The Rate Tart

Let me start by saying that everyone's circumstances are different. With that disclaimer firmly in place, let's talk turkey.

Say you spend around £1,000 a month on credit cards, and you can afford to pay off this amount in full every month. Over a year, a cashback credit card will leave you more than £100 worse off than a 0% on purchases card.

Here's the maths. A yearly spend of £12,000 on a typical cash back card would earn me 4% cashback for 3 months and 1% for 9 months. Assuming I pay off the total debt each month, that would give £210 cash back.

The same spend on the Natwest 0% credit card paying a minimum of 2% of my balance each month would mean that I need to make payments of £1,236. At the end of the 12 months, I'd need to make a final payment of £10,764 to clear the outstanding balance.

So, instead of paying in £12,000 over a year, I can pay just £1,236 and invest the rest in high interest savings account. Assuming I used the IceSave account at 6.30% AER, this would earn me more than £300 over the next twelve months and make me more than £100 better off.

Of course, this is a more risky strategy and means I have to be on the ball with my repayments. Equally, I have to avoid the temptation to withdraw cash, use credit card cheques and overspend because if I did, I'd end up paying fees and charges. And that would quickly overtake my £100 saving.

It's tempting to think that by just using your rewards credit card, you will earn back something you would otherwise have to pay money for.

But its worthwhile thinking carefully before you pick a card.

Rewards cards tend only to make sense if you pay off your balance in full each moth. Otherwise the interest charges and fees will mean any reward you get is quickly outweighed by the penalties.

Equally, rewards are typically only offered on purchases made on the card, and not on cash withdrawals or on credit card cheques - so as well as being an expensive option, this will also not build your rewards.

It's also worth thinking about how often you will use your card, and the amount of money you are likely to spend on the card. Rewards cards work on the principle that the more you spend, the more rewards you are offered. But if you don't spend much on your card, you may find that a 0% on purchases card would give you a better deal in the real world.

Finally, the amount of cash back, air miles, money off in store and other rewards offered by each card varies. So it always pays to shop around.

The Westminster Standards Watchdog is reportedly considering a complaint by a BNP politician over Speaker Michael Martin's use of air miles on flights for his family.

The air miles were earned on official business but used to fly members of Martin's family between London and Glasgow for a new year holiday. Whilst the Speaker has not broken any rules, Members of Parliament are advised to use air miles to offset the cost of future flights if possible.

If you think this all sounds more like political opportunism than genuine corruption we doubt you are alone. Is it really a valuable use of tax-payers money to investigate how an air miles credit card is used?

Think about it. If you travel for work, do you really expect to use the air miles gained to save the boss some expenses or do you treat it as a nice perk? If you pay expenses on a cash back credit card do you deduct the cash back from your expenses claim.

Thought not.

So how about we all get a bit less hysterical and focus the resources of the police and parliament on genuinely dodgy dealings. And don't even get us started on the BNP trying to claim the moral high ground...

Airline Flybe is about to launch a "Spend and Fly" reward credit card that offers flights as an incentive to spend.

Details haven't yet been published, but it looks like alongside the raft of promotional offers "from selected partners", Flybe are publicising free flights and the right to "jump the queue with new promotions".

Some details of the offer are emerging: in return for spending £4,000 on the card, customers will get a return flight to any destination in Europe.

Nothing has been published about the charges and terms and conditions for the card yet, so we can't form any view on value. But if you regularly fly with Flybe and make all of your payments in full every month, this is a credit card that may be worth considering.

Shoppers up and down the country are looking for bargains in the January sales that provide rewards such as Nectar or the Sony Card which provides fantastic incentives for any purchases on Sony products.

Other cards such as the Capital One cashback card pay 4% cashback on all purchases for the first 3 months.

This could save shoppers significant amounts of cash.

Visit the Cashback and Reward section of TheRateTart to see what rewards you can get from the shopping you require.

New customers are worth a lot to credit card companies and you often find card companies offering something extra such as a free flight, an Amazon or other gift voucher to new card customers to win your business.

These give-aways can often be redeemed without costing you a penny. Also, many card suppliers offer 3 or 4% cashback on any spending you process through them and as long as you pay these off in full each month so as not to incur any interest, you can make some serious money here.

To take advantage of these offers you are usually required to spend on the cards but fortunately there are often no minimum spend requirements so whatever you spend, as long as you pay off in full, will earn you money back.

All shopping including supermarkets, mail-order or purchasing online can benefit from these giveaways. As long as you pay off the card in full each month you will not pay any extra interest.

For example choose the Virgin Atlantic Credit Card to get 1 Flying Club mile for every £1 spent, 2 Flying Club miles for every £1 spent direct with Virgin Atlantic or Virgin Holidays 3,000 bonus Flying Club miles upon first spend.

