The Rate Tart

Credit card companies are getting very excited about the benefits of "contactless" cards: credit cards that you can use to pay for small items like a coffee or a paper by waving it in front of a reader. Because you don't have to enter a PIN, this makes the card very quick and convenient to use, and reduces the risk of employee dishonesty for store owners.

In London, a similar system is used by Oyster top up cards for public transport. This technology has also been included in some new credit cards. Barclaycard have launched a "three-in-one" OnePulse card that combines a credit card, Oyster card and cashless payment facility, and Halifax have started to send out the first of their "Visa payWave" cards to customers in London in advance of rolling the card out in the new year.

The convenience comes at a price though, because the technology that allows you to wave a card in front of a payment reader also leaves the card vulnerable to fraud. It looks like the cat and mouse game that the card industry has played for years with fraudsters is going to enter a new arena.

Delegates at Cartes 2007, the trade fair for the credit card industry have been warned that contactless credit cards are already being targeted by criminals. And it's easy to see why.

The same technology that makes it easy to make a purchase by swiping your card over a contactless purchase point makes it easy to swipe your details without you knowing. In fact, you could have your card in your pocket or bag and still have it read by a crook. There would be no CCTV recording of you being ripped off, and thieves don't need to risk physical contact or carry the physical evidence of the theft.

So how likely is it? There are two major weaknesses: crooks teaming up with crooked retailers, and unscrupulous retailers overcharging by small amounts.

The cards emit a signal which can be detected by legitimate card readers at distances of up to 10cm. It's possible for criminals to get this close, but all you would have to do to increase the range is increase the power of the receiver. Some experiments have shown that it's possible to pick up signals up to 65cm away from the card.

Banks say that even if the cards are read, the only information captured will be the contactless payment details. Apacs, the card industry body, points out that there is a £10 limit on contactless card use: "And the technology requires that either by time period, amount of times used, or value of items purchased, holders have to re-enter their pin to verify transactions."

Although the card data alone may be of little help to criminals, it's likely that fraudsters will set themselves up as retailers to try to cheat the system, and there are reports of internet sites that explain how to do this.

The second weakness - unscrupulous and systematic overcharging by retailers - is probably harder to spot. Although Barclaycard and Halifax plan to send out regular statements, its less clear who will be able to recognise being overcharged for small amounts and be bothered to complain.

Apacs recgnises that these risks exist, but contends that fraudsters are more interested in collecting lots of small sums when they could focus their efforts on larger rewards. Anyone with a recollection of the plot of Superman III may be inclined to disagree…

In the '80s, the trend amongst credit card companies was to charge more money for a different coloured credit card: Gold, Platinum and Black cards all signified a high income and attracted annual fees. Over time, more companies realised that the 4p average it took to produce a credit card didn't increase if you used gold, silver or black ink. New entrants to the market made it easier to get a premium card, and the pose value was eroded. Competition led to the removal of fees, and a massive increase in the number of Gold, Platinum and Silver cards.

In an amusing twist, it looks like 3M is about to launch technology that will create an ATM readable card that can be completely transparent. This frees up the card design layout, and may mean that the magnetic strip is integrated into the card design.

Any suggestions for the coolest card designs?

For the last 12 years there has been a dispute between the Office of Fair Trading and the credit card industry about card protection abroad.

Section 75 of the Consumer Credit Act specifies that credit card providers have to "stand in the shoes of the supplier". If goods are faulty, fail to arrive or are not as described, then the credit card company as the provider of credit can be pursued to rectify the transaction.

The card industry had argued that it would be unfair to extend this rule to goods bought abroad. They argued that different rules apply when you purchase something abroad, and that there is a higher degree of risk when shipping items from abroad.

But despite their arguments, the judges ruled that all credit card companies will be responsible for any products purchased by consumers abroad when using their credit cards in the UK.

A number of UK credit card companies have reportedly found a new way to squeeze more money from their existing customers.

They are profiling customers they think are at risk of struggling with repayments in future, even though they may have always paid on time and never struggled in the past.

According to reports, credit card companies are looking at customers with high debt levels or with a number of credit cards, and are placing them on a higher risk group. People who always make minimum payments only, even if this is on time each month, are also classified as higher risk customers.

One industry professional said: "Lenders are already digging deeper to pick up on early signs of over-indebtedness. Credit cards provide early warning signs such as borrowing from one card to pay another or constantly making only minimum payments. This kind of information will have a bigger impact than it would have done in the past."

The online bank and credit card provider, Egg, has announced the resignation of Chief Executive Ian Kerr.

Egg has denied that the announcement was related to the recent controversy surrounding the decision to withdraw 161,000 credit cards, impacting 7% of Egg credit card customers.

The bank, owned by Citigroup, said the customers were a poor credit risk but many of those affected insisted they paid their bills in full every month. They claimed that they were being targeted because they did not make enough money for the bank.

Unsurprisingly, this has been consistently denied by Egg.

Mr Kerr, who had run Egg since November 2006, will be replaced by Bert Pijls, Citigroup's country manager for the Czech Republic.

Labour MP Nigel Griffiths, who has led criticism of the credit card cancellations, welcomed Mr Kerr's resignation.

"Egg presided over a PR disaster, withdrawing cards from thousands of perfectly respectable customers and failing to give full and honest reasons," he said.

There are more than 1.5 credit cards per British adult - in fact there are 75 million credit cards for 48 million adults. And it's easy to see why.

If you know how to play the game, you can borrow money for no cost (with 0% credit cards), be paid to spend (with cash back credit cards), and borrow for low rates for life (with lifetime balance transfers).

And if that isn't enough, it pays to know your legal rights. For example, if you pay using a debit card and the supplier goes bust before your goods arrive, you have no comeback. But, if you pay by credit card, section 75 of the Consumer Credit Act 1974 comes to your rescue.

This stipulates that the credit card company must "stand in the shoes of the supplier", and if your goods fail to arrive, are damaged, faulty or don't match their description, you can pursue the credit card company as well as the supplier.

There are limits to this rule: only items costing between £100 and £30,000 are covered, and you must pay for some or all of the goods using a credit card. But even if you used a credit card to put down a £1 deposit on something costing thousands of pounds, you still have the right to persue the card issuer if things go wrong.

This costs card issuers hundreds of millions of pounds a year, and they have been keen to test loop holes in the legislation. The most recent case has been over whether goods bought overseas or from non UK websites fall outside this protection. Law lords last month upheld the Court of Appeals verdict that section 75 in fact does apply to foreign purchases.

