Chief among these factors are all the different rates associated with each offer including the APR (annual percentage rate), the annual fee if there is one as well as other cardholder benefits.



Bear in mind

- Low interest credit cards have either a low APR or a low introductory APR. A low interest rate

credit card can be a good choice for people who tend to either leave an outstanding balance on their credit cards or tend to pay their bills late.

- Low interest credit cards can also help save money by reducing interest and finance charges.

- Cardholders who tend to carry an outstanding balance on a credit card with a high interest rate may also benefit by applying for a low interest credit card for balance transfers. Simply put, with balance transfer credit cards, you can transfer a balance from an existing high interest credit card to a low 0% APR interest rate credit card.

Benefits that 0% cards should include

- There ought to be 0% introductory APR for at least the first 12 months and no annual fee. A typical example would be the HSBC Bank Platinum MasterCard

- special schemes like a rebate program, whereby cardholders earn a cash award that varies according to the amount spent annually. For instance, a cardholder may be awarded a 0.25% rebate for the first $1,000; 0.5% for amounts over $1,000 and up to $3,000; and 1.5% for purchases over $3,000 up to $10,000. An additional rebate may be added for any billing period in which the account carries a balance, so that only those who spend up to $10,000 a year and carry a balance will be able to take advantage of the 2% cash back rebate. A good example of this is the Chase Bank Cash Plus Visa

- If you have a good credit history, the introductory rate for purchases should be long-term, say 15 months.

- Look for benefits like purchase protection, smart card technology, discounts at certain merchants and retailers, a year-end financial statement, and various travel and emergency assistance services.

- Watch out for schemes like optional free rewards programs. For every dollar spent on your card, for example, you earn one point. Earned points can be applied to a variety of services and products. There is no yearly limit or expiration on points earned. As an example, Blue from American Express offers you this benefit.

Looks like a good deal

- Several zero interest cards offer merchandise rewards on items such as toys, DVDs, clothing, jewelry, household items and gifts. You can also receive travel rewards on items such as theme park tickets, hotel stays, and cruises. Plus, of course, there will be 0% introductory APR for a certain period on card purchases and balance transfers.

- There are cards that offer a 0% introductory APR on purchases and balance transfers for up to 12 months, a high credit limit and no annual fees. You can also get a customized card with your business name plus online account management benefits

- Many card companies offer zero interest cards for those with “bad credit”. So you can spend within limits and re-establish your credit. Usually, such cards do not run credit checks and avoid credit turndowns. There is also usually no application fee involved. Moreover, on-time payments are reported to one or more than one major credit bureaus on a regular basis.

- Other cards offer unsecured cash advance loans up to a certain amount. Along with that, there may be offers of “guaranteed emergency cash” that you never have to pay back, and guarantees of no turndowns, no annual fees and no credit checks

However, it is important to read the fine print before you make a decision, so that you aren't caught in a loophole later!