What makes more cash - 0% purchase or cashback?

mccartrey

???

Hi All,

I have cards on 0% making money for me. but I need a card to buy things with.

Which will make more money for me (I can't quite figure out the maths)

1.) A cashback card of say 0.8% (to keep the maths simple)
or
2.) A 0% purchase card like the current Sainsburys one.

p.s. I always pay off my cards in full each month. also if I got the 0% purchase card I could save the money in my wifes account at 5.5% interest (she is a non tax payer)

Can anyone number crunch these and tell me which one works out better please?

regards,

McCartrey

Robert_Sterling_3

What is your credit limit?
How much do you spend on a Credit Card per month?

If you prefer a quick answer:-
Go for 0% on purchases
Put cash into wife's 5.5% account.

Look at what MINT has to offer as it includes 0% BT 0% purchases and 0.5% Cash Back. Tasty or what?

Unbelievable_2

Yep - go 0%.

If you spend £500 per month for 12 months you'd get £48 cash back. If it's at 0%, you pay the min payment and bung the rest in a savings account you'll make over £100 (it's about £137 I think).

Robert_Sterling_3

That is believable Unbelievable.

mccartrey

Thank you both,

I did the maths actually and decided that 0% purchase was best too but Martin only seems to advocate this for people that don't pay off the card in full each month. Any idea why this should be? ???

I purchase about £1000 of stuff on cards each month and pay off in full.
Credit limit on current card is £8000 but I've no idea how much Sainsburys might give me.

You really are both unbelievable (is that a tired joke?),

regards,

McCartrey
;D 8) ::)

jo_b_2

If you go for the Sainsbury's card you will also get Nectar points as well as the 0% offer, so effectively you will also get a form of 'cashback' as well.

Robert_Sterling_3

If you let your card run up to its Credit Limit whilst paying only the minimum per month then you could end up with up to £8000 in your wife's account at 5.5%.
By that time interest woul be accruing at the rate of £440 per annum or £36.66 per month.
If you aquired a penchant for Stoozing and performed balance transfers at the appropriate time you could become "one of us".

Clariman

???

I have cards on 0% making money for me. but I need a card to buy things with.

Which will make more money for me (I can't quite figure out the maths)

1.) A cashback card of say 0.8% (to keep the maths simple)
or
2.) A 0% purchase card like the current Sainsburys one.

p.s. I always pay off my cards in full each month.

Looking at the specifics then a 0% card will make you more (depending on how much you spend and how quickly).

However, there are few cards around that offer 0% on purchases so it may not be a viable long term idea. What works for me is to have one set of cards for Stoozing (currently totalling £85K) and another set of cards for purchases which provide cashback on my spending. My main cashback card is Amex platinum (up to 2% cashback) but I have a Mastercard as backup.

Clariman

oscarhugo

Yeah -- I was going to say - why not buy with a cashback card & then BT the monthly debt to a 0% card, such as EGG on which you can do BTs during your whole introductory period [some only let you do it "within 30 days of account opening" etc.]

I'm having trouble getting many more 0% cards now - since I've boogered my credit score it would seem - but I did get the HSBC Gold Card & have BTd my amount spent on my Amex Platinum last month.

MSE_Martin

Thank you both,
I did the maths actually and decided that 0% purchase was best too but Martin only seems to advocate this for people that don't pay off the card in full each month. Any idea why this should be?

Hiya, what you need to understand is that article is primarily written for people as 'the best lend for spend'. And as such if you don't need to borrow, the majority of non-stoozers are better with cashback.

You are quite right with the maths and in fact this is something i have noted in previous Money Tips when talking about this offer. However do remeber if you want to make free cash from credit cards this is not the best method.

The best method is in the 'REVENGE free cash' article. That does link to an old free cash article which advocates the method you mention.

My view when writing is that this is an article for the people really looking for the basics and that the more sophisticated credit cards users would gravitate to the Free Cash article and take it from there.

martin ;D

deemy2004

???

Hi All,

I have cards on 0% making money for me. but I need a card to buy things with.


McCartrey

BOTH !

Sainsburies - 0.25% on purchases and 12 months free