We’ve talked about comparing different types of credit cards here before including rewards cards, frequent flyer cards, balance transfer cards, and cash back cards. We’ve even given you a rewards card comparison chart to use as an interactive worksheet to help you choose a rewards card (and we’ll give you more comparison charts for different types of credit cards in coming weeks). Now let’s look at another type of credit card: low rate credit cards.

How do you compare low rate credit cards? I know what you’re probably thinking — “Are you kidding? That’s so obvious!” It is, to a degree. While interest is important when you’re choosing between low interest rate credit card offers, there’s more you’ll probably want to look at. Here are some factors you might want to consider when choosing a low interest rate credit card:

1.    The interest rate – If your goal is to secure a new low rate credit card, the lower the interest the better the card is, right? It’s certainly one consideration. It will likely even be your biggest consideration. After all, you want to minimise any interest you would pay for using the card to carry a balance.

2.    How long the interest rate is valid – Just because you see a very low interest rate advertised (like the 2.99% interest offer on purchases from the Aussie MasterCard), that doesn’t mean the low interest rate is valid indefinitely.

Some low interest offers are just introductory offers. The Aussie MasterCard’s interest rate for example goes up to 12.29% after six months. That’s still a low interest rate, but it’s a far cry from 2.99%. Make sure you compare the long-term low interest rates and not just temporary offers.

3.    Annual fees — Low rate credit cards are all about helping you save money. Why else would you focus on them? Is a low rate card worthwhile if the annual fee is so high that it undermines the amount you’d save on interest? Probably not.

4.    Balance transfer terms – Low interest credit cards are good for more than financing new purchases without hefty interest payments. They’re also good for refinancing balances from other cards through a balance transfer. If you have another credit card and you’d like to transfer the balance, the low rate card’s balance transfer terms are something you need to look at.

For example, does the card offer an introductory balance transfer rate that will help you save more than the normal low rate will? Perhaps an even more important question is which interest rate the balance transfer will revert to after the introductory period — the low interest rate on purchases or the often-higher cash advance rate?

If you want to get the most out of a new low interest rate credit card like the NAB Low Rate Visa, you have to consider all of the ways you might use that card. Don’t assume that the lowest advertised interest rate automatically equals the best low rate credit card. Choosing a credit card is not a one-factor decision.