However, independent financial research company Moneyfacts is advising credit card holders to wise up in order to ensure they are getting the best deal.

The company advises credit card holders not to be tempted by the zero per cent APR deals as there can be catches in the small print – consumers are better off looking for a deal that starts to charge interest on transactions as late as possible.

“Cards which charge from the statement date are few, but choosing one which charges from when a transaction is applied to the account will save more interest than cards which charge from purchase date,” said Samantha Owens of Moneyfacts.

Consumers should also beware of interest-free days, which can vary from zero to 59 – choosing the wrong deal for your financial habits could cost you dearly.

“As with all financial products, choosing the one most suitable to your spending habits is very important,” Ms Owens added.

“If interest is charged immediately on cash withdrawals, but as a card user you would never take out cash, then focus on the APR on purchases as well as the interest free days on offer for purchases.”

Click here for a simple, user-friendly guide to the best credit cards around.

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