What is rate tarting? What should I be aware of when rate tarting?

Related FAQ's Q. How long is the longest 0% balance transfer deal available? A. 0% balance transfer credit cards may no longer be the new craze of the financial world – but their popularity has yet to abate and neither has the competition between the credit card companies. Q. Can I transfer balances from multiple credit card accounts? A. Yes, 0% balance transfer credit cards can be used to clear up debts running over multiple card accounts. Q. Why do I have to pay a transfer fee? Can I avoid paying it? A. Balance transfer handling fees - or transfer fees for short - were introduced by credit card companies to recoup lost profits from 0% rate offers. It’s now become a real rarity to find any 0% offer without a transfer fee – and when you do, the 0% period tends to be no longer than 6-months max. Q. How much can I transfer? A. Generally speaking the amount you can transfer onto a 0% balance transfer credit card will be determined by the credit limit granted by the new card issuer. Q. What is stoozing? How can I make money by stoozing? A. Stoozing is a cunning way to make money from a 0% interest credit card without having to do anything other than either spend on the card or transfer funds from the card into a high interest savings account.

Rate tarting is where you regularly transfer your credit card balance from one card to another as the interest free periods come to an end in order to avoid paying any interest on your credit card balance.

This is a method that is used by many people with 0% balance transfer credit cards. If you are considering becoming a rate tart you should bear some important facts in mind:

• Many credit cards charge a fee for transferring your balance, so you may have to pay a percentage of the balance that you are transferring each time you transfer to a different card.


• You need to make sure that you keep on top of the dates that your interest free periods are due to end so that you can get your application in for a new balance transfer card in time.


• If you are able to repay your balance in full before the interest free period ends on your card there will be no need to rate tart.

How does rate tarting work?

Rate tarting involves regularly changing your 0% balance transfer credit card as the interest free period is coming to an end to ensure that you never have to pay any interest on any remaining balance. With a 0% balance transfer credit card you are given a specified interest free period within which to repay the balance without incurring any interest. Once this period has expired you will normally have to pay higher than average interest on any remaining balance.

If you do not think that you are going to be able to clear the balance on the credit card you can simply switch to another interest free credit card when the interest free period on your existing card ends. And again, if you still have a balance on the new card when the interest free period is coming to an end, you can switch yet again, and so on. This is how rate tarting works, and when conducted effectively is can save you a small fortune in interest on your balance.

You do have to be pretty organized in order to be a rate tart, as you need to keep an eye on when your interest free periods are drawing to an end in order to provide you with adequate time to apply for a new 0% balance transfer credit card. It is a good idea to log down dates in your diary, so that you know exactly when to make your new application in order to transfer your balance again before you start getting charged interest.

Another thing that you need to bear in mind is that most credit cards charge a percentage of the amount that is being transferred for the privilege of transferring your balance and paying no interest. So, if you are rate tarting you may find yourself having to pay a percentage of the amount that you transfer each time you transfer your balance to a new credit card.

Want your credit card questions answered? Email us at for a speedy response.*

*Please read this before contacting us:

If you ask us a question we may publish your question and our response on our website, we won’t include your full name or email address but if you do not want your question published just let us know. We will do our best to reply to all questions as quickly as possible, however we can't guarantee a response.

Do not send us any personally identifiable information such as bank details, we will never ask for them.

Please note any answer or reply we send you or publish on our website is based on general factual research and does not in any way constitute financial, investment, tax or other advice. Any response we give is intended to provide general information only and does not attempt to give advice that relates to your specific circumstances. You are advised to discuss any specific queries or concerns with your bank, an advisory body or a financial advisor. You are also advised to conduct your own research before acting or not-acting on any issues raised.

If you are worried about debt or are experiencing any financial difficulties please contact the CCCS or National Debtline who will be able to offer free and impartial advice. You can also access free rights advice through Adviceguide from Citizens Advice Bureau. We are not in any way connected to the CCCS, National Debtline or Citizens Advice Bureau.

Credit Card Comparison
Credit Card Guide
Credit Card Questions & Answers