Best credit cards in the UK - Fees, rates, rewards

As a new resident or expat in the UK, choosing the best credit card UK options can feel tricky. Whether you're aiming to build credit, earn cashback, or enjoy travel perks, there’s a wide range of credit cards in the UK to explore. This guide will walk you through some of the best credit cards the UK has to offer, comparing interest rates, fees, and rewards to help you make an informed decision.

The final offer is determined by the bank and is beyond our control. The information provided is sourced from publicly available data. We do not promote credit cards; this text is for informational purposes only.

Different types of credit cards in the UK

Before we dive into specific recommendations, it’s good to know the main types of credit cards in the UK:

1. Standard credit cards: These are your typical cards used for everyday spending. They come with a credit limit and interest applied to any balance you carry over each month.
2. Cashback credit cards UK: Ideal for those who like to earn a little back on their purchases, these cards give you a percentage of your spending as cashback.
3. Secured credit cards in the UK: Perfect if you’re working to build or repair your credit. These require a deposit, which acts as security, and are more accessible for those without much credit history.
4. Travel credit cards: These cards are great for frequent flyers, offering rewards for travel-related spending and typically waiving foreign transaction fees.

What to consider when choosing a credit card

When comparing different top credit cards UK, it’s important to keep a few things in mind:

• APR (Annual Percentage Rate): This is the interest rate applied to any balance you don’t pay off. Lower APRs are better if you think you might carry a balance from month to month.
• Fees: Look out for annual fees, foreign transaction fees, and other hidden costs that can eat into any rewards or benefits.
• Rewards: Whether it’s cashback, travel points, or other perks, pick a card that matches how you usually spend your money.

Top credit cards UK for expats

1. Yonder credit card
   Tailored specifically for expats, Yonder doesn’t require a UK credit history. It’s designed for travelers, offering no foreign transaction fees and providing perks that cater to expats.

• No UK credit score required
• No foreign transaction fees
• Rewards and offers aimed at expats

1. Vanquis credit card
   A solid option for building credit, Vanquis has a relatively low APR and doesn’t charge an annual fee. Your credit limit can increase as you prove your reliability by making on-time payments.

• Low APR for credit-building
• No annual fee
• Higher credit limits with responsible use

1. Capital one platinum card
   This card is great for expats who want to avoid annual fees. You can also check if you're pre-approved without affecting your credit score, making it a safer option for those still building their credit.

• No annual fee
• Pre-approval without a credit score impact
• 24/7 customer support

1. Barclaycard forward credit card
   Ideal for those just getting started with credit, the Barclaycard Forward offers a 0% interest rate on purchases for the first three months. Plus, making on-time payments in the first year can reduce your APR.

• 0% interest for the first three months
• Lower APR for on-time payments
• Flexible credit limits

Applying for credit cards as a newcomer to the UK

As a new arrival in the UK, there are certain documents and information you’ll need when applying for a credit card UK:

• Proof of address: You’ll need something like a utility bill, bank statement, or tenancy agreement to confirm your UK address.
• Proof of income: Credit card companies may ask for payslips or bank statements, or require you to connect your bank account via Open Banking.
• Identity verification: This will usually involve showing your passport or visa.
• Credit history: While some cards don’t require a UK credit history (like Yonder), most lenders will still consider your financial background.

Tips for building your credit in the UK

Starting fresh with your credit score can take time, but here are a few steps that can help you along the way:

• Get on the electoral roll: Registering to vote can boost your credit score by confirming your identity and address.
• Open a UK bank account: Managing your account well by paying bills on time and avoiding overdrafts can help establish your creditworthiness.
• Use credit responsibly: If you open credit cards in the UK, aim to pay off your balance in full each month to build a strong credit history.
• Monitor your credit utilization: Try to use no more than 30% of your available credit, as high utilization can negatively affect your score.
• Regularly check your credit report: Keep an eye on your credit report with agencies like Experian, Equifax, or TransUnion to spot any errors and make sure your score is accurate.

Best cashback credit cards in the UK

For those who prefer earning cashback, here are a couple of the best cashback credit cards in the UK options:

• American Express platinum cashback card: Offers an impressive 5% cashback on eligible purchases for the first three months, making it one of the best cashback credit cards in the UK.
• Barclaycard rewards card: With no annual or foreign transaction fees, this card is a strong choice for frequent travelers who want to earn cashback on international purchases.

Secured credit cards in the UK for credit building

If you're starting out with limited or no credit history, secured credit cards in the UK are a great way to begin. A popular choice is the Vanquis Credit Card, which comes with a low initial limit and no annual fee, making it accessible for beginners.

Final thoughts

Finding the best credit card UK depends on your personal financial goals and habits. Whether you’re looking to earn cashback, build credit, or take advantage of travel perks, there’s a card out there for you. Expats may find cards like Yonder or Vanquis particularly helpful, while those focused on rewards might prefer options like the American Express Platinum.

It’s important to remember that while credit cards offer convenience, they also carry risks if not managed carefully. Always try to spend within your means and pay off your balance each month to avoid costly interest charges. With a little research and responsible use, the best rewards credit card UK can be a great tool for managing your finances and building your credit.