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Sarah Willingham

My Piggy Pick
of the week

1-minute guide to Credit cards for families

Having a baby isn’t cheap. The average family spends £1,800 before their baby even arrives. if you borrow £1800 on a market leading card it will cost you £75 per month and be paid off in 2 years INTEREST FREE

Credit cards can help you spread costs, or can offer cashback rewards. Choose a credit card that is suitable for your circumstances

IMPORTANT! Never forget that the debt MUST be repaid at some point, so only ever spend what you can afford to repay

 
 
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30 DAY FREE TRIAL WITH A £15 MOTHERCARE VOUCHER WHEN YOU PAY FOR YOUR FIRST MONTH (NO CONTRACT) check this out
5% CASHBACK AT SANISBURY'S FOR THE FIRST 3 MONTHS. 1% CASHBACK IF YOU SPEND £250 AT SAINSBURY'S AND £250 ELSEWHERE PER MONTH. LOW INTEREST RATE check this out
10 NECTAR POINTS PER £1 SPENT AT SAINSBURY'S FOR FIRST 3 MONTHS, 4 POINTS AFTER. LOW INTEREST RATE check this out
FREE KINDLE WITH THE HTC WINDOW PHONE 8S ON T-MOBILE, 500 MINS, UNLIMITED TEXTS, UNLIMITED DATA check this out
FREE 30 DAY TRIAL WITH CREDIT EXPERT INCLUDING A FREE CREDIT CHECK check this out

Need to know

  • Cards offering interest free periods on purchases are a great way of spreading the initial costs of preparing yourself for parenthood. Work out a repayment plan before you take on the debt though
  • If you can afford to repay your balance each month, then look at cards that offer you rewards. Cashback cards often have 5% introductory offers. That’s £100 if you spend £2000. Certain cards also focus on petrol or supermarket shopping cashback rewards, or airmiles
  • Cards from supermarkets give loyalty points for purchases and you can then use your points to help pay for your weekly shop, or even better, save them up for treats
  • Providers will base their approval and credit limit on your current earnings, so if you’re on maternity pay, expect to be offered a lower limit
  • Your credit rating (or credit score) will affect your ability to get the best cards. There are credit cards out there even if you have a poor credit score so don’t give up. There are also specialised cards that can help you build up a good credit score
  • Applying online takes between 5 and 9 minutes, and often you’ll hear within 60 seconds. Most applications now accept electronic signatures, but some will send you documents in the post
 
 

Credit Cards

I want a credit cards for: 

Barclaycard

Why we like it:

  • 26 month 0% balance transfer
  • 0% interest on purchases for 6 months
  • instant online decision
  • contactless payment technology

Watch out:

  • 18.9% APR
  • transfer fee 3.5%
  • need a good credit rating
  • minimum £20,000 salary
  • no balance transfer from other Barclaycard

What happens next

 
check this out

Representative Example: representative 18.9% APR (variable) if you spend £1,200 at 18.9% annual purchase rate (variable)

Barclaycard

Why we like it:

  • 25 months 0% balance
  • reduced 2.4% transfer fee (normally 3.5%)
  • 0% interest on purchases for 6 months
  • instant online decision
  • contactless payment technology

Watch out:

  • 18.9% APR
  • need a good credit rating
  • minimum £20,000 salary
  • no balance transfer from other Barclaycard

What happens next

 
check this out

Representative Example: representative 18.9% APR (variable) if you spend £1,200 at 18.9% annual purchase rate (variable)

Tesco Clubcard

Why we like it:

  • 0% interest for 25 months
  • 9 months interest free purchases
  • earn Clubcard points for all spending (the equivalent of 1.25% cashback on Tesco shops)

Watch out:

  • 16.9% APR
  • 2.9% transfer fee
  • need good credit history

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

Halifax

Why we like it:

  • 25 month 0% balance transfer
  • 3 months 0% on purchases

Watch out:

  • 18.9% APR
  • variable APR after offer period
  • 3% handling fee

What happens next

 
check this out

Representative Example: representative 18.9% APR (variable) if you spend £1,200 at 18.95% annual purchase rate (variable)

