The Rate Tart

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.

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.

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.

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.

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.

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.

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.

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

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.

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

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.

Balance Transfer Credit Cards that do not charge a balance transfer fee have been an endangered species for some time now.

But if you look hard enough they can still be found. Unsurprisingly these rare beasts do not offer market leading balance transfer periods.

Balance Transfer Credit Cards that do not charge a balance transfer fee have been an endangered species for some time now.

But if you look hard enough they can still be found. Unsurprisingly these rare beasts do not offer market leading balance transfer periods.

But if you can pay off your outstanding debt relatively quickly, these three cards are worth a look.

0% Balance Transfer cards with no balance transfer fee:

Provider	Card	0% period
Norwich & Peterborough BS	N&P Visa	6 months
Ulster Bank	Ulster Bank Visa/MC	6 months
Northern Bank	Northern Bank MC	6 months
MC = Mastercard

Transferring a £5000 balance to one of these cards instead of one with an uncapped 3% balance transfer fee (or handling fee as it is sometimes called) could save you £150.

Even if you need longer than 6 months to pay off your debt, it's worth considering going for a credit card with no balance transfer fee first and pay off as much as possible in the six month interest free period. Although you will need to take out another balance transfer credit card later on, the balance transfer fee you pay will be less because the percentage fee will be charged on a lower amount.

So once again - Rate Tarting lives. You just need to know where to look.

The vast majority of 0% cards charge a fee these days as the banks and credit card providers carry on the battle to make life difficult for Rate Tarts.

Fees not only cost money but they also make it harder to pick the right card for you. The problem is balance transfer fees can be deceptive. Whereas the fee is paid on the whole outstanding balance, when you pay off interest over the year, you pay it on a constantly shrinking balance (so long as you are making at least the minimum monthly payment).

The vast majority of 0% cards charge a fee these days as the banks and credit card providers carry on the battle to make life difficult for Rate Tarts.

Fees not only cost money but they also make it harder to pick the right card for you. The problem is balance transfer fees can be deceptive. Whereas the fee is paid on the whole outstanding balance, when you pay off interest over the year, you pay it on a constantly shrinking balance (so long as you are making at least the minimum monthly payment).

So if you pay a fee of 2%, it'll probably be Balance Transfer Credit Cards that do not charge a balance transfer fee have been an endangered species for some time now.

A good rule of thumb is that if you can pay off the debt pretty quickly, going for a low fee is particularly important. But if you're going to take a year or more, the size of the fee doesn't matter as much, instead look at the period for which the 0% period lasts.

Click here to check out our credit card comparison tables and apply for a credit card that will make money for you, not the banks!

In January 2006 many financial journalists were predicting the end of balance transfer credit cards. They reckoned that Rate Tarts were costing the banks £1bn per year in lost revenues. Not only would interest free credit card deals be withdrawn, but customers with a history of shifting cards would be rejected when applying for new credit cards.

18 months later there is no sign of these dire predictions coming true. Our table below shows just a small sample of the balance transfer credit cards currently on the market. Not only are the 0% interest offers longer than ever, but it's still possible to find cards with no balance transfer fees whatsoever.

In January 2006 many financial journalists were predicting the end of balance transfer credit cards. They reckoned that Rate Tarts were costing the banks £1bn per year in lost revenues. Not only would interest free credit card deals be withdrawn, but customers with a history of shifting cards would be rejected when applying for new credit cards.

18 months later there is no sign of these dire predictions coming true. Our table below shows just a small sample of the balance transfer credit cards currently on the market. Not only are the 0% interest offers longer than ever, but it's still possible to find cards with no balance transfer fees whatsoever.

Credit Card	0% Interest Period	Balance Transfer Fee
Virgin Credit Card	15 months	2.98%
Capital One Platinum Card	12 months	1.7%
NatWest Classic Card	13 months	2.5%
RBS Gold Card	13 months	2.5%
Northern Bank Mastercard	6 months	0%

What the pundits failed to take into account was that any credit card provider ending 0% deals would be sure to see a mass exodus of customers to the competition.

This approach could only work if all the companies colluded to end these deals at the same time. Such collusion is illegal under UK law.

And when you consider the record £270m fine imposed on British Airways this year for colluding with Virgin on fuel surcharges, it's perhaps easy to see why credit card providers would balk at taking such a risk.

