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Stoozing: Make Free Cash from Credit Cards articl...
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MSE Senior Researcher, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.
If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it
The calculator could do with a 'balance transfer fee' box as so many 0% deals have a transfer fee which reduces the amount you earn stoozing by quite a bit.
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1) Correct - easiest to think of this as the amount of stoozed debt you currently have in savings accounts
2) + 3) The How Long is the period over which you want to work out your profits. So, if you have a 0% card for 9 months, you either enter 0% and 9 months, or if you intend toswitch to other 0% cards once the first one runs out, enter however long you intend to keep stoozing for in the "How Long?" box.
4) Correct, enter the interest rate at which the account is advertised - we take of the correct amount of tax for you
MSE Senior Researcher, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.
If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it
Just to verify, if my present amount of stoozed money is say £500, after use of only three months, Savings Account Pre-Tax Interest Rate is as mentioned 6.5% and my Credit Card Interest Rate is 0% for 12 months would that mean I've saved £26. This is just an example by the way.
Or would it be better to wait till the end of the 0% offer to get a real idea of how much I've saved.
Has anyone had a go at this yet? Are you sure that you can transfer money from your egg card to your current account? I tried to apply for the card but it just looked like you could transfer money into your egg current account.....
Has anyone had a go at this yet? Are you sure that you can transfer money from your egg card to your current account? I tried to apply for the card but it just looked like you could transfer money into your egg current account.....
Needs to be Egg Money, but yes you can, I called up today to transfer my +ve balance to my current account, no issues, they said it takes up to 7 working days. 2nd time I've done it this year
Just to verify, if my present amount of stoozed money is say £500, after use of only three months, Savings Account Pre-Tax Interest Rate is as mentioned 6.5% and my Credit Card Interest Rate is 0% for 12 months would that mean I've saved £26. This is just an example by the way.
Or would it be better to wait till the end of the 0% offer to get a real idea of how much I've saved.
Yep, if you are a basic rate tax payer, you are using it correctly
MSE Senior Researcher, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.
If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it
The calculator could do with a 'balance transfer fee' box as so many 0% deals have a transfer fee which reduces the amount you earn stoozing by quite a bit.
Correct. As it stands it is unrealistic. The minimum payments have to come from somewhere and they aren't even mentioned. You can't regard cash in a stoozing account as untouched for the period of the promotional rate whether you actually withdraw any or not to make these payments. Therefore any stoozing calculator has to make allowance for them (even if the user is not being told it has) The easiest way might be to have a drop down of common minimum payments (2%, 3%, 5%) - in fact to allow the user to select any repayment rate above 2%.
But the fee is the bigger of these problems in general and so the option to specify a fee is really a must. (I suggest 'amount' rather than 'percentage' because that makes the user think about fee in more concrete terms and does not require added complication in calculating the fee amount from other information given)
These changes would make the user 'responsible' for considering the need to make payments and the need to cater for any fee. Can't expect 100 percent accuracy but can get a lot closer to the reality by doing these two things.
Users should also be aware that, in practice, you'll never get 9 months interest out of a 9 month deal. Personally, I always knock off a month to allow for start up and pay off delays (just in case you can't get another card and you have to make two transfers (and including a weekend) to repay the card.
This is particularly important now that BT fees have become more prevalent. For example, it's quite possible (on shorter deals) that the first 6 months 'profit' will be used to repay the BT fee, leaving only the remaining 3 months as pure profit for the stoozer. Now if you lose a month of this, as you may well do under the circumstances I've detailed above, that's 33% of your 'true' net profit lost.
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A quick suggestion...
current longest deal is 0% for 13 months.
Go with Yorkshireboy and knock a month off.
At zero%, you should enter the card interest rate as 2% (the balance transfer fee) to reflect the real "stoozed" return.
Simple eh?
I've probably got a fair bit of activity on my credit file at the moment as I'm changing my mortgage and have recently opened a couple of new bank accounts (Nationwide Flex for holiday spends, and Bank of Scotland Hi Interest account - all as recommended by Martin :-) )
In order to avoid another search this month I was wondering if it is entirely necessary to have Egg Money? Can you do the balance transfer to a credit card that issues cheques? I have an exisitng MBNA card that regularly sends me cheques. It has a zero balance, but if I requested a balance transfer from the 0% card to MBNA could I then use the MBNA credit card cheque to transfer the surplus to my ICICI HiSave account (via my current a/c as HiSave is internet only)?