Natwest - Platinum Extended

Why we like it:

  • 24 month 0% balance transfer
  • 6 months interest free on purchases
  • Transfer freely to any bank account in the UK

Watch out:

  • 17.9% APR
  • 2.9% balance transfer fee
  • minimum £10,000 salary
  • no balance transfer from other Natwest or RBS cards

What happens next

 
check this out

Representative Example: representative 17.9% APR (variable) if you spend £1,200 at 17.95% annual purchase rate (variable)

RBS - Platinum Extended

Why we like it:

  • 24 month 0% balance transfer
  • 6 months interest free on purchases
  • Transfer freely to any bank account in the UK

Watch out:

  • 17.9% APR
  • 2.9% balance transfer fee
  • minimum £10,000 salary
  • no balance transfer from other Natwest or RBS cards

What happens next

 
check this out

Representative Example: representative 17.9% APR (variable) if you spend £1,200 at 17.95% annual purchase rate (variable)

Tesco Clubcard

Why we like it:

  • 0% interest for 16 months
  • 0% interest for 9 months on balance transfers
  • earn Clubcard points for all spending

Watch out:

  • 16.9% APR
  • need good credit history

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

Halifax

Why we like it:

  • 0% interest for 15 months for purchases and balance transfers

Watch out:

  • 17.9% APR
  • offer period can decrease depending on credit rating
  • very high interest rate to withdraw cash

What happens next

 
check this out

Representative Example: representative 17.9% APR (variable) if you spend £1,200 at 17.95% annual purchase rate (variable)

Barclaycard

Why we like it:

  • 0% interest for 14 months for purchases and balance transfers
  • contactless payment technology

Watch out:

  • 18.9% APR
  • very high interest rate to withdraw cash
  • 2.9% transfer fee
  • no transfers from other Barclaycards

What happens next

 
check this out

Representative Example: representative 18.9% APR (variable) if you spend £1,200 at 18.9% annual purchase rate (variable)

Halifax

Why we like it:

  • 0% interest for 15 months for purchases and transfers
  • if you bank with Halifax you may be pre-approved

Watch out:

  • 17.9% APR
  • offer period can decrease depending on credit rating
  • very high interest rate to withdraw cash

What happens next

 
check this out

Representative Example: representative 17.9% APR (variable) if you spend £1,200 at 17.95% annual purchase rate (variable)

Nationwide select

Why we like it:

  • 0% on balance transfers for 20 months
  • 0% on purchases for 12 months
  • cashback of 0.5% on all sterling purchases
  • no commission on purchases abroad

Watch out:

  • Must have or open Nationwide FlexAccount
  • 12.9% APR
  • 3.1% handling fee or min. £5.00 on balance transfers

What happens next

 
check this out

Representative Example: representative 12.9% APR (variable) if you spend £1,200 at 12.9% annual purchase rate (variable)

Tesco Clubcard

Why we like it:

  • 0% interest for 16 months
  • 0% interest for 9 months on balance transfers
  • earn Clubcard points for all spending

Watch out:

  • 16.9% APR
  • need good credit history

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

Barclaycard

Why we like it:

  • 0% interest for 14 months for transfers and purchases
  • contactless payment

Watch out:

  • 18.9% APR
  • very high interest rate to withdraw cash
  • no transfers from other Barclaycards

What happens next

 
check this out

Representative Example: representative 18.9% APR (variable) if you spend £1,200 at 18.9% annual purchase rate (variable)

Tesco Clubcard

Why we like it:

  • earn Clubcard points for all spending
  • converting points to vouchers can be worth the same as 1.25% cashback
  • 0% interest for 16 months
  • 0% interest for 9 months on balance transfers

Watch out:

  • 16.9% APR
  • need good credit history

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

Barclaycard Freedom Rewards card

Why we like it:

  • £50 worth of points if you spend £500 in the first 3 months
  • collect points on all purchases
  • double points on petrol and supermarket spending

Watch out:

