Best credit card deals

But make sure you set up a direct debit to pay the minimum each month. If you miss this, the introductory deal usually disappears.

2 BALANCE TRANSFERS

This type of credit card allows you to switch an outstanding balance and pay no interest for a fixed period.

Once the interest-free time limit is up, make sure you repay your debt or switch to another cheaper card, otherwise you will end up paying high interest rates of more than 18pc.

The best deals available include the Santander credit card, which charges 0pc for 15 months with a 3pc fee or the Egg Visa card, which charges 0pc for 14 months, also with a 3pc fee.

Remember never to spend more money on the credit card once you have transferred your balance.

3 FREEBIES

It is possible to bag free flights when taking out a credit card and then cancel the card afterwards. Moneysavingexpert.com lists the best freebies, which include a free European return flight if you take out and spend £10 on a Lloyds TSB Airmiles Duo card. The BMI Amex card offers a similar free flight deal.

4 LOW INTEREST

If you simply want a card with a low interest rate and don’t want to keep swapping from deal to deal then go for a low standard APR card.

To find the best rates, check out the Halifax Easy Rate MasterCard, which charges 6.9pc, or the Co-operative Bank Platinum Tracker Visa, which charges 7.7pc. These are good deals when you consider that the average interest rate for credit cards is more than 18.2pc.

But be aware that only those with an impeccable credit history will get the best rates.

5 FOREIGN USAGE

While cards are a convenient way to fund your holiday spending, if you use them incorrectly charges can quickly mount up. Fees vary between banks so check exact charges before travelling.

Darren Cook, spokesman for Moneyfacts.co.uk, said: “It is crucial that you understand what charges are levied when you use your credit card abroad. There is a trio of credit card providers that do not charge foreign usage: Post Office, Saga and Nationwide, but take care, the latter does charge a 1pc fee if you go on holiday outside the EU.”

Or take out a pre-paid card and load it up before you travel. The Kalixa MasterCard is one of the cheapest around.

Low Interest Credit Cards