Signing up for a credit card often means that you are looking for a card offering you low interest rates, with great rewards and benefits. The lower the interest rate on your card the lower your repayments.

When it comes to understanding how the lowest interest rate credit card works, there are a few important things to keep in mind.

The lowest interest rate credit card makes sense if you make regular use of your card and know you won’t be paying the balance off in full each month.

If you always maintain a zero balance, then a card with extra benefits such as rewards points make sense.

Some credit cards offer promotional 0% rates on purchases for a fixed period.

You could also lower your rates by signing up for a balance transfer credit card.

Lowest interest rate credit card types:

Standard low interest rate

This type of card typically offers rates below 15% per annum and has a low annual fee.

Low interest rate with 0% purchase rate

This option lets you make purchases with 0% interest during the promotional period.

Low interest rate with balance transfer

This option lets you transfer your existing balance from another credit card, as well as charging on low rate purchases.

How to compare to find the lowest interest rate credit card:

Compare the number of interest free days offered by the credit provider. Most credit cards offer up to 55 days’ interest free credit.

Find out if the card has cash advance options.

Find out about the revert rate. This is the interest rate that will apply after the promotional period expires (a balance transfer or 0% purchase offer).

Compare fees and charges. Try to find a card with a low annual fee.