Anyone have any experience with this?
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The calculator could do with a 'balance transfer fee' box as so many 0% deals have a transfer fee which reduces the amount you earn stoozing by quite a bit.
In order to avoid another search this month I was wondering if it is entirely necessary to have Egg Money? Can you do the balance transfer to a credit card that issues cheques? I have an exisitng MBNA card that regularly sends me cheques. It has a zero balance, but if I requested a balance transfer from the 0% card to MBNA could I then use the MBNA credit card cheque to transfer the surplus to my ICICI HiSave account (via my current a/c as HiSave is internet only)?
Anyone have any experience with this?
Using cheques is the same as a cash withdrawal, I believe, hence you would get charged the associated rate - usually higher, with no interest-free period. I wouldn't advise it. Why not wait if you're keen to stooze? You don't really want multiple searches on your bureau record in a short period of time.
Was about to start try and make some money by stoozing....i already have an egg card with no debt onit and use egg money. do i have the correct egg card to start opening up other cards and doing balance transfers to it and then earn interest.....am trying to make about £500 over 12 months from this
Something which hasnt been mentioned is by using banking tricks on banks themselves not only makes money but saves money.
I always use my £3000 (£3600 next April) cash ISA allowance to save tax free.
On only a modest wage and with other bills I used to pay £250 per month standing order into my ISA. By stoozing that means I save that amount each month as the credit card company funds my ISA. Double whammy...for them.. is it all goes in April 5th to gain maximum 12 months interest instead of monthly installments by me.
Im far too mathematically backward to calculate the overall benefits but I do know Im £250 better off a month and I have satisfaction of getting one over on them for the damage they caused my family some years ago.
Immoral is too tame for how I feel about banks.
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Was about to start try and make some money by stoozing....i already have an egg card with no debt onit and use egg money. do i have the correct egg card to start opening up other cards and doing balance transfers to it and then earn interest.....am trying to make about £500 over 12 months from this
If the card is the green Egg Visa then no you don't have the right one.
If it is the "Egg Money card", then yes.
There is "egg money", and "egg money manager" - clearly different things.
I've probably got a fair bit of activity on my credit file at the moment as I'm changing my mortgage and have recently opened a couple of new bank accounts (Nationwide Flex for holiday spends, and Bank of Scotland Hi Interest account - all as recommended by Martin :-) )
In order to avoid another search this month I was wondering if it is entirely necessary to have Egg Money? Can you do the balance transfer to a credit card that issues cheques? I have an exisitng MBNA card that regularly sends me cheques. It has a zero balance, but if I requested a balance transfer from the 0% card to MBNA could I then use the MBNA credit card cheque to transfer the surplus to my ICICI HiSave account (via my current a/c as HiSave is internet only)?
Anyone have any experience with this?
Hi,
I would phone up MBNA or have a look at your last offer letter or statement as I have had offers from time to time about getting a 0% rate on cheques for a certain period. It would have to be as part of an offer as normally they are treated as cash and therefore v high interest, but it is worth try.
I would phone up MBNA or have a look at your last offer letter or statement as I have had offers from time to time about getting a 0% rate on cheques for a certain period. It would have to be as part of an offer as normally they are treated as cash and therefore v high interest, but it is worth try.
.... with MBNA you are even better off. MBNA will transfer money into your current account, meaning you can pay off the other card and put the rest in ICICI.
They are usually quite keen to supply new debt in this way to folks on a 0% basis (but with a BT fee) as I found to my benefit last week. A 2% fee is a small price to pay to reduce the balance on a BTL... it becomes 6.74% net in my case
Last edited by ajaxgeezer; 28-08-2007 at 2:22 PM..
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps. Take care over copyright. Use excerpts and links rather than copying long text. This site asserts copyright on all comments posted on the board.
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.
Stoozing: Make Free Cash from Credit Cards article discussion
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