#The best credit card deals EVER

Published: 17 March 2011 Topic: News,Money,Credit Cards

Borrowers have seldom had it so good with some of the best credit cards deals ever launched this week.

From the longest ever 0% introductory period offered by a balance transfer card to two new generous cashback deals, there's been a flurry of activity in the credit card market. Here, we take a look at some of the new cards and what they offer.

Longest ever balance transfer card

Barclaycard has just launched the UK's first ever 20 month 0% balance transfer deal. just a month after it gave borrowers an unprecedented 18 months interest-free.

Now, new Barclaycard Platinum customers can transfer a balance onto the card and take advantage of this lengthy interest-free period, in exchange for a 3.2% fee.

Until 3rd May, new customers can receive a 25% reduction in the balance transfer fee if they are moving several balances across to the card. The highest balance transfer will incur a handling fee of 3.2%. with additional transfers seeing effective handling fees of 2.4% .

For example, a new Barclaycard Platinum customer applying to transfer one balance of 3,000 and two balances of 2,000 would have to pay a total transfer fee of 2.74%. saving them a total of 32 .

It is essential that borrowers clear their debt within the 20 month introductory period as after that they will pay a representative annual percentage rate (APR) of 17.5% variable on any remaining balance.

Barclaycard extended its interest-free period after both MBNA and Virgin matched its 18 months interest-free offer. MBNA charges a balance transfer fee of 2.88%. while Virgin charges 2.89% .

After the introductory offer finishes, the MBNA Balance Transfer Card charges a representative APR of 16.7% variable, while Virgin charges 16.8% variable.

So, if you have an existing credit card balance that you're paying interest on, switching to one of these cards could save you money, allowing you to concentrate on paying off the interest.

Kevin Mountford, head of banking at moneysupermarket.com, said: "I wouldn't be surprised to see other lenders react accordingly by launching similar deals, and with so many vying to go top of the best buy tables, we could see even longer deals emerge."

Best new purchase credit card

It's not only balance transfer customers who are benefiting from increased competition in the credit card market. Marks & Spencer recently soared to the top of the best buy tables for purchases, by offering 0% on new purchases for a market-leading 15 months - two months more than the next best deal, the Tesco Clubcard Credit Card .

The M S offer also comes with one of the most generous reward schemes going - you get one point for every 1 spent in its own stores and one point for every 2 spent elsewhere.

Every 100 points equals a 1 reward voucher that you can use in M S shops.

After the interest-free period ends, the card has a representative APR of 15.9%. so don't leave a balance after that point if you can help it.

Purchase credit cards are a great way to spread the cost of a large purchase, such as wedding expenses or a holiday, but you need to clear the balance within the introductory period to avoid paying interest.

Three top cashback credit cards

For many months, the American Express Platinum Cashback card has been the best cashback card on the market, paying 5.00% for the first three months and up to 1.25% after that, depending on the amount you spend.

The card offers 0% on purchases or the first six months, but the representative APR after that is a hefty 19.9% variable, so this won't be the right card for you if you don't think you'll be able to clear your balance within the 0% introductory period.

Two new MBNA cashback credit cards have now entered the fray and also offer generous cashback.

The MBNA American Express with Cashback pays a considerable 1.5% on most petrol and supermarket spending and then 0.75% on all other spending, while the MBNA Visa Card with Cashback pays 1.25% on most fuel and supermarket shopping, plus 0.50% elsewhere.

Both these cards charge a representative APR of 18.9% variable. Read our review for more details .

The American Express Platinum Cashback card responded by adding an extra 10 cashback incentive to all new customers, making it the best card in the first 12 months for most shoppers.

However, the MBNA Visa and MBNA American Express options remain the most competitive over the long term.

A word of warning.

It is worth remembering that credit card companies don't offer these great deals for no reason. Clearly they expect to make some money out of their new customers once the interest-free periods are up or despite the cashback incentive.

The only way to win is to play your cards carefully and not be tempted to spend more than you need, or leave a balance longer than you have to.

It's also worth bearing in mind that these market-leading deals will only be available to people with the very best credit scores. If your credit history isn't perfect then you'll only get rejected, which can damage your score further.

Check your credit file before applying and, if you're still not sure whether or not you're likely to qualify, use our credit profiling tool to get matched with suitable cards.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

We're free, independent and compare all UK credit cards, as well as offering exclusive deals you can't get anywhere else.

Contact moneysupermarket.com at Moneysupermarket House, St David's Park, Ewloe, Flintshire, CH5 3UZ. Moneysupermarket.com Ltd 2011