Given that we spend approximately £12bn a year on foreign goods and websites, expect to see charges increased by card issuers eager to make back their losses…

One of the nastier bits of small print in credit card contracts concerns the "payment hierarchy".

Say you have both a balance transfer debt, and debt built up from purchases on the card. Both are likely to have different interest charges. The payment hierarchy is the part of the contract that states which piece of debt is paid of first, if you choose to pay in part. Its almost always the least expensive debt that you pay off first, making the credit card companies fat fees.

Now Nationwide has broken ranks with other card providers and has backed the argument for credit card providers to reverse the traditional payment hierarchy in the consumers favour.

Nationwide commissioned research that found that 69% of cardholders don't know the order in which their repayments pay off the debt.

Nonetheless, 66% expected the credit card provider to arrange for the most expensive debt to be paid off first. Nationwide now claims to be the only provider to do this.

"Many credit card providers use low introductory rates to lure people into opening an account," said Jeremy Wood, divisional director at Nationwide.

"These offers can look very appealing, but when you scratch beneath the surface you discover that credit card holders often don't receive the full benefit of these low rates."

Let me start by saying that everyone's circumstances are different. With that disclaimer firmly in place, let's talk turkey.

Say you spend around £1,000 a month on credit cards, and you can afford to pay off this amount in full every month. Over a year, a cashback credit card will leave you more than £100 worse off than a 0% on purchases card.

Here's the maths. A yearly spend of £12,000 on a typical cash back card would earn me 4% cashback for 3 months and 1% for 9 months. Assuming I pay off the total debt each month, that would give £210 cash back.

The same spend on the Natwest 0% credit card paying a minimum of 2% of my balance each month would mean that I need to make payments of £1,236. At the end of the 12 months, I'd need to make a final payment of £10,764 to clear the outstanding balance.

So, instead of paying in £12,000 over a year, I can pay just £1,236 and invest the rest in high interest savings account. Assuming I used the IceSave account at 6.30% AER, this would earn me more than £300 over the next twelve months and make me more than £100 better off.

Of course, this is a more risky strategy and means I have to be on the ball with my repayments. Equally, I have to avoid the temptation to withdraw cash, use credit card cheques and overspend because if I did, I'd end up paying fees and charges. And that would quickly overtake my £100 saving.

It's tempting to think that by just using your rewards credit card, you will earn back something you would otherwise have to pay money for.

But its worthwhile thinking carefully before you pick a card.

Rewards cards tend only to make sense if you pay off your balance in full each moth. Otherwise the interest charges and fees will mean any reward you get is quickly outweighed by the penalties.

Equally, rewards are typically only offered on purchases made on the card, and not on cash withdrawals or on credit card cheques - so as well as being an expensive option, this will also not build your rewards.

It's also worth thinking about how often you will use your card, and the amount of money you are likely to spend on the card. Rewards cards work on the principle that the more you spend, the more rewards you are offered. But if you don't spend much on your card, you may find that a 0% on purchases card would give you a better deal in the real world.

Finally, the amount of cash back, air miles, money off in store and other rewards offered by each card varies. So it always pays to shop around.

Spare a thought for credit card companies. They have to walk the tightrope of spending just enough money on getting fraud down to manageable levels, without overspending on combating fraud and blowing all of their own profits on helping boost profits for competing card providers.

One of the fastest growing types of fraud is known as "card not present" fraud. Within the last year, card not present fraud has increased 20% to around £200 million per annum.

The Early Warning fraud information group has tracked fraudulent card not present purchases and the addresses they were sent to. It turned out that, against stiff competition from Birmingham and Bristol, Southeast London was the most popular destination.

0% credit cards can be a cheap way to borrow money. But they can quickly become very expensive if you don't understand the small print the credit card providers use to make money.

One of the nastiest wheezes is called the 'payment hierarchy'. This is the order in which your debt is paid off, and is nearly always tilted in the card providers' favour. Pay off part of what you owe, and it will go against the least expensive part of the debt first, and the most expensive part last.

So how can you avoid getting stung on your 0% card? Three top tips will help:

1) Use different types of credit cards for different types of debt, Over the last couple of years, cards that offer both 0% on balance transfers and 0% on purchases have been introduced. These almost uniformly have a payment hierarchy tilted in the providers' favour. You may be better off having one card for balance transfers and a separate card for purchases so that you can make the call about which part of the debt you choose to pay off when.

2) Use 0% cards that offer both balance transfers and 0% on payments over the same period This makes it slightly simpler to understand what you'll be paying off, and when. But read the small print very carefully.

3) Opt for a credit card with flat rates of interest Being a Rate Tart and switching between 0% credit card deals can save you a fortune in interest. But get the timing wrong and you could pay dearly. If you find it hard to remember, you might want to choose a credit card with a low rate of interest on both purchases and balance transfers. If you do, make sure that the interest rates are the same on both.

Have you been charged a penalty fee by a credit card company within the last six years (or five years in Scotland)? If so, you can get your money back.

So what can be reclaimed? Fees for paying late or exceeding your credit limit can be reclaimed. If you've done this a lot over the years, you may be able to get a tidy sum back.

There has been some confusion about this being on hold. Whilst its true that there is a test case pending for bank charges at the moment, this doesn't effect credit cards.

Equally, it has been suggested that credit card companies have been forced to reduce their charges already. This followed a judgement by the Office of Fair Trading in April 2006 that said penalty fees above £12 for credit cards were unfair. Since most credit card companies were charging £35, they lowered their fees.

This opens up an argument in your favour if you want to reclaim charges. It means you can claim that any fees before the reduction were unfair, and so asking for the difference between the £35 you were charged and the £12 back is straightforward.

Don't be put off because you think this is a difficult process: in most cases it involves writing a couple of letters. Check our TheRateTart guide to reclaiming credit card charges, and the sample letters there to find out how.

Even if the banks say no, you don't need to go to Court. You can appeal to the Ombudsman who can decide on these matters for you. Best of all, its free.

The familiar sound of our political representatives leaping on a passing band-wagon was heard this week.

Labour MP Nigel Griffiths declared his intention to table a House of Commons motion demanding a full inquiry into the controversial decision of Citibank owned credit card provider, Egg, to cancel the credit cards of 161,000 customers.

Following a complaint by Mr Griffiths to the Financial Services Authority (FSA), the Office of Fair Trading (OFT) has announced it will be looking into the matter.

Egg has denied the credit card cancellations was because the customers involved were not profitable enough. But here at TheRateTart we reckon that story is a bit of a rotten Egg.

