AUGUST 18TH, 2005

It is going to become a harder struggle for 'rate tarts' over the coming months.

We reported the other week that credit card firms were increasingly starting to charge one-off fees for transferring any debts from a another card to them. Halifax One is such a card but gives you a fair few options of free interest spending for 12 months!

Moneyfacts have just released a report after research info credit card firms that 29 credit cards now charge the one-off transfer fee.

Wondering what a so called 'rate tart' is? Here goes. A 'rate-tart' is someone who regularly transfers their balance from credit card to credit card to take advantage of low interest introductory offers.

In all honesty we should all be doing it to take advantage of the potential savings.

The deals are apparently costing £1 billion a year to credit card firms but I somehow cannot see how it is affecting them that much. The positives for credit card providers certainly out way the negatives.

By introducing the fee they are making sure that they make a very small amount at least from you by transferring.

In an immediate effect it should not mean too much because the charges will be so low. It will be another avenue of battle once it becomes the norm to offer the low balance transfer fee.

Competition is fierce in the credit card arena so there should always be a great offer around the corner for consumers. The rivalry for new customers should still mean good news for borrowers.

Those now charging for transfers include Barclaycard, Citibank, Egg and MBNA.

The deals should not die out and we will continue to make sure we give you all the options in order to make the best choice for saving yourself some money in the long run.

Stay tuned for money saving tips in the near future on the latest credit cards...