Best Cash Back Reward 0 Balance Transfer Fee Cards

When is a credit card better than a debit card?

Unless you're making a major purchase, you probably use your debit card for day-to-day spending, but using a credit card instead could give you extra perks.

The main difference between a debit and credit card is that when you use a debit card to buy something, the money comes out of your current account. You won't be charged interest unless you have gone into your overdraft. With a credit card, you are borrowing money, and will be charged interest on what you owe if you don't clear your balance each month.

But if you can be certain that you will always pay off your debts every month, then the chances are you may be better off using a credit card rather than a debit card. According to research by the UK Cards Association, 61% of all credit card users clear their balance in full each month.

Here, we take a look at some of the advantages of using a credit card over a debit card...

Earn some extra cash

As long as you always clear your monthly balance in full, you could be earning cashback on your spending.

Some canny cardholders use their credit card for all their monthly shopping and then repay the balance before they pay any interest, meaning they get the cashback but don't end up saddled with debt.

The market-leading offer is the new MBNA American Express Card with Cashback , which pays 1.5% on shopping at most petrol stations and supermarkets. You also earn 0.75% cashback on all spending elsewhere.

However, the representative annual percentage rate (APR) is 18.9% variable  so, whatever you do, don't leave a balance on the card month to month.

Another option is the MBNA Visa Card with Cashback , which pays 1.25% cashback on most fuel spending and supermarket shopping, plus 0.75% elsewhere. Just like the Amex card, it's APR is 18.9% variable , so don't be tempted to leave a balance at the end of the month.

Next best is the American Express Platinum Cashback card , which pays 5% on spending up to £2,000 in the first three months, meaning potential cashback of £100 .

After that, you earn up to 1.25% , depending on how much you spend. The representative annual percentage rate is 19.9% variable, so make sure you only use this card if you plan on leaving a balance after the first six months. During the first half a year, you pay 0% on purchases.

Chase Freedom Credit Card Review - $100 Bonus Cash Back

This is one of the best deals this card has to offer. You will receive this $100 cash back bonus after spending just $500 in your first three months of having this card. Qualifying transactions include purchases, balance transfers, and any checks that are used to access your account, and exclude cash advances.

0% introductory APR on balance transfers for 12 months. For the first full 12 months, you will enjoy a 0% introductory APR on all balance transfers. So if you have an existing balance on another card account which charges high interest and you want to stop paying interest on that balance, take advantage of this 0% balance transfer deal! After the intro period, your ongoing variable APR will be from 11.99% to 22.99%, depending on your credit score . Important note: Your balance transfers must be done during the first 30 days your account is open in order for you to enjoy this offer!

0% introductory APR on all your purchases for 6 months. You will enjoy the benefit of having a 0% intro APR on all your purchases for a whole 6 months, after that you will have to pay the regular variable APR, which starts from 11.99% to 22.99%, depending on your credit score. Remember that even though you’re in an introductory period and your APR is 0%, you should still make your payments on time to avoid incurring the penalty APR of 29.99%.

Receive 5% cash back in quarterly rotating categories, up to $1,500 each quarter. 5% cash back is a lot, and this is one of the most attractive benefits this card has to offer. This 5% deal actually averages out to 2% cash back on every category throughout the year , if you take into account a 1% cash back on 3 quarters for the year! You’ll be notified in advance which categories you will be able to benefit from each quarter and can then plan your spending for that year. It can help you save a lot of money if you use it to your advantage. This quarterly 5% program is subject to quarterly enrollment (you need to sign up each quarter!) and a maximum amount each quarter.

Here is the list of rotating categories for 2011 that qualify for 5% cash back, up to $1,500 each quarter:

This option lets you pay off big purchases (like TV, home improvement projects etc) on terms that best suit you and they will incur interest. You have the ability to set the number of payments or set monthly payment amounts to pay it off. Chase will calculate all these and indicate it on each statement so you can stay on track to meet your goals.