To understand how the credit card companies make money and how to beat them, check out our Guide to Credit Cards.

TheRateTart has always had a soft spot for the good old Egg credit card.

That's because way back when Egg were the pioneers of the 0% Balance Transfer Credit Card. Others soon followed and before long a new species was born...The Rate Tart.

But in a surprise move, Citibank (the new owners of Egg), have announced a massive 161,000 customers are having their credit cards cancelled due to deteriorating credit profiles.

But angry victims of the credit card cull have hit out. They claim that far from embracing socially responsible banking, Egg is in fact using the credit crunch as a convenient excuse to ditch unprofitable customers. The aggrieved customers have claimed they have good credit histories and /or always pay off their balances in full each month.

Whilst it's impossible to tell who is telling the truth, or whether these are merely isolated example credit card providers ditching accounts that are not in debt is not as crazy as it may seem.

Every customer costs the credit card provider money to service. Whether it is providing monthly statements, staffing call centres, maintaining internet sites, you pesky customers are a constant drain on profits.

But the only customers who make the banks money are the ones who are in debt, and preferably in debt for a long time. In fact, the dream customer is one who pays off the minimum amount every month, taking years and years to clear their debt and racking up hefty profits from interest payments.

If you were to go through every one of the 161,000 cancelled cards you'd probably find lots of customers who have deteriorating credit ratings and lots who pay off their bill every month.

But if you are looking for the one thing that ties them all together, you will find it is a lack of profitability, not social conscience driving the decisions every time.

The Westminster Standards Watchdog is reportedly considering a complaint by a BNP politician over Speaker Michael Martin's use of air miles on flights for his family.

The air miles were earned on official business but used to fly members of Martin's family between London and Glasgow for a new year holiday. Whilst the Speaker has not broken any rules, Members of Parliament are advised to use air miles to offset the cost of future flights if possible.

If you think this all sounds more like political opportunism than genuine corruption we doubt you are alone. Is it really a valuable use of tax-payers money to investigate how an air miles credit card is used?

Think about it. If you travel for work, do you really expect to use the air miles gained to save the boss some expenses or do you treat it as a nice perk? If you pay expenses on a cash back credit card do you deduct the cash back from your expenses claim.

Thought not.

So how about we all get a bit less hysterical and focus the resources of the police and parliament on genuinely dodgy dealings. And don't even get us started on the BNP trying to claim the moral high ground...

According to new research from Abbey credit cards, 6.5 million UK customers will switch their credit card provider within the next year. This is up 5% on this time last year.

The average amount of balances transferred is £1710. If you do the maths, that's over £11 billion in debt that is going to move around.

So what motivates the Rate Tarts who switch?

51% of Rate Tarts change their credit card provider to take advantage of an introductory interest free period on balance transfers.

33% switch for a cashback offer. 29% are seeking an interest free period for new balances. 19 per cent switch to benefit from a lower interest rate charge.

And 6% want a card with more "kudos".

Apart from this survey having a 138% response rate (we think people ticked more than one box), this goes to show that credit card companies are competing intensely for their slice of the £11bn prize. So its worth making the credit card companies compete for your business, and moving your debt around to make you the most money.

Keep your eye out for a new type of credit card fraud.

We've come across stories from the US where your phone is called by an automated voice offering to reduce your credit card interest rates. The recorded voice suggests that if you just press 0 to talk to an operator, they will help you cut your bills. When you're put through, the operator then asks for the number of the credit card you want help with.

We've not yet heard of this crossing the pond to the UK. If you have, or have first hand experience of credit card fraud, please do explain what happened and how to avoid it in the forums.

There are lots of places advertising 0% credit card deals. It's practically impossible to watch daytime TV without seeing adverts for credit. The business of selling money is big business.

That's because credit cards make huge sums of money for providers, and they're willing to fund the industry of attracting new customers.

But before you apply for a 0% credit card, here's something you should consider. When you apply for a credit card, companies check your credit score. And they have carefully designed processing rules that are designer to point out customers who will cost them money. If it looks like you are desperate for money and have applied for lots of credit in a short space of time, you may end up getting refused for a 0% credit card.

So its worth comparing products. You can find online guides from respected sites that offer views on how to pick the right type of card for you. And when by choosing the right card for you before you start to fill forms in, you won't need to waste your time or run the risk of harming your credit rating.

According to research published last week, UK consumers have used their credit cards to take £8.5 billion out of cash machines. This is costing them a fortune in charges. One withdrawal of £20 was estimated to cost £65 over the course of the year in fees and charges.

Credit card providers are of course keen to encourage this trend, and rake in the cash. They're coming up with inventive ways of helping people trigger their high charges. Morgan Stanley has taken to posting out cheques with customers' statements for example.

Do make sure you know how much this is going to cost you before you withdraw cash or use credit card cheques. Credit card companies are making huge amounts of money from people being careless or desperate.

Do you avoid reading the boring small print on your credit card deal? Do so at your peril. It's the loop holes in that boring small print that could cost you dear.

One of the nastiest wheezes is called the 'payment hierarchy'. This is the order in which your debt is paid off.

Say you have transferred debt over from a previous card, put new purchases on the card and have a cash withdrawal. Each will attract a different rate of interest and a different set of charges. If you pay off some of the debt, which rates get paid off first?

You might think that the fair way of doing this is to pay of the portion of your debt that is charged at the highest amount. But then, if you think this, you've never read the small print.

For the vast majority of 0% credit cards, the payment hierarchy means that the order in which you pay debt off suits your credit card companies' balance sheet, not your financial wellbeing.

Recent research, based on the small print of 300 credit cards showed that just four (1%) had a positive payment hierarchy. One was on the borderline. That left 296 (99%) with the nasty negative payment hierarchy.

This is the reason why companies offer 0% credit cards for both balance transfers and purchases: the card providers want you to use the card for purchases and withdrawals too. And they're banking on you not reading the small print.

Abbey has launched a new 0% credit card, and is making a big deal of treating new customers the same as existing customers.

The card has an interest free period for three months on purchases, as well as 12 months interest free on balance transfers. It also offers 5% cash back on the first £1,000 spent in any major UK supermarket.

Whilst it's great to see Abbey publicly stating that it intends to treat new and old customers the same, the proof will be in it continuing to do so.

You've got to admire credit card companies. When it comes to hiding how much their products really cost customers, they're almost as talented as budget airlines.

