Credit card tart

IT is possible to borrow money without paying a penny in interest. Yet you need to be a tart - a CREDIT CARD tart, that is.

Keeping up-to-date with 0% deals and swapping to them can save you a fortune. But whether you can get away with it depends on what type of person you are.

Much as debt can be dangerous, there are times when borrowing is necessary - such as to fix a leaking roof, mend a broken washing machine or buy a bigger car.

Used right, for those who NEED to borrow, credit cards are the cheapest way. And this is my masterclass on how to do it.

STEP 1: PLAN YOUR BORROWING

The formula's simple, borrow as LITTLE as possible and repay as QUICKLY as possible. To help, calculate it in reverse by basing your borrowing not on what you need but on what you can comfortably afford to repay each month.

And of course, NEVER borrow more than you need, even if it is interest-free, with the one exception of stoozers (those deliberately profiteering from 0% debt see www.moneysavingexpert.com/stoozing )

STEP 2: CHOOSE YOUR TECHNIQUE

Can you clear ALL the debt in a year?

If you can, you simply need a card with the longest 0% rate for purchases (go to Step 3). If you can't then:

Do you have a good credit score AND are you financially disciplined to apply for new cards on time?

If the answer's YES, then you're ready to become a credit card TART, disloyally moving debts from 0% to 0% deal. To start, you need the longest 0% rate for purchases.

If the answer's NO, then avoid tarting because you risk faltering and then the rate rockets. Instead pick a long-term low-rate card.

STEP 3: PICK THE TOP CARDS

To repay speedily or tart, pick cards with the longest new customer 0% offer for PURCHASES (other types exist). Don't worry about the APR afterwards as you should either have repaid all the debt by then or swapped to another 0% deal.

LONGEST 0% DEALS. Tesco's Clubcard Credit Card for 12 months (then 16.9% APR) plus spending reward points. Next is M&S's 10-month interest-free on new borrowing (15.9% APR after). If you can't fully repay, in the month before the deal ends, shift to a 0% balance transfer deal, and keep doing so until the debt's fully repaid. If that's too much hassle, just go for a low rate card.

LONG-TERM LOW RATES. Barclaycard's Simplicity card at 6.8% APR is a third of most credit cards' standard rates, though you need a £20,000 salary and the credit limit's stingy.

Alternatively, Halifax's Easy Rate card offers 8.9% APR but is "typical-rate", so you may be given a higher rate - it's only for those with good credit scores. Next best is Co-op Platinum card at 9.9% APR.

ALL are variable rate, meaning providers can change the APR, though they're deliberately sold as "long-term low rates" so it's not too likely, but be vigilant.

SEND questions for publication to notw@moneysavingexpert.com

TV money guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.com which is packed with info on how to get more money in your pocket.

This article has 0 comments