How to be a credit card rate tart

A rate tart is somebody who switches from one credit card to another so that they can take advantage of introductory interest rate deals - and ideally 0% interest introductory deals.

So assuming you have an outstanding balance on another credit card and you are paying interest, the idea is to get a card with a 0% introductory rate interest deal and transfer the balance from your old card to your new card.

Introductory rates can last for a year or more, but like all good things they come to an end.

Six to eight weeks before that happens, get yourself another card with an introductory interest rate deal and transfer the outstanding balance to it.

This way you will never pay any interest on your outstanding balance!

There are a few things to watch out for if you are a rate tart.

First of all, you do need to be on the ball when an introductory deal is coming to an end. If you are not - and you don't transfer the outstanding balance to a new card with a 0% introductory rate, then you will end up paying interest on that oustanding amount. So make sure you know when you have to switch cards and make sure you do it.

Secondly, the credit card companies have got wise to rate tarts and the fact that they don't make any money out of you if you transfer balances away to another card company. So they now charge you to make a balance transfer - usually 2-3% of the outstanding balance. That though is still a small price to pay compared to the standard interest rates you would be paying (15-20%).

Thirdly, if you use your card to pay for anything, you will be charged interest on those purchases at the standard rate (again 15-20% normally) - and you can't repay this additional borrowing until your balance transfer has been paid in full. Some cards do offer a 0% introductory rate for new spending too, but usually only for a very short period.

0% Credit Card Transfer Deals