In the same way that a £1 flight can end up costing you £60 with luggage fees and taxes, picking the wrong 0% credit card can cost you dearly.

Credit card companies try their best to charge you at every step, and sell the money you borrow from them for as much as they can. They will borrow from savers by paying them 5-6%, but lend that out on cards at 20%. Well, someone has to pay for the marble encrusted offices.

Withdrawing cash on credit cards is incredibly expensive, and typically means you'll pay fees and charges for months afterwards. Make sure you don't use your credit card to buy foreign currency: the same high charges apply.

Equally, be wary when spending money overseas and on foreign websites, transferring balances to low rate or 0% deals, and using credit-card cheques.

10 minutes spent making sure you understand the small print may save you a packet. As will researching the best 0% credit card for you - feel free to use TheRateTart credit card guide for a comprehensive breakdown of the things you need to know.

Airline Flybe is about to launch a "Spend and Fly" reward credit card that offers flights as an incentive to spend.

Details haven't yet been published, but it looks like alongside the raft of promotional offers "from selected partners", Flybe are publicising free flights and the right to "jump the queue with new promotions".

Some details of the offer are emerging: in return for spending £4,000 on the card, customers will get a return flight to any destination in Europe.

Nothing has been published about the charges and terms and conditions for the card yet, so we can't form any view on value. But if you regularly fly with Flybe and make all of your payments in full every month, this is a credit card that may be worth considering.

Marks and Spencer is about to make changes to its credit card that will leave its new customers worse off.

At first the headlines look good: customers can now take out a card and get 0% interest on new purchases until the end of July 2008. This 9 month interest-free period is an improvement on the existing eight-month deal. And you can still earn loyalty points that get you money off in store.

But the standard interest rate has been increased by 1% to 18.9%. The interest charge on cash advances is 1% higher at 21.9%.

And the balance transfer charges are also being modified. Existing customer could transfer a balance free of charge and fix it at 5.9% until it is paid off. But for the new card, the balance transfer rate is 7.9% and lasts for only two years.

This is well behind other deals available on the market. Virgin Money offer a 0% balance transfer rate for 15 months, but charge a 2.98% transfer fee. Mint will let you transfer a balance until December 1st 2008 and pay no interest. Their fee is 2.5%.

Come on Marks and Spencer. Its one thing charging a premium for hand smoked salmon, but there's no reason to charge a premium for the money your customers borrow from you.

If you're thinking of funding Christmas on a credit card, which credit card should you choose? The good news is that if you're thinking about this now, you'll have plenty of time to get through the application process.

If you don't plan to pay the card off in full, rule store cards out first. They are almost always very poor value, which is why they need to offer big incentives to sign customers up.

0% on purchases cards allow you to borrow money interest free for a period of time. 0% balance transfer cards let you transfer an existing credit card debt in return for paying a fee. Check TheRateTart credit card guide for a more detailed explanation.

But make sure you know what you're getting into. If you borrow money on a credit card and don't pay back in the interest free period you are likely to pay far more than you would for a bank loan.

And if you do pay off some of the debt early, expect that the debt that you pay most money on (the highest APR), is the part of the debt you pay off last.

UK payments association Apacs has announced that it is about to release "straightforward advice for young people thinking about getting their first plastic card."

Young adults, aged between 18 to 24, own an average of 1.72 cards. "Young people are spending ever-increasing amounts of money and it is therefore vital that they make a considered decision before choosing which product they use," said Sandra Quinn, Apacs head of communications.

The guides will cover how to choose the best credit card for a variety of situations, how to protect against credit card fraud and will provide advantages and disadvantages of available credit cards.

The two part series is part of a consumer advice series aimed at simplifying personal finance.

According to research 18 million consumers use their cards at least once a week.

Online uses has soared over the past year and 20 million UK consumers shop online each week.

69% of all men use their cards to make online purchase, a number that is quite a lot higher than female internet usage of just 52%.

While many consumers rack up bills and interest, 19 million (approximately 57%) claimed that they pay off their cards every week.

Research has shown that many consumers save more money than they owe on their credit cards and this actually costs them money!

The average person in the UK has 2 or 3 credit cards with just over £1,000 of debt while they also have savings of approximately £2,500.

It is clearly unwise to be racking up annual interest on your credit cards of around 15% if your savings are paying you a measly 5 or 6%.

If you are in this situation you should immediately clear your credit card debt as this will save you money. You could also visit TheRateTart to look at the new credit card offers and perhaps look for a card that allows you to offset your savings against it, so you are maximising your returns.

Most UK consumers between 34 and 41 are in this situation and could immediately save money by clearing their cards before saving.

After 3 years of hard work and spending frugally at University the average student is rewarded with a send-off which includes an average debts of over £12,000.

Added to all the usual pressures of needing to find a job, new home and plan a career, etc this debt can be an unbelievable strain on students.

The best way to avoid debt is to live within tight budgets and to refrain from unnecessary spending.

Credit Cards are one of the biggest pitfalls for students desperate to get their hands on cash and credit and students are best advised to be cautious.

If they can avoid cards they absolutely should do as the bills rack up over the years and add even more pressures pre and post graduation.

Many credit card customers have switched to new suppliers and been surprised to find they are still being charged by their previous credit card suppliers.

Rather than simply cutting up your old cards customers should always ensure they contact the card suppliers to alert them that they are cancelling he card.

This will also ensure that you are covered from any fraudulent activity that could otherwise occur on your card.

Once your supplier agrees that your account has been settled and cancelled you should no longer be charged any future amounts.

As most people's credit card circumstances are always changing it is important for consumers to constantly ensure they keep checking the market for new card offers.

The card may be the best one right now but this may not be the case if your requirements change or if the card's introductory offers expire.

How do you know what card will best match your needs?

Consumers who intend on taking out a card to pay off all bills immediately should consider cash back deals while those who are looking to spread existing payments should look for the best interest rates, such as the current 0% offers available on TheRateTart.

Beware when using your credit card to make a cash withdrawal as the 0% interest does not usually cover cash withdrawals however using your card for purchases will do, although you may need to make a minimum payment of £100.

Always check the small pring when you compare the credit card market.

Costly Christmas paid for on credit and rising costs in many areas of consumer spending from gas bills, supermarkets to petrol and mortgage rates is causing distress across the country with increasing numbers of people experiencing "debt".

In many cases debt is unavoidable but what can be avoided is being ripped off by credit card companies.

