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which is better stoozing or cashback cards? heeeelp

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Hi everyone im new to the forum and i was thinking about applying for credit cards but im not sure whether to use the 0% ones for stoozing against my flexible mortgage or cashback ones.
Also does the money which is paid into your flexible mortgage and then taken out at the end of the 0% period make a difference to the loan amount?
Please help. Thanks :xmassign:

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    scrooge786 wrote:
    Hi everyone im new to the forum and i was thinking about applying for credit cards but im not sure whether to use the 0% ones for stoozing against my flexible mortgage or cashback ones.
    You can make (or rather save) more money by stoozing against your mortgage.
    scrooge786 wrote:
    Also does the money which is paid into your flexible mortgage and then taken out at the end of the 0% period make a difference to the loan amount?
    It makes a difference to the amount of interest you pay, meaning more of your repayments go towards repaying the capital and less on paying the interest. The end result is that your mortgage term can be substantially reduced, and save you £1,000's in interest.
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    If you can, get both - a cashback and a (or several) stoozing cards. But use the stoozers exclusively for stoozing, and your cashback one not for stoozing. Hope this makes sense!
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You can make (or rather save) more money by stoozing against your mortgage.
    Usually this is correct, but generally speaking, this depends on the credit limit and the monthly spending. If credit limit is low, but spending is high you can make more with cashback. For example, with £2000 limit and £1000 spending you can make about £2000*5%=£100 by stoozing or £12000*1%=£120 via cashback.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    grumbler wrote:
    Usually this is correct, but generally speaking, this depends on the credit limit and the monthly spending. If credit limit is low, but spending is high you can make more with cashback. For example, with £2000 limit and £1000 spending you can make about £2000*5%=£100 by stoozing or £12000*1%=£120 via cashback.
    What you say is correct grumbler (as always ;)). However, if my financial situation was such that I could 'afford' to spend (and repay) £1K/month*, ie possibly requiring a salary of around £30-40K, I'd be extremely disappointed to receive only a £2K limit on a card.

    * Unless they were business expenses, and reimbursed monthly by the employer.
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