People seeking a new credit card should be aware they are much harder to obtain than they used to be, with half of all applications turned down. To have a new card ready for Christmas shopping, you need to apply soon, as most card issuers say it can take at least 10 working days for an application to be processed. But first ask yourself: what type of shopper are you? If you will always settle your bill, you could get a cashback card, refunding a percentage of spending.
Andrew Hagger, of comparison website moneynet, said: "If you pay your balance off in full every month the interest rate is irrelevant, so you should look to get some sort of reimbursement on your shopping."
Michelle Slade, of Moneyfacts, agreed and said: "If you pay the balance in full, then a cashback credit card is a good option. That way you are earning money out of the bank rather than the other way round. American Express Platinum is offering 5pc cashback for the first three months and up to 1.5pc thereafter."
Mr Hagger tipped the new Abbey credit card, which offers 3pc back on your supermarket and petrol spend for the first six months.
You can get even more for your spending with reward points rather than cashback. For example, the Tesco Clubcard credit card is a great deal for those who buy their shopping and petrol at Tesco. Alternatively, you could look at the Partnership Card from John Lewis/Waitrose, where rewards are converted into store vouchers.
Read more at Telegraph.co.uk: Labour is 'hypocritical' on credit card interest
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