card allows you to gain 2% cashback on everything you spend at Asda – which includes petrol and George. You will earn 1% cashback on everything else you spend, and also get 10% back when you spend on selected Asda insurance products.
To make it even more attractive to Christmas shoppers, Asda offers 15 months of interest-free balance transfers as well. It does come with a £3 per month fee, so is only really suitable if you’re planning on doing a lot of your seasonal shopping at Asda.
If the monthly fee puts you off, there is a free version of the card which gives you 1% cashback on your Asda spend and 0.5% on everything else.
You will likely find that most of the cashback credit cards are only for people with good credit ratings. If your credit rating isn’t quite high enough then the Aqua Reward Credit Card might be suitable. This gives you 0.5% cashback on everything you spend with no fee. The representative APR on it is 34.9%, so if you choose this option then make sure you only spend what you can repay each month to avoid the interest.