' is the nickname given to people who chase the best deal.
' is the nickname given to people who chase the best deal with credit cards, switching from one deal to another with 0% interest.
The group estimates these so-called "rate tarts
" have cost the industry around pounds 600million in lost revenue on balance transfers.
The group estimates so-called rate tarts
have cost the industry around pounds 600m in lost revenue on balance transfers, despite the fact many providers have introduced 2% balance transfer fees.
However, the success of the 'rate tarts
' should not blind us to the fact that juggling debts is a dangerous path for many who try it.
It added that multiple card holdings and so-called rate tarts
, who use their credit card as a short-term free borrowing facility, were contributing to the rise in the number of cards being issued, and by 2008 there would be nearly two credit cards in circulation for every adult in the UK.
can easily get pounds 15,000 on their plastic over nine months before they have to pay interest.
Kevin Mount ford at www.moneysupermarket.com says: "Banks and building societies rely on a back book of accounts held by lazy customers who don't realise rates are squeezed to pay the headline rates to attract 'rate tarts
' who keep moving money.
The problem, he says, is that many lenders charge such large fees to get into and out of mortgages - to thwart "rate tarts
" chasing the cheapest deals - that borrowers in real trouble can find it difficult to extricate themselves.
Credit card firms are also proposing sharing customer information in response to the number of "rate tarts
" who switch providers to benefit from zero per cent offers.
: They borrowmoney using 0 per cent interest deals and switch cards to another 0 per cent deal before the introductory offer ends.
While credit card firms have clamped down on so-called "rate tarts
" who chase the best deals, it is still possible to get 0% on balance transfers ( though, increasingly providers are charging fees.