which is better stoozing or cashback cards? heeeelp

scrooge786

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:

YorkshireBoy

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

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

YorkshireBoy wrote:

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

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.