Putting credit card money into bank account.

Fen1

OK, stupid question for those in the know, and I don't know what this system is called, so I've gone round and round in circles on the board trying to find it.

I read an article on here somewhere that you can borrow money from your credit card and then put that money into your bank account to gain interest. Please please tell me how this works.

I'm a credit card numpty, so all help appreciated.

innovate

Stoozing.

You will find it somewhere on the MSE Forum, and on stoozing.com.

Not commenting on whether I think it's sensible to stooze these days.

unhealthyman

I think you mean stoozing. There is an article on it on this site:

Bear in mind that if you don't know what you are doing you stand at risk of it costing a lot more money than you'd make.

The absolute basic gist of it is: you get money at 0% interest on a NEW PURCHASE credit card (so 0% for 12 months etc type cards) and you put that into a high interest savings account. At the end of the 12 month (or whatever) interest free period, you transfer the debt to a new 0% ON BALANCE TRANSFERS card. You keep hopping from card to card every time the offer runs out. If you get the dates wrong or time it wrong you will have to pay extortionate interest on the credit card effectively wiping out any savings made over the year.

If you aren't confident with what you are doing and don't do the research THEN DON'T DO THIS! Especially at the moment, where getting credit is harder, you may find it difficult to even get off the ground. But if you have a good credit card and read up on it all, then give it a try if you want.

apt

I agree with unhealthyman. With falling interest rates after paying the balance transfer fee the financial return will be very low. And if you miss a payment or can't pay everything on time when the 0% ends it will be very expensive. Also mass and serial stoozing will damage your credit rating, something which everyone should be looking after as carefully as possible in the current climate. Stoozing is a more attractive proposition if you have an offset mortgage.

Calchas

In order to decide whether stoozing is right for you Fen1 may I suggest follow this link:

http://www.stoozing.com/

Fen1

thanks for all the advice. will mug up on things now.