Have I got this right?

crstein

Hi,

This is my first post here, but I've been reading the site for quite a while.

I wanted to check a thought with you here to see if I've got this right. There are credit cards that offer 0% on purchases and there are high interest rate paying regular saver accounts. If one were to take a credit card with 0% on purchases and then regularly transfer the money into the regular savers account to take advantage of the rates and then pay the cc balance off in full at the end of the 0% offer, couldn't someone make some easy cash?

I'm sure this has been asked before and my instincts are telling me not to try this because the financial industry is a lot smarter than I am, but I thought it could be interesting.

Thanks for the input.

nzseries1

Exactly, this is called stoozing and there is a whole website on it.

www.stoozing.com

What you are talking about here is "slow stoozing".

B.E.N

But, remember...

Golden Rule = NEVER withdraw cash from a credit card!

You'll get charged a high interest rate, most cards are 0% on purchases, not "cash advances".

Make sure you read that stoozing site mentioned above, cos it's easy to get your fingers burnt.

Good Luck
Ben

nzseries1

B.E.N is exactly right, but he also missed saying that if you make a cash advance, you won't be able to pay it off until all the 0% debt is paid off first, meaning even more interest to pay!

crstein

Thank you for the link and the advice. I'm good at saving, but in reality my bank know-how is basic. I'm going to keep reading and find out some more about this. It just seems like a fairly straight forward way of making some money.

Thanks again.

alchemistkevin

Make sure you get your sums right before you start - a single mistake will put you in a loss and wonder why these schemes are still on? Coz they're still making money from people and the next person to give away their money to these companies might be you.

oldfella

the rules are:
dont exceed your credit limit
pay the minimum payment each month by direct debit
ask the CC when the 0% finishes
pay off the total outstanding amount a week before the end of the 0%

maypole

I think also, that some credit card companies charge you a fee to do the transfer so watch out for that.

jerrymind

I've had ridiculous encounters with some credit card companies and their hidden charges. I always advice people to do their research and I totally agree with oldfella, ask questions on when your amount interest will finish

nzseries1

maypole wrote: »

I think also, that some credit card companies charge you a fee to do the transfer so watch out for that.

In this case, I think the OP was referring to spending on a 0% for purchases card, and saving the money they would have spent anyway, so a fee should not apply here, as there is no "transfer".