We at TheRateTart are surprised to hear how few people in debt shop around to get a better credit card. Many people in debt are paying huge interest rates on their credit cards without realising how much they could save by simply comparing the "interest rates" on current card offers or other "penalties" or "rewards" they offer.

We recommend you move your debt to low interest cards, preferably 0% interest cards with 0% on balance transfers as well. This could save you £100s a month in interest depending on how much credit you have used.

More people are asking for financial help from the government than this time last year and more people are experiencing difficulties. Reducing the costs on your credit cards could be crucial.

Shoppers up and down the country are looking for bargains in the January sales that provide rewards such as Nectar or the Sony Card which provides fantastic incentives for any purchases on Sony products.

Other cards such as the Capital One cashback card pay 4% cashback on all purchases for the first 3 months.

This could save shoppers significant amounts of cash.

Visit the Cashback and Reward section of TheRateTart to see what rewards you can get from the shopping you require.

UK consumer's are becoming increasingly reliant on their credit cards according to a recent survey by the Post Office.

25% of all respondents conceded that they are struggling to come to terms with rising costs (such as mortgage rates, utility bills and the cost of Christmas).

With this increasing reliance on credit it is important to ensure you have the best available offer for your credit card.

View our 0% balance Transfer offers table so that you pay the minimum interest on your spending, but remember, you will have to pay the balance off at some point in the future.

There has been a steady global rise in credit card fraud recently where people posing from companies call up credit card users to check personal credit card information details.

You should never give your credit card details to anyone unless you specifically approached that company for their products or services. Do not be fooled into handing out your credit card information to anyone unless you are absolutely certain they are not trying to scam you.

If you are concerned yo may have given out any important information you should contact your card supplier immediately and ask them to check the recent history on the card or to cancel the card so no future fraudulent activity can occur.

The numbers of shoppers online has more than doubled recently and this is why it is so important to be aware of fraudsters.

Have you seen your credit card costs rising recently? Many people have noticed that costs are being levied for a number of different reasons.

These include cash advances, late payments, annual fees, no usage fees, foreign transfer fees, hidden balance transfer fees and a huge list of different reasons.

It is vitally important to read the terms and conditions before taking out a card. Even better, have a look at your current credit card bills and see what is costing you money.

Remember to check the small print. Don't just look at the website as the penalties are often hidden.

For example, many of the cards that promise you 0% balance transfers actually now include a handling fee.

So, if you transfer £1,000 and your handling fee is 3% you will pay a £30 handling fee.

While this may be a small amount if you are looking to make a large transfer such as £10,000 you can end up paying a substantial fee.

All card providers will need to make you aware of these transfer fees in their small print.

Visit TheRateTart's 0% Balance Transfer Cards to compare the best offers and remember to check all the hidden costs.

New customers are worth a lot to credit card companies and you often find card companies offering something extra such as a free flight, an Amazon or other gift voucher to new card customers to win your business.

These give-aways can often be redeemed without costing you a penny. Also, many card suppliers offer 3 or 4% cashback on any spending you process through them and as long as you pay these off in full each month so as not to incur any interest, you can make some serious money here.

To take advantage of these offers you are usually required to spend on the cards but fortunately there are often no minimum spend requirements so whatever you spend, as long as you pay off in full, will earn you money back.

All shopping including supermarkets, mail-order or purchasing online can benefit from these giveaways. As long as you pay off the card in full each month you will not pay any extra interest.

For example choose the Virgin Atlantic Credit Card to get 1 Flying Club mile for every £1 spent, 2 Flying Club miles for every £1 spent direct with Virgin Atlantic or Virgin Holidays 3,000 bonus Flying Club miles upon first spend.

Alternatively, choose the Capital One Cashback Card to receive a massive 4% cashback on all purchases in first 3 months.

Visit TheRateTart's CashBack and Awards, or the AirMiles section to compare the best give-aways.

It's a good time to take advantage of the fantastic 0% credit card deals available. Egg has changed the introductory period for its Credit Card and now provides 0% on balance transfers until April 1st 2009 and 0% on purchases until 1st April 2008.

These rates are 'correct at time of writing'. Visit TheRateTart to find out more about Egg and other available offers: 0% Balance Transfers

Earn 12% gross per anum/AER. Really?

Well, like most things these days, the answer is yes, but in some senses, no. You can earn 12% gross p.a./AER. However, at the end of the year, the real return is closer to 6.5%. They key word here is "gross".

Let's look at the example from Alliance & Leicester's website.

"If you invest the maximum of £250 per month, a total of £3,000 will be paid into your account during the 12 month term. At 12.00% interest, you would earn £195 gross."

A £195 return on £3000 is 6.5%. As mentioned, the key word here is gross. The website states - "Gross is the interest paid before tax". So 12% is your pre-tax interest rate.

As with most accounts like this, they have a rigid set of rules that must be adhered to in order to gain the full benefits.

• Withdrawals - No withdrawals are permitted. If you need access to your money, the account must be closed.
• Minimum balance - £10.
• Maximum balance (over fixed 12 month period) - £3,000
• Minimum Monthly Deposit - £10.
• Maximum Monthly Deposit - £250
• Interest frequency - Annual. At the end of 12 months on the anniversary of the first payment due date.
• Applicants age requirements - 21 and over.
• Application options - Apply online or by phone as part of a new Premier Current Account
• Statements - Internet access is required to view statements.

A few other details to know:

The Premier Regular Saver account (with an interest rate of 12.00% gross p.a./ AER) is only available to those opening a new Premier Current Account.

To be eligible for Premier Regular Saver at a rate of 12.00% gross p.a./AER: applicants must not currently hold any A&L current account and applicants must not have held any A&L current account in the three months preceding a new Premier Current Account application.

Further information, including full Terms & Conditions, can be found here.

Barclaycard Business today announced the launch of a carbon-offset corporate charge card that will enable customers to offset carbon emissions associated with air travel.

The card is the first commercial card in the world that helps companies to offset of the environmental impact of business air travel. By tracking a company's spend in this area, Barclaycard Business Sustain enables corporate customers to develop a clearer picture of their carbon footprint. Barclaycard Business are then able to work with their customers to help offset their carbon emissions.

Barclaycard Business manages the whole carbon offset process on behalf of its corporate customers by providing them with commission-free access to the Certified Emission Reduction Market via Barclays Capital's Emissions Trading Desk. Barclays Capital purchases Certified Emissions Reductions (CERs) on behalf of the customer at zero commission and then arranges for the CERs to be cancelled, effectively ensuring that the certificates are non-tradable in the future. As a result, the customer receives cancelled CER certificates, and the knowledge that the environmental impact of their business travel has been offset.

