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Is using 0% Overdraft into cash isa stoozing?
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Financial_Savvy
Posts: 385 Forumite
Hi,
It is still called stoozing when you take the 0% overdraft (12 months I think) that A+L offer you when you get a new current account and then put the cash into a mini cash isa (also A+L)???
I am familar with the practice with stoozing from a CC (I am doing this at present with HSBC) but never practiced it with a over draft.
Apologies if this post doesn't belong here I wasn't sure where it should go.
Keep up the good work fellow money savers
It is still called stoozing when you take the 0% overdraft (12 months I think) that A+L offer you when you get a new current account and then put the cash into a mini cash isa (also A+L)???
I am familar with the practice with stoozing from a CC (I am doing this at present with HSBC) but never practiced it with a over draft.
Apologies if this post doesn't belong here I wasn't sure where it should go.
Keep up the good work fellow money savers
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Comments
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http://www.stoozing.com/stooz_intro.htm :
So, strictly speaking, making money from 0% overdraft is not stoozing. Does this make any difference to you?Stoozing is a way of making money by exploiting credit cards which have an introductory period during which no interest is charged.0 -
Agree with grumbler, what does it matter what its called? Remember though that stoozing or whatever is not best to do with an ISA as you will be withdrawing the pot to pay back CC/OD etc, and then you've used up your yearly ISA allowance0
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Financial_Savvy wrote:Hi,
It is still called stoozing when you take the 0% overdraft (12 months I think) that A+L offer you when you get a new current account and then put the cash into a mini cash isa (also A+L)???
I am familar with the practice with stoozing from a CC (I am doing this at present with HSBC) but never practiced it with a over draft.
Apologies if this post doesn't belong here I wasn't sure where it should go.
Keep up the good work fellow money savers
I am using this odraft too, but its in A+L savings issue 2 . Am I risking lowering my credit score doing this? . I Am going to be looking for a new bigger mortgage soon?0 -
In a word, yes!pennies2pounds wrote:Am I risking lowering my credit score doing this?
Any available, and especially used, credit will impact on your credit rating. To what degree will depend on your other financial circumstances.0 -
So do I need to put that od back in the A+L account or is it too late?0
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Except (IIRC) that overdrafts don't appear on credit reference agency files, so how do other lenders take them into account when assessing individuals unless they specifically ask you?YorkshireBoy wrote:In a word, yes!
Any available, and especially used, credit will impact on your credit rating. To what degree will depend on your other financial circumstances......under construction.... COVID is a [discontinued] scam0 -
Nobody here can answer that question for you. You'll have to decide if it's worth the risk based on your own financial circumstances.pennies2pounds wrote:So do I need to put that od back in the A+L account or is it too late?
A word of warning though, it could take 1-3 months for the lender to update the CRA's once you've repaid it.
Re the mortgage, are you aware you can ask for 'quotation searches' as opposed to 'credit searches' in your initial talks with lenders? Obviously you will have to undergo a full 'credit search' when you've selected the deal/lender you're going with, but the benefit to you is that these initial 'quotation searches' are not visible to other lenders searching your file (according to Experian anyway).0 -
Some don't appear, some do apper ... My Cahoot, Nationwide, A&L curent accounts are listed on my credit files - all with credit limits and £0 balances. I think negative (debit) balances will appear too if I use overdrafts.Milarky wrote:Except (IIRC) that overdrafts don't appear on credit reference agency files, so how do other lenders take them into account when assessing individuals unless they specifically ask you?0 -
You are right I have just checked my credit centre with Experian and the overdraft is on there, but I think I may be ok because I have lots of green zeros on my file ( no late payments ) etc . I am a bit reluctant to waste the £4.99 on a credit score if all these zeros means im ok - any ideas chaps0
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Milarky,
My recently opened A&L current account is showing on my CRA file, even though I don't have an overdraft with it (it still shows £0). Having said that, I don't think my recently opened Barclays current account shows up yet - again I don't have an overdraft facility with that one either.
My long standing (over 25 years and with a £5K+ overdraft) current account with Yorkshire Bank does not show up on my file.
I'm sure I've read somewhere that, as long as the account is run well and was opened prior to 1998, then they can't report it without you agreeing that they can.
There's lots of information on the reporting of current accounts to the CRA's in Experian's "Your credit report explained" booklet, which they send you with your £2 statutory reports. You can also view the booklet online, or download it from the Experian website at http://www.experian.co.uk/consumer/index.html?order.0
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