Credit Cards UK

Credit Cards: The Rate Tart Season Is Over

The rate, in which people are jumping from one credit card to the next, has diminished recently, leading to claims that the end of the “Rate Tart” is nigh.

“Rate Tarts” were created by the credit card companies themselves, with he introduction of 0% balance transfer deals, that seen the consumer be a little more savvy and took up these offers and moved their debt from one card to the next so that they were not paying any interest.

But investment bank Morgan Stanley carried out research and has claimed that the amount of people wishing to change their credit card in the coming months has taken a drop to a figure of 8%, but also said that by the same token the people who complied with the research, 19% said that they had been with their current credit card issuer for less than 2 years. Though the competition for customers by the credit card companies offering a better APR, may account for people jumping ship rather than to make the most of the 0% balance transfer deals that are out there.

Though the research also found that the most loyal of credit card holders, are beginning to take advantage of the different array of credit cards that are out there, with credit card holders who have been with their current lender for a period of six and a quarter years, have recently applied for a new credit card, with customers who have held their current credit card for four and a half years looking to change their plastic in the future.

The change in the view of customers that were moving their debt from one credit card to the next, has been put down to the fact that most credit card companies have added a charge to anyone wanting to take a 0% deal on balance transfers, to try and make people a bit more loyal to the credit card that they hold, the thought of these charges has slowed the amount of “Rate Tarts” down, as the credit card issuers try and rake back some of the cash that they have lost since the inception of the 0% offers.

Also the thought of a lower long term deal is a little more appetising to the customer who may be getting a bit tired of all the watching of dates and changes that the “Rate Tart” had to do as a hard rule, or suffer the consequences of interest charges.

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