Today low interest rates that we are experiencing have spurned hundreds of loan and credit card companies cashing in on cheap cost of borrowing. To get approved for a loan or a credit card nowadays has never been easier. With advent of internet you can get approved for a loan or credit card in 10 minutes. So we all have a few 0%, low interest rate credit cards in our bags and wallets but lets find out a bit more about sting in tail of these cards.

1.Monthly Repayments: Well done if you pay your bill off each month in full. Like most of us we only pay off minimum monthly repayment; this is usually a % of outstanding balance or no less that £5. Some credit cards will set minimum repayment on a card at such a low amount that you inevitably end up paying interest and nothing else. When this happens you end up with a compound interest scenario. Beware you could end up paying off a £2,000 loan for next 20 years.

2.Credit Card repayment protection (CCRP): Credit Card companies make a fair amount of money out of you when you use their cards. But wait they want to make some more. Just in case you die or lose your job they will offer you Credit Card protection for a monthly fee. These are usually over priced. Most credit card companies make a fortune out of these policies as most people don’t understand how these fees are calculated so don’t know there true worth. What most people are buying is piece of mind.

Choosing card that is right for you.

Credit cards represent an important part of our financial lives. Having right credit cards is essential and will make a big difference to your finances. Before choosing right credit card you must shop around for one.

First make an idea on what credit cards are available on market from numerous offers that are always coming to your mailbox. Yet, don't relay too much on them as they can be confusing and sometimes misleading. After that try to establish what features of credit card are most important for you. The perfect card for you should provide right combination of fees, rates and benefits. The next step would be to compare various credit cards and decide which one you will finally choose.

Nowadays, Internet can be of big help to you when shopping for a credit card. First of all, almost all financial companies that offer credit cards have websites. This can save you trouble of wasting your time to personally visit them all. All you need to do is visit them all from comfort of your own home and see what offer fits best to your needs. Some of these websites have a great feature that lets you compare several credit cards side by side. And when you see all figures at once it is easier to decide which card to select.

When you go shopping for a credit card you must think first about how you will use your future card: you'll pay your monthly bill in full, you'll carry over a balance from month to month or you'll use your card to get cash advances. Depending on your needs you'll have to be careful what APR (annual percentage rate) credit card has. Also, you should already know that a single credit card has several APRs; be sure to check all of them. Another thing to check is how finance charge is calculated because each company calculates it differently and you'll want to choose one that offers more advantages to you. Some credit cards even have a minimum finance charge, meaning it will charge you minimum even if calculated amount of your finance charge is less. You'll have to carefully weight all of this information and than decide which credit card is right for you.