Deal yourself the right credit card

The credit card market is hotting up. Three big players, Halifax, Capital One and Citibank, are introducing new deals in a bid to woo credit-hungry customers. All three cards offer something above standard deals but whether any of them is right for you depends on your circumstances and how you use your card.

If you plan to spend on your card and cannot always pay off your balance each month, Halifax's Purchase Card offers a market-leading deal. As well as a 15-month interest-free period, customers are charged 0 per cent on balance transfers for six months – although a 3 per cent balance transfer fee applies.

After the interest-free period the card reverts to a typical APR of 14.9 per cent, which compares well with the average figure of 16.5 per cent, according to MoneyExpert.com, the price comparison service.

"If you're a big spender and want to avoid counting the cost of letting purchases sit on the plastic for too long, the new Halifax card is a safe bet," says Sean Gardner of MoneyExpert.

"Of course, spending too much on your card without paying it back is a dangerous game. So big zero per cent deals on purchases can turn out to be a red herring if you end up with a large balance at the end of the special deal. A charge of 14.9 per cent on a balance of £3,000, for example, will see you pay £447 in annual interest."

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