The launch of Barclaycard Business Sustain follows the introduction by Barclaycard Business of a similar card in partnership with Deloitte, the global consultancy firm. The Deloitte card was introduced in May 2007, where it was met with tremendous enthusiasm amongst employees and where it has already resulted in significant benefits in terms of carbon offset.

A series of recent reports have confirmed what we at TheRateTart have known for some time. Balance Transfer Credit Cards are here to stay!

According to the latest report from Defacto published last week there are now more zero-interest credit cards in than at any other time.

Report author David Black said: "Zero introductory offers on both balance transfers and purchases show no signs of abating. The market continues to reward disloyalty by reserving the best deals for new customers."

What is lesss clear cut is how easy it is to get your hands on one of these cards, and whether this has been made more difficult by the recent credit crunch.

The banking body Apacs claims that between 40% and 50% of all applications are turned down, and Barclays and HBOS openly admit they reject at least half of all requests.

By contrast Lloyds TSB said its acceptance rate had increased following the launch of a new Airmiles card. A spokesman put this down to the majority of applicants already holding current accounts with Lloyds TSB and the quality of applications generated by the new card.

And despite media stories of customers with no previous credit problems suddenly finding themselves turned down for new credit cards, the major banks are insisting it is business as usual.

Barclays, HBOS, HSBC, RBS and Capital One are adamant their underwriting has not changed since the start of the credit crunch. An HSBC spokesman said: "Our decline rate has been constant for the past two years. We are refusing exactly the same proportion of applicants as in October 2005."

Media myth or an industry in denial? Post your experiences in TheRateTart Forum and let us know what you think.

Sainsbury's have announced the launch of a new credit card which provides Nectar points equivalent to two per cent cash-back on all purchases within the supermarket.

In what TheRateTart is certain must be a complete coincidence, the supermarke bank also released a report promoting the benefits of cash-back and rewards credit cards.

Head of cards, Donald MacLeod, said that he expected the industry to focus on loyalty more in the coming months, moving away from introductory interest rates as savvy consumers start looking closer at the small print.

He suggested that customers are now "reasonably aware" of the pitfalls of introductory rates. "They're not particularly new…so there's been a reasonable period for everyone to become acquainted with them and how they operate."

He added: "What we might be seeing is a move away from introductory rates on interest to an introductory offer around loyalty."

New research from the supermarket bank reveals that 41 per cent of all credit cards currently offer some form of financial reward.

Here at TheRateTart we believe that the right credit card for you is determined by your spending haits, financial situation and financial goals. Whilst a cash-back credit card will be great for some customers it could be a financial disaster for others.

To understand how the different offers work and locate the best credit card deal for you, go straight to TheRateTart Guide to credit cards here.

While the complexity of cash back offers on credit cards has grown, plastic in this ilk is still a useful thing to have, according to a report by consumer finance firm Defaqto, entitled Credit Cards in the UK.

Acording to the report the number of these offers has fallen and those that remain are becoming more difficult to compare.

Consumers have to wade through a raft of terms and conditions, special offers and restrictions before they can understand what is really on offer.

Principal consultant of banking David Black, author of the report, said: "Cash back credit cards offer a genuine return for card holders but are only appropriate for those people who always pay off their entire balance every month."

He went on to suggest that customers could make the most of cash back offers by using more than one card "selectively".

Nationwide have called for credit card companies to highlight the significance of the order in which their payments are made before they are forced to by regulation in October 2008.

Nationwide director Jeremy Wood said: "Most providers apply payments to the cheapest debt first making it more expensive for the consumer and more profitable for themselves.

"What seems like a good deal at first can become unnecessarily costly for cardholders unless they clear their balance in full.

Earlier this year some commentator claimed Nationwide's "Proud to be different slogan" was all sping and no substance when the building society went back on their promise to offer the same mortgage deals to all customers rather than restricting preferential rates to "brand new customers only".

But balance of payments is one area where Nationwide has a leading position in making their credit card terms and conditions a better deal for customers. Not only have they included a Summary Box setting out how the provider applies payments, but they are also one of the few providers whose credit cards pay off the most rather than the least expensive debt first.

In effect, they are sacrificing profit to treat customers fairly.

Nationwide, TheRateTart salutes you!

The Co-operative Bank has joined the ranks of credit cards targeting consumers' consciences as well as their wallets. The Co-Op think card joins Barclaycard Breathe, the World Wildlife Fund and a host of other charity credit cards.

However Co-Op claim their credit card is different because it partners with companies chosen specifically for their "strong ethical credentials" with customers receiving a special rate of interest of 7 per cent following a purchase at one of the selected businesses.

David Anderson, Chief Executive of the Co-operative Bank said: "According to our own Ethical Consumerism Report, conscious spending has been increasing at an average of 15 per cent a year since the start of the decade and all the signs are that this growth is set to continue.

"We want to reward those customers who make ethical choices and encourage everyone to really think about how their choices impact the wider world, which is why we have developed the new think card."

Partners who are involved in the offer include Ikea, thetrainline.com, Adili.com and Lush.

Moneyfacts this week released new research showing the cost of using credit cards is rising for many customers.

The worst news is for those using credit cards for cash withdrawal. Alliance & Leicester's fee for withdrawing cash using a credit card zoomed up the most, from 2.25% to 3% just last weekor £3 for every £100 withdrawn. Meanwhile recent rises of 0.5% have come from the likes of Bank of Scotland, Halifax, the Co-operative Bank, Nationwide and Yorkshire Building Society.

To make matters worse, if you don't pay off your balance in full each month, then cash withdrawals are even more expensive. The Smile Gold Visa Card interest rate for cash withdrawals rose from 14.9% to 23.9%, and the rate for Yorkshire Building Society Classic Card shot up from 15.4% to 23.9%.

Worst of all for dedicated rate tarts are the recent rises in Balance Transfer fees from Alliance & Leicester, NatWest, Royal Bank of Scotland and Tesco Personal Finance.

Frankly now that credit card providers have had their penalty charges capped its hard ly surprising they are looking to other ways of propping up their profits. Which makes it all the more important for consumers to look beyond the headline offers and understand how their financial products actually work for the banks.

Because only once you understand your enemy, can you start working to defeat them.

2006 saw many financial pundits predicting the death of the balance transfer credit card.

But as we head into the tail end of 2007 there are more opportunities than ever for dedicated rate tarts to make money at the banks' expense.

