From Bip to Zopa: 5 credit cards you may not have heard of

If you have a credit card, it’s likely to be with a mainstream lender. But there are challenger brands to consider.

In May 2022, we surveyed 4,037 people and found one in five had a credit card with Barclaycard, one in seven had one with Halifax .

But some lesser-known providers could offer perks including fee-free spending abroad, cashback and the chance to build up your credit score. 

Here, Which? takes a closer look at five credit cards you may not have heard of and how they compare to the top mainstream deals. 

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of a credit card provider before committing to any financial products.

1. Bip Credit Card

Bip is a digital only card which means you won’t get a plastic card, you can only access it through Apple Wallet or Google Pay. It has APR of 29.9%, offers no foreign fees when spending abroad. 

There are no late payment fees and you can set your own spending caps or turn on a warning cap to get an alert when you hit that figure. 

Bip is suited to those who want to build up their credit score. This means you’re more likely to be eligible for the card if your credit history is poor. 

Is Bip a good provider?: The Bip Credit Card is powered by NewDay and was launched in 2021 as the first UK consumer credit card that doesn’t come with a physical plastic card.

We don’t have a Which? customer score for Bip just yet. We need a minimum of 40 customer responses for a brand to be included in our tables, and we didn’t get this in our 2023 survey on credit card providers.

How does it compare?: When compared to other top travel credit card deals, Bip comes in third after the Halifax credit card review Clarity and Barclaycard credit card review Rewards Visa thanks to its higher APR.

If we compare it to other credit builder  credit cards it’s also competitive. The lowest APR in our analysis is 29.4% APR – so BIP has a competitive deal. It might come down to the other perks such as earning reward points or fees when spending abroad.

• Find out more:best credit cards for bad credit 

2. Metro Bank Credit Card

The Metro Bank Credit Card has a low APR of 14.9% and charges no foreign fee on spending or cash withdrawals in most European countries. But you will be charged a fee of 2.99% on purchases made outside of Europe. 

Is Metro Bank a good provider?: Metro Bank first opened its doors in 2010 and offers a range of products including current accounts, savings accounts and credit cards. It currently has 76 bank branches. 

Metro Bank scored 73% in our survey of the Best credit card providers 2024 coming joint 10th out of 29 providers.

How does it compare? This card has a lower APR than rivals such as the Halifax credit card review Clarity and Barclaycard credit card review Rewards Visa. However, these cards get you free-fee spending around the world – not just in Europe. 

If you’re looking for a low-interest credit card, there are deals with rates as low as 10.9% APR that can beat Metro Bank, but they don’t come with the travel perks.

• Find out more: best travel credit cards 

3. Smile Classic Credit Card

The Smile Classic Credit Card offers cashback at a rate of 0.25% and has a competitive APR for this type of card at 23.9%.

If you have a Smile current account you’ll get a better rate of 19.9% APR (representative).

Is Smile a good provider?  Smile is part of The-Cooperative Bank and was the UK’s first full internet bank when it launched in 1999 . It offers a variety of products including savings accounts, mortgages and insurance. 

As Smile is an online bank, it does not have any dedicated branches, however customers can visit a Co-operative Bank branch for help.

We don’t have a Which? customer score for Smile as we didn’t get enough responses in our latest credit card provider survey.

How does it compare? If you want to earn cashback on your spending there are several other cards that offer better rates. 

For example, the American Express  Platinum Everyday Cashback Credit Card has no annual fee and offers 5% cashback for the first three months, which then drops to 0.5%. It comes with a representative APR of 30%. 

• Find out more: best cashback and reward credit cards

4. Yonder Credit Card

The Yonder Credit Card is a reward credit card aimed at Londoners.

It allows you to earn one yonderpoint per £1 spent, and five yonderpoints with selected partners. Points can only be redeemed at Yonder’s experience partners based around London and these change each month. Each yonderpoint is worth around 2.5p.

There are no fees abroad and the credit card includes worldwide travel insurance, provided by AXA.

It costs £15 a month, although new customers can get the first six months free. The card has a representative APR of 64%.

As well as those looking to be rewarded for their spending, this card would also suit anyone with no credit score, for example, someone who may have just moved to the UK as Yonder uses open banking to make lending decisions as it provides access to your current account, rather than relying on information in a credit report.

Is Yonder a good provider? Yonder launched in 2022 with a focus on Londoners although it does have plans to expand to other cities.

Currently, we don’t have a Which? customer score for Yonder.  Providers must receive a minimum sample size of 40 respondents to be included in our tables.

How does it compare? It’s quite hard to directly compare the Yonder card to other reward credit cards, as it’s unique.

The American Express   Preferred Gold Rewards Credit Card is a premium card that might be worth comparing it to. The card has an annual fee of £160 but is free for the first year. It has a representative APR of 74.2%. 

You earn one Amex point for every £1 spent (more on selected purchases), and these can be redeemed with travel partners or go towards your statement. Spending £750 a month could get you around £40 as a statement credit. 

Spending the same amount with Yonder will earn you about £225, enough to cover the £180 fee and leave you £45 better off. 

• Find out more:best cashback and reward credit cards 2023

5. Zopa Credit Card

The Zopa Credit Card offers no fees on spending abroad but you will be charged a fee of £3 each time you withdraw cash abroad. 

The card has no annual fee and a representative APR of 34.9%, but you may be offered a rate as low as 24.9% based on your credit score.

The app can give you instant spending notifications and has a ‘credit cushion’ feature, where you can set aside some of your available credit balance, and choose when to use it when you really need it.   

Is Zopa a good provider? Zopa Bank launched in 2020, although Zopa has been around since 2005 and is known for its peer-to-peer lending company.

Zopa received a customer satisfaction score of 77% in our best credit card provider survey placing it joint 4th out of 29 providers.

How does it compare? Zopa missed out on being a Which? Best Buy for travel due to its representative APR being higher than our 31% APR benchmark.

Instead, it was pipped by the Halifax  Clarity and Barclaycard Rewards Visa, which both have no foreign transaction or cash withdrawal fees. Both of these cards also had below-average APRs of 22.9% and 25.9% respectively.

• Find out more: best credit card deals 2023 

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