Petem95

Anyone here do the rate tart thing? Ie keep transferring your credit card balance from one card to another?

I'm tempted to get in on the act before banks pull the plug (cheap credit is getting harder to come across!), so I'm looking at going for a Sainsburys bank CC which states 0% on purchases for 10 months, so guessing that is simply as it says - I can just make purchases and pay off nothing for 10 months, and get no charge for interest? Just keep putting more and more on it?

After that will transfer the balance to whoever is offering 0% on transfers (if anyone in 10 months!)

I currently use a card which gives cashback, but this only nets me about 60quid a year and seeing as I spend at least 600/month av on the card I'd make a hell of a lot more than 60quid by building up a big balance on the card and keeping the money which would have paid it off in the bank getting 5.7%!

Any rate tarts out there? Are there any cons (ie damaged credit rating?)

mart360

bob r

iTrader: (46)

I've been doing this for the last 3 years.
It can be a bit of a pain come time to change as I generally leave it to the last minute but on the whole you will save rafts on interest.
In the past it was free to do the balance transfer but now they have cottoned on, you will be charged a small percentage(in the small print).

Apart from that I can't see a problem with it.

NotoriousREV

I've put the time and energy into clearing my cards off completely. Now there's no need for me to jump rates. Bloody hard work but worth it. Only another £16,000 to go until I'm debt free (mortgage not included).

ScoobyDoo555

I thought that card jumping affected your credit rating....

ronjeramy

iTrader: (1)

it does, my financial adviser told me about that, when i was looking for my mortgage. every time someone checks your credit rating it leaves a mark, if you do it frequently it has a detrimental effect on it

Phantom_Flan_Flinger

You have to make the minumum payment every month. If you miss a payment you lose the 0% deal and will be moved to their standard rate.

When it comes to transferring after 10 months, you'll find it hard to get a card that won't charge you between 2% and 3% as a transfer fee. There are only a very few left.

Tarting won't effect you credit rating, it just gives you a very long credit report .
Your credit rating only gets affected if you make multiple applications around the same time. If you're only applying once every 6/10 months, there shouldn't be a problem.
Just make sure you don't default on a payment.
I've been doing it for years, not had any problems getting cards, loan, mortgage, etc.

Edit - Have a look at Money Saving Expert. It has all you need to know.

Dave.

classic Subaru Si

most charge a 2% fee for transfering the balance, but its worth it for the 0% - it will save you a shed load!!

hoskib

iTrader: (1)

my current halifax card is a 12 month interest free on purchases and transfers, some are full term on the transfers but only a few months for the purchases (and vice-versa) so check that.

been doing it for over 6 years now so managed to enjoy the free swap for a while effectively a 6-12 month loan for 2% well, if you are strict with yourself when it comes to repayments