Balance Transfer Credit Cards are an excellent tool for Rate Tarts to make money at the expense of Credit Card providers. But did you know that the majority of cards come with a sting in the tail if not used carefully.

The sting is called the credit card 'payment hierarchy'. This refers to the order in which debts that attract different levels of interest are paid off.

Balance Transfer Credit Cards are an excellent tool for Rate Tarts to make money at the expense of Credit Card providers. But did you know that the majority of cards come with a sting in the tail if not used carefully.

The sting is called the credit card 'payment hierarchy'. This refers to the order in which debts that attract different levels of interest are paid off.

For example, on your current credit card you may have a transferred balance at 0%, £1500 at an introductory purchase rate of 9.9% and £500 of cash withdrawals at the standard APR of 15.9%.

By far the majority of credit cards operate a negative payment hierarchy, meaning that the most expensive debt is paid off last, and therefore attracts interest the longest.

To avoid this trap you can either use separate credit cards for your balance transfers and those purchases you intend to pay off in full or in part monthly. Alternatively you can seek out credit card providers who offers a positive payment hierarchy, such as Nationwide or Saga.

The latter has the advantage of simplicity. However the former means you are more likely to get a better balance transfer deal. The Nationwide Gold Card and Classic Card offer 0% for 10 months with a 2.5% transfer fee. Compare that to the Capital One Classic Card offering 12 months interest free for a 1.7% fee. Or the Virgin Credit Card offering a whopping 15 months at 0% interest with a 2.98% handling fee.

As always the most important thing is not to get caught out. So thing long and hard about how organised you are with your finances and which option will work best for you before making a decision. And whatever you do, make sure you are never, ever paying the standard APR!

Internet Christmas shopping is something that's clearly here to stay. Online spending is expected to top £10bn this Christmas, up from £7.66bn last year. The latest surveys suggest that women will spend an average £376, and men £365.

It's easy to see the advantages: convenience, no queuing, and speed for example. But at the same time, it's worth keeping a few guidelines in mind:

1. Create a list of the things that you want and visiting a number of comparison sites to make sure that you find a good deal.

2. Be aware of delivery times as some presents may take up to 28 days for delivery

3. Set yourself a strict budget as it's easy to get carried away online

4. Start saving long before Christmas: if you must use credit, don't fall into the trap of paying heavily for Christmas later

5. Always pay through a secure method

And finally, it's well worth your while to shop around for cards that offer special deals in time for Christmas. If you pick a 0% credit card for example, you will pay just the cost of the goods providing that you pay off the balance in time.

Equally, if you are confident that you will be able to pay off the balance in full, a cash back credit card will effectively pay you to shop.

The latest innovation in the balance transfer credit card market is the Life of Balance Credit Card.

These are similar to traditional balance transfer credit cards in that they let customers pay off debt from another credit card, loan or overdraft at a lower rate of interest.

Where they differ is in the interest rate paid and the duration of the introductory offer. Rather than offering 0% interest for 12 months, Life of Balance Credit Cards offer an unusually low APR (typically between 3.9% and 9.9%) for as long as it takes you to pay off the amount transferred.

Life of Balance Credit Cards also tend not to impose balance transfer fees, whereas credit cards offering 0% on balance transfers now charge uncapped fees of between 1.7% and 3% of the amount transferred.

Which is best for you? That depends on how quickly you are going to pay off the debt, whether you are organised enough to switch credit cards before the 0% balance transfer period ends, the amount you will pay in interest versus balance transfer fees etc. Only you can decide.

At the moment only a small number of credit card providers are offering this product. Amongst them is the Marks & Spencer &More credit card , but expect this to increase over the next 12 to 18 months.

In credit cards as in all things, if it looks too good to be true, it probably is.

These days there are a number of 'do it all' cards that not only offer 0% interest on balance transfers and purchases, but also cash-back, rewards or charity donations.

Examples of these giants of the credit card world include the Sony Card, BA AMEX Reward Card and the WWF Credit Card.

The sting in the tail of this apparent generosity is a little clause called the 'hierarchy of payments'. This explains in what order spending on the credit card is paid off.

In many cases this is not the order in which the debt was incurred. Nor is the debt with the highest interest paid off first. Quite the opposite - the debt with the lowest interest is paid off first, leaving the most expensive debt to accumulate interest as long as possible.

