subject: How to be a credit card tart [print this page] How to be a credit card tart How to be a credit card tart
You didn't think you'd ever want to be a tart, right?
Well unfortunately credit cards have had their Sex and the City moment; engaging in carefree, guilt-free credit card switching is in vogue (if not in Vogue).
Clever consumers (tarts) avoid paying interest on their credit card balance by transferring the debt from one card to another, thereby using their repayments to reduce the overall debt rather than just paying interest.
It's important to do this quickly to avoid interest so those cardholders in the game of transferring balances from one 0% balance transfer credit card to another will breathe a sigh of relief at the news that the number of available cards has been dramatically increasing.
Any credit card comparison the number of issuers offering 0% interest on balance transfers for at least ten months has increased by 20%.
Over 72 lenders are now competing to take on cardholder debt - up from 60 just 12 months ago.
In the rush to entice consumers, some card companies are offering cards with a 15-month interest-free period.
You should also be aware of the fees involved.
Transferring a balance will incur a handling fee, usually of 2.9% of the transferred sum.
However, this loses significance when the potential savings on interest are factored in to the equation.
It's also important to remember not to spend on a 0% balance transfer credit card.
Customers solely seeking the best deals for 0% interest on new purchases are well catered for by a swathe of tempting new offers.
Over the last year, there has been a wallet-tingling 450% increase in the number of card companies offering 0% interest cards on purchases for at least ten months.
The downside to some of them though is that the 0% only applies to those extravagant sorts who only ever make purchases over 100.
Another example is the Sainsbury's credit card which also offers a 12 month 0% purchase deal. The catch here is that this is only valid for purchases made in Sainsbury's. Those made elsewhere are only free of interest for nine months.
It's also worth bearing in mind that you'll need to move from one card to another as quickly as possible. For this reason instant decision credit cards might be useful since you get the credit card much more quickly than with a normal application.
However, you'll need to be sure that you can apply since rejected applications can harm your credit score in the future.