Alternatively, choose the Capital One Cashback Card to receive a massive 4% cashback on all purchases in first 3 months.

Visit TheRateTart's CashBack and Awards, or the AirMiles section to compare the best give-aways.

Sainsbury's have announced the launch of a new credit card which provides Nectar points equivalent to two per cent cash-back on all purchases within the supermarket.

In what TheRateTart is certain must be a complete coincidence, the supermarke bank also released a report promoting the benefits of cash-back and rewards credit cards.

Head of cards, Donald MacLeod, said that he expected the industry to focus on loyalty more in the coming months, moving away from introductory interest rates as savvy consumers start looking closer at the small print.

He suggested that customers are now "reasonably aware" of the pitfalls of introductory rates. "They're not particularly new…so there's been a reasonable period for everyone to become acquainted with them and how they operate."

He added: "What we might be seeing is a move away from introductory rates on interest to an introductory offer around loyalty."

New research from the supermarket bank reveals that 41 per cent of all credit cards currently offer some form of financial reward.

Here at TheRateTart we believe that the right credit card for you is determined by your spending haits, financial situation and financial goals. Whilst a cash-back credit card will be great for some customers it could be a financial disaster for others.

To understand how the different offers work and locate the best credit card deal for you, go straight to TheRateTart Guide to credit cards here.

While the complexity of cash back offers on credit cards has grown, plastic in this ilk is still a useful thing to have, according to a report by consumer finance firm Defaqto, entitled Credit Cards in the UK.

Acording to the report the number of these offers has fallen and those that remain are becoming more difficult to compare.

Consumers have to wade through a raft of terms and conditions, special offers and restrictions before they can understand what is really on offer.

Principal consultant of banking David Black, author of the report, said: "Cash back credit cards offer a genuine return for card holders but are only appropriate for those people who always pay off their entire balance every month."

He went on to suggest that customers could make the most of cash back offers by using more than one card "selectively".

American Express has thrown down the gauntlet to current cashback credit card market leaders Capital One. Could this be anything to do with the certain splurge on credit cards in the run up to Christmas we wonder?

Capital One offers 4% cashback for three months, followed by 1% thereafter, whereas the American Express deal provides 5% for the first three months, followed by tiered rates ranging from 0.5% to 1.5%, dependent on your annual spend. Neither card imposes a maximum cashback limit and both pay out on an annual basis.

So what does that mean in terms of money in the bank. For someone spending £1K per month on day to day expenses (shopping, travel etc) for 12 months , Capital One would yield £210 versus £247.50 with American Express. Not bad just for spending what you have to spend anyway.

But as always, there is a catch.

The Standard APR on most cashback credit cards is between 14% and 17%. So if you don't pay off your balance in full each month don't even consider cashback. The payments you make in interest will quickly cancel out the cashback you can earn.

Sadly these 'gotcha' deals are all too common in the finance industry, meaning it's important for consumers to look beyond the headline offers and understand what they are really signing up to.

It may seem like a long time until Christmas. But with credit card companies taking up to 6 weeks to process new applications, now is the time to take a look at what's in your wallet. Having the wrong plastic could mean your festive spending leaves you with a serious new year hangover.

To find the best Christmas Credit Card for your needs read on.

It may seem like a long time until Christmas. But with credit card companies taking up to 6 weeks to process new applications, now is the time to take a look at what's in your wallet. Having the wrong plastic could mean your festive spending leaves you with a serious new year hangover.

To find the best Christmas Credit Card for your needs read on.

If you are sure you can pay off any spending straight away, go for a cash back or rewards deal. These offer you either cash or points as a percentage of your spending. Typically points can be spent on money off flights, shopping, holidays and other treats.

At time of writing the best cash back deal on the market is the Capital One Cashback Card, offering 4% cash-back for the first 3 months. Whilst the MBNA Sony Card is offering a free MP3 Player to new customers for a limited period.

For those of you planning to pay for Christmas over a few years, go for a 0% interest on purchases credit card. These effectively provide you with an interest free loan for the duration of the 0% offer. As these often come packages with a 0% on balance transfers offer, you may also want to consider transferring any existing credit card debt to avoid paying the standard APR. At present one of the best 0% on purchases credit cards is the Capital One Platinum Card, with an interest free period running up to August 2008.

Whichever card you go for, remember to spend sensibly and ensure you are able to comfortably afford the minimum repayments. It is all too easily to go on a festive splurge for family and friends. But just one missed repayment could see your credit rating take a nose dive, making it difficult to borrow money in future.

If you have existing credit card debt at the standard APR, love the countryside and are fond of wine, the National Trust Credit Card could be worth a look.

Between now and November 15th MBNA are offering consumers the chance to win a case of wine every month for a year when they successfully apply for an MBNA National Trust Credit Card. All entries received before 15th November will be entered into the free prize draw to win this great prize.

