Apply while you can! The once plentiful credit cards now in short supply

By Claire Stevenson Staff Writer Monday, 27 October 2008

Credit Cards Harder to Come By... What types of credit card are becoming harder to find? Low rate credit cards Ideal for making big-money purchases and includes cards offering 0% on purchases for a period of time. Ideal for people who want to spend sensibly and not get stung by hefty purchase interest rates. Our pick: Capital One Platinum Fixed Rate 8.5% APR Compare credit cards with low rates... Balance transfer rate cards Allow you to transfer debts from your credit card to a new card and pay off the debt without accruing interest on what you owe. Our pick: Virgin Money credit card Compare credit cards for balance transfers... Reward cards Offer cash back on purchases, air miles and discounts at certain retailers. Our pick: American Express Platinum credit card Compare credit cards offering cash back... Cards for people with a poor credit history Offer people with bad or no credit history the opportunity to repair bad credit ratings or build up history if they don’t have any. They usually carry high interest rates to reflect the risks the companies take by giving you credit. Our pick: Capital One Classic credit card Compare credit cards for bad credit scores... Related Personal Finance Features and News See our other recent related news stories: Compare credit cards: A begginers guide Compare credit cards - its easier and you're bound to find a better deal, especially using this simple guide for absolute credit card beginners.

THINKING of applying for a credit card but find your choice is limited?

It’s no wonder - credit card companies and banks are tightening their lending criteria and their credit belts, so the number of cards offering certain treats and perks could be dwindling.

This means that if you want a credit card that offers anything more than the stock standard benefits – whether it’s 0% on balance transfers or one that gives you something like cash back – you’d better get your skates on and apply now before choice narrows even further.

What type of credit card are you after and can you still get it?

Here’s Choose Money’s lowdown on cards that appear to be in short supply and dwindling:

Calling all shoppers

If you want a card that offers a good deal on when you buy goods then apply quickly. Cards offering a low interest rate on all purchases or 0% on purchases were seemingly ten-a-penny months ago.

Not so now. See what’s still available and whether you can get one that lets you pay off your retail bills without accruing interest.

The best low interest rate credit card is currently the Capital One Platinum Fixed Rate 8.5% APR

Switchers...

If you want a balance transfer deal lasting for a year or more but don’t want to be stung by a high transfer rate, there’s a handful that offer less than 3% on transfer fees.

Some offer a double-whammy 0% on balance transfers and purchases. But shoppers beware – while some offer 0% on purchases, you can’t repay any of these until you pay off your balance transfer in full. Check out our guide to see if balance transfer cards are your spending friends or foes.

The longest balance transfer credit card (with lowest transfer fee) is Virgin Money credit card, offering 0% for 16 months with a 2.98% transfer fee.

Hey big spender!

The benefits of a cash back credit card are simple - you earn cash every time you spend on the card.

But times they are-a-changin’ – there doesn’t seem to be that many on the market. Savvy shoppers will know to pay their balances off on time to avoid a card’s APR rates cancelling out any cash back percentages.

Pick carefully and you could be earning up to 25% cash back for spending at selected retailers. Rates will vary from company to company.

The best cash back credit card at the moment is the American Express Platinum credit card, offering as much 5% cash-back. The Egg credit card offers cash back up to 25% cashback, but only at certain retailers.

Frequent flyer or planning a trip abroad?

Air miles can help save a wad of cash, especially on long-haul flights. Savvy card hunters will want a decent number of air miles per £1 spent, plus perks such as VIP departure lounge access and express check-in.

Our choice for best credit card offering frequent flyer miles is the easyJet credit card.

And if you want a credit card offering 0% on foreign transaction fees when you go abroad, then apply for a Post Office credit card, pronto, as it’s currently the only one offering this particular deal.

Bad credit history?

Cards for emergencies are a great idea but not everyone can get one. If you want a credit card to help you out during lean times but don’t meet the banks’ ever-tightening lending criteria, there’s still a handful of specialist credit card providers that can help.

They all cap credit limits at £2,500 or under and have eye-wateringly high interest rates, so it is vital you pay off anything you spend on these cards in full and on time, and use them only for the benefit of either improving your credit score, or for the convenience of paying by card (eg. online shopping).

They should never be seen as a route to paying for something you cannot afford to pay off straight away.

The best credit card to help you rebuild a credit score or if you are being declined by other credit card issuers is the Capital One Classic credit card. Failing that, the Vanquis Visa card.