If you are trying to decide which credit card to go for, you may have been tempted by cards offering major perks such as long interest-free periods, cashback and rewards.
But what if you just want a reliable all-rounder that offers a consistently low rate, and doesn't drastically morph into a high-interest nightmare once the initial benefit has worn off?
If that is the case, the recently-launched MBNA everyday card could be just what you need. Here, we take a closer look at what it offers.
What's the deal?
MBNA's Everyday card is a straightforward card that will support your spending across the board. Instead of offering a major benefit on either balance transfers or purchases, it comes with substantial advantages on both.
For example, balance transfers made within the first 60 days of opening the account will benefit from a generous 17 months interest free. You will be charged a lower than average balance transfer fee of just 2% and spending on the card is also interest-free for the first seven months.
But even after this period is up, if you clear your balance every month, the low rate makes it an attractive option. You can rest assured that you're not going to be hit with rocketing interest and will know exactly where you stand.
What you see is what you get with this card – so when it promises an APR of just 11.9% (variable), this is exactly what you will get. Most other credit cards only have to offer the advertised representative rate to a 51% of successful applicants, whereas with the MBNA everyday card, everyone who is accepted benefits from the 11.9% deal.
There are a wide range of credit cards designed for everyday use available on the market so it's worth shopping around before making a decision.
The Sainsbury's low rate credit card, for example offers a market-leading representative APR of just 6.9%(variable.) It is therefore a strong contender if you are looking for a consistently low level of interest on balance transfers and purchases and has the added perk of no balance transfer fee.
However, this attractive rate is representative meaning it only needs to be offered to 51% of successful applicants. Therefore, you may find that you lose out if your credit rating is less than pristine.
Similarly, the Barclaycard Platinum Simplicity has a low representative APRs of just 7.9% (variable) and also comes with no balance transfer fee. The absence of this fee (as it's calculated as a percentage) could therefore afford you significant savings if you are looking to transfer a larger debt.
It also is a card which can be a handy tool for your daily life as it comes with the recently introduced Barclaycard Pay Tag.
This means that if you want to make a purchase of £20 or under, you simply hold your phone (which will have a pay tag sticker on the back) over a contactless reader – and hey presto! – the item will be paid for which is perfect for those busy days.
However, while these cards are good all-rounders it may be that you need specific help with one area of your finances.
For example, if you want to consolidate debt and need a significant length of time to pay it off, then the market leading Barclaycard Platinum with Extended Balance transfer offers a whopping 23 month interest free period. It comes with a balance transfer fee of 2.8% and a representative APR of 17.9% (variable.)
If, on the other hand, it's purchases that you need a helping hand with, you may want to consider a card such as the Tesco Clubcard Credit Card. This offers 16 months interest free, with the representative APR kicking in at16.9% after the 0% period ends.
What's the verdict?
The best card for you will depend on your personal circumstances but the MBNA card is a good option for everyday management of your cash.
You still get interest-free perks, but the APR that kicks in after the interest-free period is manageable and a good option if you want a consistently low rate.
However, if you need more time to clear a balance, then going for a card with a long 0% period could be a better option. Just try to clear your balance before the 0% period ends – or be prepared to be hit with hefty interest.
Applying for a particular credit card and then being rejected can be detrimental to your credit score. So to find out what cards you are likely to be accepted for, use MoneySupermarket's SmartSearch tool which will give you the information you need, without leaving a footprint on your credit file.
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.