Want a decent credit card? They're all 'exclusives' now

Like mortgages, good credit card deals are becoming more difficult to obtain.  A report from financial analyst Defaqto reveals that major banks are limiting their best credit card deals to existing customers and some 45 cards are now restricted.   

Bank of Scotland, Barclays, Halifax, HSBC, NatWest, RBS, Santander, and The Co-operative Bank all have credit cards that are available only to those who have an account with the bank.  Bank of Scotland's 'exclusives' for example, offers 15-month 0% balance transfer and 12-month 0%-purchase deals – but only available to customers with a current account into which they pay a minimum of £1,000 a month, or an Ultimate Reward account - for which they pay a £12.50 monthly fee.

This is all part of the high street banks' attempts to lock in customers who are a good credit risk but the effect is that many will find they have less choice.  Clearly in this situation it will pay to check out what your bank is offering first.

Those who are a good credit risk will have the widest choice of cards but for these users, many of whom pay off their card balances in full each month, the most important feature is often rewards and cashback. 

The best cashback card is from American Express which offers a market leading 5% cashback on spending for the first three months up to a maximum of £100 with up to 1.25% cashback thereafter.  The long term cashback rate varies according to spend on the card and is 0.5% for amounts up to £3,500, 1% from £3,501 to £7,500 and 1.25% above £7,500.

The only problem is that not a lot of high street retailers accept Amex – although if you travel a lot and spend large sums on flights and hotels this card is definitely worth having.  It also offers 0% interest for the first six months on purchases if you do use the credit facility.  If you use the credit facility you will be paying 19.9% on purchases.

The next best is Capital One’s World Mastercard which pays a 1% cashback on all spending and has an interest charge of 17.26% on purchases.  Although this card does not have an introductory 0% on purchases or balance transfers the 1% cashback on all spending is valuable and you also receive an extra £10 cashback every January. Cashback is not paid on balance transfers or cash advances.