The credit card companies know this. They hope customer's will not pick up on it. The following example shows how they make money from this fact;

Joe moves £5000 onto a 12 month 0% balance transfer credit card that also offers reward points. He then uses the credit card to pay for a holiday costing £2000 to take advantage of the 3 month 0% on purchases offer.

At the end of the 0% offer period the £2000 spent on the holiday starts to attract interest at the typical APR of 15.9%. The hierarchy of payments means that Joe is now trapped into paying a high rate of interest until he has paid off the £5000 balance transfer. Even if he wanted to pay off the high interest debt in full, the credit card terms and conditions mean he can't.

The way to avoid this is simple - if you want to earn credit card reward points and get 0% on balance transfers, get one credit card for each. And never, ever mix them up.

In the last 12 months many financial journalists have been predicting the death of the credit card Rate Tart.

It was said that firms were wising up. They would no longer stand by and let customers benefit from interest free loans if there was to be no pay off at the end of the introductory 0% balance transfer offer.

And it's true that things have got more difficult. First the the balance transfer fee caps of around £50 were removed. Then the credit cards offering no balance transfer fees fell away. And more recently balance transfer fees have increased from around 1.5% to between 2% and 3%.

But what has consistently not happened is the death of the 0% balance transfer deal. In fact, recently they have been making something of a comeback.

Virgin Credit Cards have the leading offer with a whopping 0% interest for 15 months. But you can also get 13 months interest free with NatWest Credit Cards, RBS Credit Cards and Barclaycard. The number of providers offering 12 month deals are still too numerous to mention.

Looks like the credit card Rate Tart is going to be with us for some time to come...

Credit card customers are increasingly sophisticated about switching from one 0% balance transfer card to another. This practice (sometimes known as being a rate tart) means customers in effect get themselves an interest free loan.

Rate Tarts are not well liked by credit card providers. Instead of simply being able to charge extortionate interest rates they are forced to come up with competitive offers to attract and retain customers.

At Egg Credit Cards the latest innovation is the anniversary balance transfer offer. Customers get an initial 0% on balance transfers for up to 12 months. But they also benefit from a further 5 months 0% interest on new balance transfers at the 1st and 2nd anniversary of their account opening.

Whilst anniversary balance transfers are less hassle than getting a new balance transfer credit card, they are not really great value. The anniversary balance transfer attracts a fee of 2.5% and you only get a 5 month interest free period.

For the same fee you could get 13 months 0% interest from a NatWest Credit Card. For a 1.7% fee you could get 12 months interest free with a Capital One Credit Credit Card. Or for a slightly higher fee of 2.98% you could get a whopping 15 months 0% balance transfer from the Virgin Credit Card.

Surely that's worth a little extra effort?

Looking for 0% interest on a balance transfer but don't want to pay through the nose for the privilege? You may want to consider the Capital One Platinum Card. This credit card has had the thumbs up from Money Saving Expert Martin Lewis for it's low balance transfer fee.

At just 1.7% the Capital One Platinum transfer fee is up to 1.3% lower than other credit cards. MBNA, one of the largest credit card issuers, charge a standard 3% balance transfer fee, whilst NatWest and RBS Credit Cards charge 2.5%.

For customers with a balance of £5,000 the saving from the Capital One Platinum Card balance transfer fee could be as much as £65.

But at 12 months 0% the Capital One Card isn't longest interest free offer on the market. That honour goes to the Virgin Credit Card, which currently offers a whopping 14 months interest free.

If you can pay off your balance in 12 months go for the Capital One Credit Card. If you can pay off the full amount in 14 months the Virgin Credit Card is probably a better bet.

If you need longer than 14 months it's time to get the calculator out and work out which option is the most economical.

Depending on who you talk to, the Rate Tart phenomena where people swapped debt between 0% balance transfer credit cards and avoided fees and interest charges, cost the credit card industry something in the region of £600m. Its starting to look like the industry is getting its own back.

Over the past few years, there have been a number of changes to the way that customers are charged for transferring a balance to another credit card. Every 0% card on the market now levies a charge. Apacs, the card industry body, calculates that credit card providers are set to make £460m from balance transfer fees alone this year, and a further £71m from cash withdrawal fees.

So with total credit lending to individuals in the UK in September amounting to £217bn according to Credit Action, the initial £600m loss looks like a drop in the ocean. Now more than ever, its worth while comparing credit card terms to find the card that is right for you.