Egg, the online bank, today announced the extension of the 0% balance transfer period on their credit card to 14 months. The join a number of providers offering a significant improvement on the typical 12 months 0% interest credit cards. These include Virgin and Barclaycard.

The full details of each card are below:

EGG

• Balance Transfers*: 0% until 1 January 2009
• Purchases: 0% until 1 February 2008
• APR: 16.9% APR typical variable
• 0% anniversary offer for up to five months on balance transfers (plus fee**) made in November 2009 and November 2010
• See your various online accounts in one place for free with Egg Money Manager
• Great offers with our selected online retailers

*On all introductory balance transfers there is a 3.0% handling fee. ** On all balance transfers made in anniversary periods there is a 2.5% handling fee.

VIRGIN

• Balance Transfers : 0% for 15 months
• Purchases : 0% for 3 months
• APR : 15.9% APR typical variable
• Get a credit card that gives you 10% off at Virgin Megastore, Virgin Holidays and other great deals

BARCLAYCARD PLATINUM

• Balance Transfers : 0% for 14 months
• Purchases : 0% for 3 months
• APR : 14.9% APR typical variable

American Express has thrown down the gauntlet to current cashback credit card market leaders Capital One. Could this be anything to do with the certain splurge on credit cards in the run up to Christmas we wonder?

Capital One offers 4% cashback for three months, followed by 1% thereafter, whereas the American Express deal provides 5% for the first three months, followed by tiered rates ranging from 0.5% to 1.5%, dependent on your annual spend. Neither card imposes a maximum cashback limit and both pay out on an annual basis.

So what does that mean in terms of money in the bank. For someone spending £1K per month on day to day expenses (shopping, travel etc) for 12 months , Capital One would yield £210 versus £247.50 with American Express. Not bad just for spending what you have to spend anyway.

But as always, there is a catch.

The Standard APR on most cashback credit cards is between 14% and 17%. So if you don't pay off your balance in full each month don't even consider cashback. The payments you make in interest will quickly cancel out the cashback you can earn.

Sadly these 'gotcha' deals are all too common in the finance industry, meaning it's important for consumers to look beyond the headline offers and understand what they are really signing up to.

More than a million householders have used a credit card to pay their mortgage or rent at least once over the past 12 months, a poll for the housing charity Shelter reveals today.

The survey, conducted by YouGov polled 2,000 households last month. It found that 6% of householders paying mortgage or rent reported using a credit card to make payments, rising to 7.5% of younger people aged 18-24, who were trying to keep a foothold on the first rung of the housing ladder.

Adam Sampson, Shelter's chief executive, was shocked by the results. "The number of people hit by the credit crunch, interest rate hikes and unaffordable housing costs, are rapidly rising. For many people trying to keep a roof over their head, desperation is driving them to short-term, high-cost borrowing," he says.

To make matters worse, people with poor credit can pay up to 40% interest on credit cards as opposed to the more typical 14 to 16% Standard APR.

Brits are set to switch credit cards in their millions this year, according to new research conducted by one bank.

Figures from Abbey suggest five per cent more people than last year will change their credit card provider in 2007, bringing the number up to six and a half million.

Estimates put the amount of money "on the move" between credit cards this year at a total of 11 million.

"These figures just show the intense competition in the credit card market," said Roger Lovering, the managing director of Santander Cards.

"With £11 billion at stake, it's the credit card with the best deal that wins," he continued.

The study also found that the main reasons for customers to switch to another card were to take advantage of a cashback offer (one in three), or to enjoy an interest-free period on new balances (29 per cent).

There are clear financial benefits to being a rate tart. Savvy customers can save themselves hundreds of pounds in interest payments by switching from balance transfer card to balance transfer card when the introductory offer period expires.

But recent media have suggested that serial switchers are risking their credit rating with their behaviour, scaring off both novice and veteran tarts.

In reality getting a black mark on your credit rating by switching cards is hardier than the doom mongers would have you believe. By following these simple rules you can make money at the expense of credit card companies without creating problems with your credit profile;

1.Don't miss your minimum repayments
Not only does missing a payment lead to fines and damage to your credit rating, it can also lead to the 0% offer period being ended early. The best way to avoid this is to set up a direct debit to pay off the minimum amount each month. If you can afford it pay off more so that you reduce as much of the debt as possible during the interest free period.

2.Spread card applications out
Making numerous credit card applications within 2 or 3 months of each other can make credit scorers suspicious. As most balance transfer cards have at least a 6 month 0% period there should be no need for such high frequency applications. If you do get rejected don't make the mistake of applying to every other credit card provider in turn as each rejected application will lead to more damage to your credit rating. Find out why you have been rejected first and repair your credit rating before making further applications.

3.Cancel Old Cards once the intro offer period runs out.
The more credit you have, the less likely you are to get further credit, even if you're not actually using that credit. To avoid this trap simply cancel your old credit card once you have transferred the balance onto the new card.

If you want to check out your credit rating for free click here to get a free trial of Experian's Credit Expert service.

Looking for an interest free overdraft or a 0% APR Unsecured Loan but having no luck?

Once again the ever versatile balance transfer credit card may be the flexible friend you're looking for.

That's because many balance transfer cards now allow you to transfer debt from a current account overdraft or unsecured personal loan, as well as another credit card. Many of the credit cards issued by MBNA offer this feature, including the Virgin Credit Card, which currently offers a market leading 15 months 0% interest on balance transfers.

You can even use this feature to make money. By transferring funds from the credit card into an in credit current account. Once you have done this transfer the funds into a high interest savings account and LEAVE IT ALONE.

At the end of the balance transfer period withdraw the amount you owe on the credit card, pay off your debt and keep the savings account interest for yourself. Apply for another balance transfer credit card and repeat.

In 2000 online bank Egg introduced balance transfer deals to the UK. The initial offer was for six months 0% interest on balances they transferred from another credit card.

The feature was so popular that before long other cardholders were forced to offer balance transfer deals of ever increasing lengths to have any hope of attracting new customers.

But this is where the law of unintended consequences comes in. With so many cards offering 0% deals, savvy consumers realised they could become serial balance transferors, moving their debt to a new card as the 0% period expires?

And so the rate tart was born..

People began to systematically switch their balances from card to card, in effect obtaining an interest free loan courtesy of the credit card industry.

In May 2005, Egg announced that all balance transfers would now attract a 'handling fee' of 2% of the amount transferred. The charge would be capped at £50. Other card issuers quickly followed suit, and now most balance transfer deals have such a charge.

