Low Balance Transfer Credit Card or typically %0 balance transfer Credit cards are cards with low interest charges on balance(s) moved from your existing credit card(s) to your new one. You typically have between 60 and 90 days to transfer your outstanding balance(s) across and then you can benefit from 6 to 18 months interest free.

With balance transfers credit cards you can transfer balances from all of your other high interest credit cards, subject to your new credit limit. In this way you will then have one large balance rather than a number of smaller ones. There are two main types of balance transfer offers. Normally you get 0% for a set period, so if you believe that you can clear the whole balance within the interest free period then this is the card you should go for. The other type is a low interest rate for the life of your transferred balance which is more suitable to someone who needs more time to payoff their debt.

Cashback reward credit card are ways of getting something from the credit card provider simply for being a loyal customer and using the card. The more you spend the more you can benefit. Simplistically, you get a reward (a % of the amount spent) every time you make a purchase. It works by giving you back a small percentage (normally 0.5 – 2.0%) of the purchase price at the end of the year. It may seem a small amount but it can soon add up.

So, if you spend £3,000 on your cashback card with a return rate of 1.5% then you will get £45 at the end of the year. You must be aware of any interest that is building up as this can easily outweigh the benefits.

The majority of these cards come with an interest free period of anything from 30 to 60 days. This gives you the leeway to pay of the card balance and thus get the cashback reward. Should, however, the unforeseen hits and you are unable to pay off the amount monthly then you will end up paying the full interest rate, this is a situation that should be avoided at all costs as the rates on these cards are hardly the most competitive.

Prepaid credit card looks just like regular credit and debit card, with a card number, magnetic strip and chip. They can also be used to make purchases and withdraw cash just as you would with a regular credit or debit card too.

However, there is one major difference; as prepaid cards aren't linked to a bank account or credit facility there is absolutely no risk that you can go overdrawn or run up any debt as you can only spend the balance you have available.

You top up your prepaid card with cash just as you would a pay-as-you-go mobile phone or prepaid gift card. Then, when you come to make a purchase or withdraw cash from an ATM the value of your transaction is automatically deducted from your card balance.  Once you've used up all the credit loaded on your card you won't be able to make any further purchases until you next top up.

Reward and Loyalty Credit Cards are where the lenders are offering rewards (apart from cashback) for using their credit cards, for instance airmiles or shopping discounts. These break down into basically two camps, Airmiles and Loyalty cards.

Airmiles - use these cards if you are a frequent traveller, An Airmiles credit card generates reward points through either purchases or general use, which can then be swapped for free travel. When airlines are involved the points reward system uses what are called Airmiles, which swap into one mile of free flight per airmile (subject to conditions). Many airmiles credit cards can also offer other rewards in connection with travel, such as free travel insurance or holidays. The rewards of an airmiles credit card differ from company to company. Loyalty cards - The whole point of a supermarket credit card is that you can save money that you would have to spend on your shopping any way. So the best card for you is usually the one offered by your local supermarket - the one you use most often.

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