Banking on the plastic

It is a good idea to compare the introductory rates with their respective standard rates. Choosing a card just because it offers a low initial rate may work out more expensive over the long term than a card that charges a slightly higher introductory rate but a lower standard rate.

Choose a card to suit your style
Ask yourself whether you are likely to pay off your entire balance each month. If you are, then you needn't worry too much about how low the interest rate is. Instead, you might prefer to opt for a card that charges a higher rate but gives perks such as cashback on purchases or rewards you with air miles.

Halifax, for example, gives £1 cash back for every £100 you spend, while Alliance & Leicester and Egg give you 50p for every £100. Rather than cashback, cards from Tesco and Natwest, for example, give you points that can be exchanged for air miles or leisure vouchers.

If, on the other hand, you are a long-term borrower, interest rates are very important. To keep costs low, you should switch aggressively between the very best deals.