But still this was not enough to put off the growing army of rate tarts and in time the cap on the handling fee was removed by most credit card issuers. By 2006 financial journalists were predicting the end of balance transfer deals as it was felt that the costs were becoming unsustainable.

But as of the time of writing there is no sign of this happening. In fact quite the opposite.

Consumer now appear to have more choice than ever. With 15 month 0% interest offers, Low Rate Life of Balance Transfer deals and even a few cards still offering fee free balance transfers , there really is something for everyone.

2007 is turning out to be an up and down year for the 48m Brits who use credit cards. Headline rates have steadied, and consumers have been benefited from reductions in minimum fees, increases in the extent of card issuers' liabilities for purchases abroad, and from increased transparency on the value of credit card protection insurance.

But on the minus side, the credit crunch has sparked fears that decline rate for credit card approvals are increasing. And away from the headline rates, the cost of borrowing is rising sharply as fees for cash withdrawals and foreign purchases, and rates for cash withdrawals are becoming more expensive.

There are now more 0% credit cards available now than ever before. Defacto published a report last week showing the growth in 0% card offers: more than 53% of card issuers now offer 0% deals on purchases, compared with 45% last October and 20% in 2002.

David Black of Defacto said: "0% introductory offers on both balance transfers and purchases show no signs of abating. The market continues to reward disloyalty by reserving the best deals for new customers."

So it looks like credit card companies have worked out how to stem the losses caused by the first wave of rate tarts, and use balance transfer fees to make 0% cards profitable.

And getting a good 0% card offer is not a given. The card industry body Apacs claims that between 40% and 50% of all applicants are rejected, with both Barclays and HBOS openly admitting that they reject at least half of all requests.

So, has the credit crunch made this worse? Opinion is divided: MoneyExpert have claimed that there has been a sharp rise in the last couple of months in the number of applicants turned down for credit. But the small sample size means the results are less than conclusive: a 2,000 person sample 6 months ago recorded a 6% refusal rate, compared with a 1,000 person sample six months later that recorded 9%.

The first sample was carried out by YouGov, and the second by TNS. YouGov described a 3% variation as within the margin of error: "Even if the research had been conducted by exactly the same firm and on the same basis, such a variation is well within the margin of error. It is not statistically significant."

MoneyExpert are unrepentant. Their spokesman said: "We took advice from independent polling experts who are of the view that given the research sample sizes a 3% change could mean no change at all or equally that there had been a 6% increase. This is the nature of research."

The card issuers say that there has been no attempt to tighten up. Barclays, Royal Bank of Scotland and HBOS say that their rules have not changed. An HSBC spokesman said: "Our decline rate has been constant for the past two years. We are refusing exactly the same proportion of applicants as in October 2005."

Lloyds TSB claims that acceptance rates have increased: "We don't refuse many applications because most of our credit card applications are from current account customers, who we know a great deal about. But our new Airmiles card has brought in high-quality applications so we are accepting more than usual."

So there are more 0% cards on the market now than ever before, and getting hold of one does not seem to be getting harder. Is this unqualified good news?

Only if you are careful to use your card wisely. Most card providers have significantly raised the cost of using their cards, with 125 separate rate and fee increases announced within the last two months. They have been hit by Office of Fair Trading's enforced reduction of fees, such as late payment charges, combined with the latest moves to reduce the easy profits they have made in the past from payment protection insurance. Sanjiv Yajnik, MD of Capital One Europe, said: "We have not changed any of our underwriting criteria. If anything, our acceptance levels are going up.

"But we are heading for a slowdown in consumer spending and borrowing, and combined with the OFT moves it is fair to say that the UK credit card market has become a lot less interesting for issuers. The inevitable result will be that there will be fewer products available, and those that are will become less competitive."

If you take a look at the easy to make rate and fee increases that generate money for credit card companies without hurting their advertising, you can see this clearly.

The cost of using credit cards to make cash withdrawals is rising, and can be seen both in the fees charged to withdraw cash, and in the rates of interest charged.

The AA, Alliance & Leicester, Bank of Scotland, Halifax and Intelligent Finance have increased their cash withdrawal fees to 3%. The Co-op, Smile, Nationwide and Yorkshire Building Society have raised theirs to 2.5%.

Interest charged on cash withdrawals has also risen dramatically. The Co-op has increased its credit card interest rate by 5% to 23.9%, which is the same rate as Smile. The most expensive in the UK are American Express at 27.9% and Goldfish at 26.8%.

And charity cards are not excluded from this. Nationwide has increased its interest rate by 4% to 22.9% on its Comic Relief Visa. Halifax has increased charity card rates to 23.95%.

Foreign currency loading has increased from 2.75% to 2.95% at Bank of Scotland, Intelligent Finance, the AA and Britannia.

So 2007 has been a mixed bag for British credit card users. As ever, it pays to know how to use your card. If you're in any doubt, take a look at TheRateTart credit card guide, and pay close attention to the fees and charges that make credit card companies easy money.

It may seem like a long time until Christmas. But with credit card companies taking up to 6 weeks to process new applications, now is the time to take a look at what's in your wallet. Having the wrong plastic could mean your festive spending leaves you with a serious new year hangover.

To find the best Christmas Credit Card for your needs read on.

It may seem like a long time until Christmas. But with credit card companies taking up to 6 weeks to process new applications, now is the time to take a look at what's in your wallet. Having the wrong plastic could mean your festive spending leaves you with a serious new year hangover.

To find the best Christmas Credit Card for your needs read on.

If you are sure you can pay off any spending straight away, go for a cash back or rewards deal. These offer you either cash or points as a percentage of your spending. Typically points can be spent on money off flights, shopping, holidays and other treats.

At time of writing the best cash back deal on the market is the Capital One Cashback Card, offering 4% cash-back for the first 3 months. Whilst the MBNA Sony Card is offering a free MP3 Player to new customers for a limited period.

For those of you planning to pay for Christmas over a few years, go for a 0% interest on purchases credit card. These effectively provide you with an interest free loan for the duration of the 0% offer. As these often come packages with a 0% on balance transfers offer, you may also want to consider transferring any existing credit card debt to avoid paying the standard APR. At present one of the best 0% on purchases credit cards is the Capital One Platinum Card, with an interest free period running up to August 2008.

Whichever card you go for, remember to spend sensibly and ensure you are able to comfortably afford the minimum repayments. It is all too easily to go on a festive splurge for family and friends. But just one missed repayment could see your credit rating take a nose dive, making it difficult to borrow money in future.