If you have existing credit card debt at the standard APR, love the countryside and are fond of wine, the National Trust Credit Card could be worth a look.

Between now and November 15th MBNA are offering consumers the chance to win a case of wine every month for a year when they successfully apply for an MBNA National Trust Credit Card. All entries received before 15th November will be entered into the free prize draw to win this great prize.

The MBNA National Trust Credit Card offers:

• 0% on balance transfers for 12 months (3% handling fee)
• 0% on card purchases for 3 months
• 15.9% Typical APR (variable)

To find out more about this great Charity Credit Card and apply online visit our Charity Credit Card Tables.

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Internet Christmas shopping is something that's clearly here to stay. Online spending is expected to top £10bn this Christmas, up from £7.66bn last year. The latest surveys suggest that women will spend an average £376, and men £365.

It's easy to see the advantages: convenience, no queuing, and speed for example. But at the same time, it's worth keeping a few guidelines in mind:

1. Create a list of the things that you want and visiting a number of comparison sites to make sure that you find a good deal.

2. Be aware of delivery times as some presents may take up to 28 days for delivery

3. Set yourself a strict budget as it's easy to get carried away online

4. Start saving long before Christmas: if you must use credit, don't fall into the trap of paying heavily for Christmas later

5. Always pay through a secure method

And finally, it's well worth your while to shop around for cards that offer special deals in time for Christmas. If you pick a 0% credit card for example, you will pay just the cost of the goods providing that you pay off the balance in time.

Equally, if you are confident that you will be able to pay off the balance in full, a cash back credit card will effectively pay you to shop.

MBNA have just launched a fantastic, limited duration offer on their Sony Credit Card.

The MBNA Sony Card incentive gives customers the opportunity to get a free S Series 2GB MP3 Player absolutely free. Normally this product would cost £55 RRP in the shops.

To qualify customers simply have to take out a MBNA Sony Credit Card and make a minimum spend of £250 on purchases or balance transfers.

As well as this great offer, the Sony Card boasts highly competitive features and benefits in its own right:

• 0% on balance transfers for 12 months (3% handling fee applies)
• 0% on card purchases for 3 months.
• Typical 15.9% APR Variable
• Pulsebeat points on all purchases, which can be exchanged for Sony CDs, DVDs, Playstation games and more.

Last time Sony Credit Card ran this offer it only lasted for a week because demand was so strong. So don't delay - click here now to apply and claim your free MP3 player today.

After a raft of depressing news stories about rate and fee increases and rejected applications, there may be some good news after all for the UK's 48 million credit card users.

In the countdown to Christmas, credit card companies are offering cash back rates of up to 5%. American Express last week led the charge with a 5% cash back offer, beating Capital One's market leading 4% offer.

Both rates last for 3 months only. But that still covers the Christmas spending spree and the new year sales.

After that period, the American Express Platinum card reverts to a tiered cash back rate. A spend of less than £3,000 per year will earn 0.5% cash back, and over £10,000 will earn 1.5% cash back. The Capital One card offers a flat 1% cash back rate after the initial 3 month period, but it does throw in free family travel insurance for holidays paid for on the card.

Neither card imposes a maximum spend limit, so the cash back earnings potential is uncapped.

Egg Money offer a 1% flat cash back rate on all spending, although the maximum that can be earned in any year is capped at £200. And Abbey has launched a card that offers 5% cash back on all supermarket shopping, although this too caps the maximum cash back amount.

A word of warning though: cash back cards should only be used by those confident in their ability to pay off their debt in full each month. Borrowing money only occasionally will easily outweigh the benefits of any cash back earned.

If you're addicted to the latest technology and have an existing credit card balance to transfer TheRateTart recommends you look into the Sony Credit Card.

As well as offering a competitive 0% on balance transfers for 12 months plus 0% on purchases for 3 months, the Sony Card lets you collect Pulsebeat points with your purchases. And when you buy Sony products with your Sony Credit Card, you get triple the Pulsebeats!

Earn enough Pulsebeat points and you can get great freebies including CDs, DVDs or PlayStation Games.

If you are one of those impatient types who demands instant gratification, there's good news for you too. When you successfully apply for a Sony Credit Card you'll receive 3000 Free Pulsebeats - enough to claim two free DVDs.

But remember - MBNA (the credit card provided behind all this) aren't offering these credit card freebies because they like you. They hope that after the 3 months 0% purchase period ends you won't pay off your balance in full each month. This means you start to pay interest at 15.9% APR and they start to make money.

So be smart. Follow these simple rules and you'll get freebies and MBNA get nothing;

• Use the Sony Credit Card for all your regular purchases.
• Make sure you only spend what you can pay off each month.
• You earn Pulsebeat points and get freebies.
• They get none of your hard earned money in interest payments.