  • no opening purchase offer
  • 18.9% Apr

What happens next

 
check this out

AA

Why we like it:

  • 0% on purchases for 10 months
  • 0% balance transfer for 12 months
  • double points on fuel purchases
  • AA members can earn upto 4% back

Watch out:

  • 16.9% APR
  • 3% handling fee for balance transfers
  • no transfers from Virgin or MBNA cards

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

Sainsbury's Nectar

Why we like it:

  • earn Nectar points wherever you spend
  • 10 points per £1 for first 3 months
  • 0% on purchases for 6 months
  • 0% on balance transfers for 15 months

Watch out:

  • 17.9% APR

What happens next

 
check this out

Representative Example: representative 17.9% APR (variable) if you spend £1,200 at 17.95% annual purchase rate (variable)

Sainsbury's low rate nectar card

Why we like it:

  • 7.8% APR Representative variable
  • 10 Nectar points per £1 spend at Sainsbury's for the first 3 months
  • 4 points per £1 after
  • 1 point for every £5 spent elsewhere
  • no annual fee

Watch out:

  • rewards from Sainsbury's spending capped at £1000 spend per month
  • no balance transfer fee BUT no interest free period for transfers or purchases

What happens next

 
check this out

Virgin Atlantic White

Why we like it:

  • No annual fee
  • 6 month 0% balance transfers
  • 1 mile for £1 on AmericanExpress or £2 on Visa
  • Bonus miles introductory offer

Watch out:

  • 17.9% APR on purchases
  • no balance transfers from MBNA cards

What happens next

 
check this out

Representative Example: representative 17.9% APR (variable) if you spend £1,200 at 17.9% annual purchase rate (variable)

Amex British Airways

Why we like it:

  • no annual fee
  • comes with travel accident insurance
  • 1 Avios point for £1 spend
  • 3,000 bonus point introductory offer

Watch out:

  • 15.9% APR
  • no balance transfer

What happens next

 
check this out

Representative Example: representative 15.9% APR (variable) if you spend £1,200 at 15.9% annual purchase rate (variable)

Virgin Atlantic Black

Why we like it:

  • 2 miles per £1 on AMEX
  • 1 mile per £1 on Visa
  • bonus miles introductory offer

Watch out:

  • £140 annual fee
  • 52.1% APR

What happens next

 
check this out

Amex British Airways Premium

Why we like it:

  • 1.5 Avios for virtually every £1 spent
  • bonus miles introductory offer
  • travel insurance
  • companion voucher when you spend £10,000

Watch out:

  • annual fee of £150
  • interest of 56.4%

What happens next

 
check this out

Santander 123

Why we like it:

  • 1% cashback at supermarkets
  • 2% cashback at department stores
  • 3% cashback at petrol stations
  • up to 56 days interest-free credit on purchases when you pay your balance in full and on time each month

Watch out:

  • 22.8% APR
  • petrol cashback limited to £300 spend per month
  • £24 annual fee after first year

What happens next

 
check this out

Representative Example: representative 22.8% APR (variable) if you spend £1,200 at 18.9% annual purchase rate (variable): includes £24 annual fee

American Express Platinum cashback

Why we like it:

  • 5% cashback for 3 months
  • standard rate of 1.25% (doubled during anniversary month)

Watch out:

  • 18.7% APR
  • £25 annual fee
  • need excellent credit rating

What happens next

 
check this out

Representative Example: representative 18.7% APR (variable) if you spend £1,200 at 14.0% annual purchase rate (variable): includes £25 annual fee

Barclaycard High 5

Why we like it:

  • 6% cashback on five biggest monthly purchases in first 3 months
  • Up to 2% cashback on five biggest monthly purchases ongoing
  • 0.5% cashback on other purchases

Watch out:

  • Confusing terms & conditions on what qualifies for what level of cashback
  • 24.8% APR
  • £24 annual fee

What happens next

 
check this out

Representative Example: representative 24.8% APR (variable) if you spend £1,200 at 19.9% annual purchase rate (variable): includes £24 annual fee

