Rate tarts are the savvy bargain hunters of the credit card world. They exploit the credit card system to the full and thus:

• avoid paying interest on their purchases


• manage to borrow money on their cards almost for free


• proceed to make more money with the amount they borrowed!

Rate tarts are aware that the consumer is king. They also know that credit card companies will do almost anything to get new customers and will often offer different types of incentives to attract them. While selecting a card and spending money, a veteran rate tart follows a simple rule - they use only the credit that offers 0% APR.




A smart rate tart actively hunts for a credit card that charges a 0% interest rate. The tart will only use that card for all purchases. Once the 0% scheme or offer is about to finish, and the normal interest rate is about to begin, the rate tart stops using that card and begins the cycle all over again by looking for another 0% card.




How Rate Tarts Exploit Balance Transfers

Once their 0% rate lapses, rate tarts will either look for another card offering the same scheme with a 0% balance transfer. Once they hit the jackpot they will merely transfer the balance debt from the older card to the newer one. This costs them almost nothing, the credit company sometimes completes all the paper work, and they continue enjoying the money at 0% interest.




The Golden Rule of Rate Tarts

Tarts keep one card for making purchases and another one for balance transfers. They never use the same card for both activities. This is for a very simple reason – most cards will slot the least expensive items for repayment first and the most expensive items will be assigned last.




So, if a tart manages to get a balance transfer at 0% then all their additional purchases will attract interest. This is because the credit card company will allow the balance transfer to be paid off first and then they will allow the expensive purchases to attract interest for a longer period of time.




Rate Tarts and Minimum Payments



Experienced rate tarts make their minimum payments regularly and then add a bit on the top for two reasons:

• It keeps their credit scores intact


• The extra payment also ensures that their attractive 0% rate is not cancelled suddenly

Rate Tarts Tips

• Keep track of the precise date their 0% APR or balance transfer offer finishes
  
• Apply for a new card before making big purchases like a car or starting a new business, etc


• Select one card at 0% APR for purchases


• Select another card at 0% for free balance transfers


• Note down the expiry date of the new offer

Matthew Lloyd writes for About Your Money. His articles provide users with useful advice on a variety of financial products, including credit cards. To find About Your Money visit www.aboutyourmoney.co.uk