Is Rate Tarting Dead? Discussion

Former_MSE_Dan

From Martin

Will rate tarting end?

This question has been asked many times. The headlines scream out about rate tarting ending. My answer "what a pile of pants!".

We're a long way from the death knell. For a brand new full article explaining why read Is rate tarting dead? article.

daveboy

Here's me with my "only one person with this opinion" opinion.

Rate tarting isn't quite dead, but very soon will be.

This site has done wonders for a large number of people, but I actually think it is this site being so successful that has ultimately meant those good old 0% offers won't exist in the way they have done.

The charge for balance transfers that a lot of cards have brought in is evidence that the door is being closed on us - there will always be a way to get back at them but not in the way so many have been doing through stoozing.

I know before anyone else replies that I'm the only one thinking that in trying to get one over on card companies, Martin has been far too successful.

Being so successful can sometimes bring about a downfall, and we're seeing that now.

lipidicman

Not so successful that the card companies are losing money overall. They whinge about what it costs them without mentioning what it gains them (ie people who miss the dates/cant be bothered). This is like saying programming WindowsXP costs bill gates x billion without backing it up with how much he sells it for, and he certainly isnt losing money. It is a nonsense. Capital One's report has been exposed for the biased piece of advertising that it is!

Reaper

I'm not worried. I've heard that around a third of tarts fail to switch at the end of the 0% period. That makes it a worthwhile loss leader.

However I do feel the BT fees are dishonest. I don't see how a company can advertise "0% for Balance Transfer" in big letters when there is a 2% charge. That ought to be included in the APR figure. Time the FSA made sure all charges are included in the headline rate. That would stop BT fees in an instant.

surfcat

Well I'm fairly new to this card slutting business and it still seems to be alive...

daveboy

I'm sure others have used it before but I want to start a campaign to abolish the term stoozing and replace it with "card slutting".

After all, it is 'turning tricks' on card companies.

I like your use of words, surfcat.

MSE_Martin

Just to note. I think those who saw this directly from the Chat Forum may have missed that this is a discussion link from the specific new article Is rate tarting dead? rather than a general discussion

crunchy_with_ketchup

Surely these things are cyclical? The market gets so saturated with everyone trying the same technique to grab custom, so some start backing away from the best offers. New market entrants still neede to put in good offers, do so, gain market share from those who have withdrawn, who then have to start tempting them back.... I guess those who charge BT fees now might stop doing so when the feel they need to claw back market share, while others will introduce them to stop tarts. All part of lifes merry go round.

In the meantime, most people are utterly confused, allowing the card companies to rip them off through hidden charges.

M_Thomson

MSE_Dan wrote:

From Martin

Will rate tarting end?

This question has been asked many times. The headlines scream out about rate tarting ending. My answer "what a pile of pants!".

We're a long way from the death knell. For a brand new full article explaining why read Is rate tarting dead? article.

I want to say thanks very much to MSE Dan for showing sense and not using the worlds most ridiculous term "Stoozing" ! It is sad to see that on this website the word is becoming as common place as it is on fool.co.uk

realaledrinker

May be he didn't use the term because Rate Tarting & Stoozing are two very different things. The first is shifting an existing debt around to avoid paying interest. The second is making money by manufacturing a credit card debt & shifting it into a savings account for the duration. Your comparison should be: SBT and stoozing

deemy2004

I don't see stoozing dieing even with the 2% balance transfer fees.

If anything the 2% fee represents the maturing of the 0% saga into somethign more sustainable and longer terms.

Which means likely fewer more professional stoozers in the long-term who carry far more debt to generate the same return as they did with 0%.

Its all down to timing of which cards to get when... with the emphasis now more on the 0% spending cards.

I suppose I can stil survive another 5 months or so without taking a hit froma 2% BT charge card, which would still give me maybe a 2% profit.