Credit card jumping (or rate surfing) is becoming more widespread as people struggle to keep on top of the mountains of debt they have amassed. It's called jumping because people jump from card to card, taking advantage of the best deals on offer.
How Jumping Works
It works like this. Suppose you pay for your new car, DVD recorder or stereo using your old card. After the interest free period of around 56 days (less on some cards) you will have to pay interest on the outstanding balance. This can range from under 8% to well over 23% depending on the card you have. And most of the money you pay back each month will pay off interest rather than reducing the principal.
Credit card jumping offers a solution. Most card companies offer reduced interest rates to new customers. This can be a long term low interest rate or a 0% interest rate for a period of up to 12 months. This means that during this period customers are reducing the principal when they make repayments. This will help to reduce their overall indebtedness.
Shopping For A 0% Credit Card
To get a 0% card, consumers
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