If you pay your credit card bill in full each month then you’re already onto a good deal: after all, you’re basically getting interest-free credit on all your purchases for the preceding month.  If your card charges you an annual fee then you should shop around for one that doesn’t – after all, why pay for something when you don’t have to?

If you’re going to go to the time and trouble of shopping around for another credit card you might as well get one that rewards you for your business.  After all, the credit card providers make money whenever you use your credit card, because they charge shopkeepers for each transaction.

If you’ve been paying your balance in full for some time, and you have other factors in your favour that count towards a good, solid credit history (like a stable address, no CCJs and no defaulted payments on other loans) then you should have no problem at all in applying for a new card.

People with poor credit and who don’t pay their balance in full each month will normally struggle to get a new credit card; if they manage to do so then it will be a credit card with a high rate of interest (possibly with an introductory interest-free period for balance transfers or purchases).

As someone who repays their debts promptly you could choose a low-interest credit card if you wanted – but there would be little point, since you don’t usually incur any interest on your bills.  No, a reward credit card would be far more advantageous.

Cashback credit cards offer to pay you a percentage of whatever you’ve bought.  Some have an upper limit of how much they’re prepared to pay you over the course of a year (so tough luck if you buy three racing cars and a mansion on your credit card – they’ll only give you £1000 or so).  Others don’t have that limit so you can earn a considerable amount of money during the year.  Even the ones with an upper limit are basically offering you money for nothing so you have nothing to lose.

Cashback credit cards pay between about 0.5% and 5%.  Some will pay different percentages for different types of product whilst others offer the same percentage on whatever you buy.  Some charge an annual fee.  These differences between cashback credit cards make it obvious why you should shop around and compare all the details before you apply for one.

Once you’ve applied, use your cashback credit card to shop for anything and everything – use it for things you’d normally pay for by debit card to maximise your spending.  But whatever you do, make sure you can afford to pay your credit card bill at the end of the month so that your cashback isn’t swallowed up by the amount of interest you’ll have to pay.