Sainsbury's low rate cashback card

Why we like it:

  • 7.8% APR variable
  • 5% cashback on Sainsbury's shopping for first 3 months
  • £5 (1%) cashback when you spend £250 at Sainsbury's and £250 elsewhere per month
  • no annual fee

Watch out:

  • cashback for first 3 months capped at £50 a month
  • no balance transfer fee BUT no interest free period for transfers or purchases

What happens next

 
check this out

Aqua Reward

Why we like it:

  • 3% cash back on all purchases
  • Suitable if you have a poor credit rating

Watch out:

  • Cash back limited to £100 a year
  • High APR starting at 34.9%

What happens next

 
check this out

Representative Example: representative 34.9% APR (variable) if you spend £1,200 at 34.92% annual purchase rate (variable)

MBNA

Why we like it:

  • 0% on money transfers for 22 months
  • 0% on balance transfers for 22 months
  • 2% balance transfer fee from cards
  • contactless technology

Watch out:

  • 16.9% p.a.
  • 4% handling fee on overdraft transfers
  • no transfers from MBNA cards

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

AA Members Rewards

Why we like it:

  • 0% balance transfer for 12 months
  • 0% on purchases for 10 months
  • double points on fuel purchases
  • AA members can earn upto 4% back

Watch out:

  • 16.9% APR
  • 4% fee on money transfers
  • 3% handling fee for balance transfers
  • no transfers from Virgin or MBNA cards

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

AA

Why we like it:

  • 0% money & balance transfer for 16 months
  • 0% on purchases for 3 months
  • double points on fuel purchases
  • AA members can earn up to 4% back

Watch out:

  • must be a homeowner with good credit rating
  • 17.9% APR
  • 4% fee on money transfers
  • no transfers from Virgin or MBNA cards

What happens next

 
check this out

Representative Example: representative 17.9% APR (variable) if you spend £1,200 at 17.9% annual purchase rate (variable)

Halifax Clarity

Why we like it:

  • No fees on ATM cash withdrawals
  • No fees on balance transfers
  • No fees on any usage anywhere worldwide

Watch out:

  • 12.9% APR
  • Interest rates range from 12.9% - 21.9%
  • no interest free period on cash advances and balance transfers

What happens next

 
check this out

Representative Example: representative 12.9% APR (variable) if you spend £1,200 at 12.95% annual purchase rate (variable)

Saga Platinum

Why we like it:

  • 0% on purchases for 9 months
  • 0% foreign currency fee
  • 0% on balance transfers for 9 months

Watch out:

  • 11.9% APR
  • Only available to over 50s

What happens next

 
check this out

Representative Example: representative 11.9% APR (variable) if you spend £1,200 at 11.3% annual purchase rate (variable)

Nationwide select

Why we like it:

  • 0% on balance transfers for 20 months
  • 0% on purchases for 12 months
  • cashback of 0.5% on all sterling purchases
  • no commission on purchases abroad

Watch out:

  • Only for existing Nationwide FlexAccount holders
  • 12.9% APR
  • 3.1% handling fee or min. £5.00 on balance transfers

What happens next

 
check this out

Representative Example: representative 12.9% APR (variable) if you spend £1,200 at 12.9% annual purchase rate (variable)
 
 

The inside track

  • It is worth repeating, only spend what you can afford to repay
  • Set up a direct debit for an amount you choose, not just the minimum that card providers suggest – credit card companies are really naughty and often set the minimum payments very low so you end up with a HUGE balance that you cant afford to pay off, so change it to make sure it’s all paid off. If you can’t afford to pay your card off in full each month, set a repayment date and stick to it. If you have a card with an offer period, make sure the money is repaid within this time
  • Credit card providers have a joint responsibility with the seller for goods and services purchased with the card. So if goods you buy are faulty and the seller is being unhelpful, get the credit card company involved
  • Your credit rating can change every time you apply for credit in any form – credit cards, a loan etc. Applying for more than 4 new sources of credit lowers your credit rating. It is REALLY worth checking your score. Credit expert {link} has a free trial that is a good starting point