| Credit card jumping (or rate surfing) is becoming more | | | | runs out. This leaves plenty of time to get the new |
| widespread as people struggle to keep on top of the | | | | credit card and transfer any balances on to it to take |
| mountains of debt they have amassed. It's called credit | | | | advantage of the new offer. Consumers can do this |
| card jumping because people jump from credit card to | | | | any number of times.What About My Credit |
| credit card, taking advantage of the best deals on | | | | Rating?The key to keeping a good credit rating is to |
| offer.How Credit Card Jumping WorksIt works like this. | | | | always pay at least the minimum amount that is listed |
| Suppose you pay for your new car, DVD recorder or | | | | on the statement. This must also be paid on time and |
| stereo using your old credit card. After the interest | | | | consumers should never exceed their credit limit. It is |
| free period of around 56 days (less on some cards) | | | | also important to keep the old cards even after the |
| you will have to pay interest on the outstanding | | | | balance has moved to another card. Old credit cards |
| balance. This can range from under 8% to well over | | | | show people's credit history and improve their credit |
| 23% depending on the credit card you have. And most | | | | rating.How Companies Protect Against Credit Card |
| of the money you pay back each month will pay off | | | | JumpersWhen 0% interest offers first appeared, credit |
| interest rather than reducing the principal.Credit card | | | | card companies did not realise the implications. They |
| jumping offers a solution. Most credit card companies | | | | lost hundreds of thousands of pounds of potential |
| offer reduced interest rates to new customers. This | | | | interest. Now there's a strategy in place to make credit |
| can be a long term low interest rate or a 0% interest | | | | card jumping less attractive. This is the balance |
| rate for a period of up to 12 months. This means that | | | | transfer fee.The balance transfer fee is a new charge |
| during this period credit card customers are reducing | | | | imposed by credit card companies whenever |
| the principal when they make repayments. This will | | | | consumers transfer a balance to a new credit card. |
| help to reduce their overall indebtedness.Shopping For | | | | The rate for this is around 2%. This means that credit |
| A 0% Credit CardTo get a 0% credit card, consumers | | | | card companies get their money up front. There are |
| just need to shop around. They can visit one of the | | | | still some cards that do not charge a balance transfer |
| many comparison websites to find the best deal. Many | | | | fee, so it's worth shopping around while they |
| credit card companies also offer other incentives such | | | | last.Joseph Kenny writes for the Card Guide, a site |
| as money-off vouchers, cash back rewards and | | | | where visitors can compare credit cards. Browse |
| discounted insurance.The 'jumping' part comes when | | | | credit cards by category including 0% balance |
| the 0% offer runs out. Canny consumers will apply for | | | | transfers. |
| a new credit card about a month before the old offer | | | | |