Can over-stoozing cause any damage?

keepthereceipt

If you stooze to the absolute max, might it cause any long term damage to your credit worthiness? I presume not if you do it properly and pay all payments on time, but I'd appreciate comments.

If not, then are we all doing this to the absolute hilt with every card on offer?

I've currently got just over 50K, but there are still other cards I could apply for.

So far I've only applied in my own name. Should I be applying for my wife in her name and doubling up, assuming she get's the same credit limits?

I'm quite keen to apply for every one going, but just concerned there may be some long term effects.

For the record, I've done Virgin, Abbey, All & Leic, Egg and Mint (in progress) so far.

I'd also be interested how much people have managed to stooze in total so far.

Cheers

Smitty

You need to take your time. Some rough guide lines

Keep number of CCs under 10
Only apply for a couple of new CCs every 6 months
Close down (or at least cool down) Stoozing a good few months before a mortgage application
Pay some balances off, rather than just shifting it to a new deal

Ive heard some people on here with nearly 90k stoozed
Im on 37k, but am on a cooling down period until my remortgage is sorted... its hard work resisting the temptation to apply for new deals though ;D :-/

Margaret_Millne

Also, if you get everycard going now there may not be anything suitable for you to apply for when the 0% on the current cards runs out. Always good to have some in reserve to apply for and move to at the end of existing offers.

keepthereceipt

Keep the number of CC's under 10??

Sounds as if I should apply for a few more!!

I'm using the transfers to reduce a mortgage at 6%, so it seems worth getting as many as possible.

I've applied for them independently, so I presume my wife could also apply for the same set of cards in her own name with no adverse effect? It would be quite something to hit 100K.

I'm just wondering how long it will be before these 0% SBT offers vanish. It may be best to max out while they are around, I can't see how they can continue indefinitely.

deemy2004

As others have said

Pace your applications two or three during any 6 month period is about right.

Close down unused cards, if they don't offer you a deal during the closing process.

westernpromise

Also, if you get everycard going now there may not be anything suitable for you to apply for when the 0% on the current cards runs out. Always good to have some in reserve to apply for and move to at the end of existing offers.

Trouble is, they may not last, so waiting on the assumption that they will is risky.

Also, assuming a finite supply of 0% deals, you make more money if you take them all up at once than you do if you take them up in succession.

Let's say there are 10 deals out there, each lasting 6 months. Let's assume you can get all 10 approved simultaneously, and let's further assume you can get a £10,000 credit limit in each case. Let's ignore tax and monthly repayments for simplicity.

If you apply for the ten available cards in succession, at 6 month intervals and assuming a perfectly-co-ordinated link from one card expiry to the new card starting, you make around £2,184 in interest spread out over 5 years.

If you applied for all 10 simultaneously, then you get to borrow £100,000 for 6 months. You make £2,500 and you make it all in 6 months.

If you stash it for another 4.5 years, at the end of 5 years in total you've made £3,114.

So grabbing all the deals as soon as you can is worth nearly 50% more than doing them in succession.

The calculation includes some other assumptions, of course. Key among these is that the credit limit you'd get if you went for all 10 at once is the same as if you did 10 in succession, cancelling the old ones as you went along. I imagine this is not the case, but I don't know what else to assume. I would think the 10-in-a-row player could get a higher credit limit.

Offsetting this advantage somewhat, the 10-in-a-row player will never get the timing perfectly synchronised, so s/he will not actually get 5 full years of interest. There will be overlaps at best, "underlaps" meaning interest is incurred at worst.

Finally, of course, in the real world the 10-all-at-once player could give it a rest then repeat the process!

Martinslovechild

Let's assume you can get all 10 approved simultaneously, and let's further assume you can get a £10,000 credit limit in each case.

I love your idea of a perfect MSE Credit Card World. It makes me want to apply for 20 cards, or even 30

I could retire at 40 at this rate ;D ;D

deemy2004

Yeh

Why pay into a pension pot, when the 30 stoozed cards will do nicely

zcaprd7

I don't think there are a finite number of deals, when you close an account (if they don't offer anything) you can come at them again later as a 'new' customer.

The main concern is the industry shifting away from 0% deals as a way of marketing - but then I'm sure they'll have to offer some other carrot...

boblevin

Although I've only just learned what its called, it seems that I am an old hand at stoozing as I have been doing this for several years in both my name and my wifes. Recently, due to our credit record having so many "footprints" on it, this lovely source of large amounts of free or cheap money has dried up and shock horror, several are reaching payback. This is not really a major problem but a bit inconvenient. However, I have just learned how unscrupulous the credit card companies can be and rejoice the that I have hit them much harder than they will be able to hit me. Being very keen to minimize their opportunity to charge me full rate interest, I have just recently been paying back as much as possible on the due dates and then making further payments during the month. SHOCK HORROR!!! I find that because I did not clear the balances in full on the due date, THE WHOLE AMOUNT OF THE BALANCE OUTSTANDING ON THE DUE DATE HAS BEEN CHARGED A FULL MONTHS INTEREST!!!. I have now discussed this at length with one credit card company who eventually confirmed that I may as well have just paid the minimum amount due, as I have derived no benefit what so ever from paying the higher amount on the due date or the subsequent amounts. So hear this!!! - IF YOU OWE A LOT AND CAN'T PAY IT ALL BACK BY THE DUE DATE AT THE END OF THE FREE OR CHEAP PERIOD, CHECK WITH THE CARD COMPANY TO FIND OUT IF THERE IS ANY BENEFIT TO YOU IN PAYING MORE THAN THE MINIMUM AMOUNT IN THAT MONTH. IF THERE ISN'T, THEN JUST PAY THE MINIMUM AMOUNT, THEN AT LEAST YOU ARE NOT EFFECTIVELY PAYING INTEREST ON YOUR OWN MONEY THAT MONTH, AND WILL NOT INCUR ADDITIONAL PENALTY CHARGES.

johnllew

I find that because I did not clear the balances in full on the due date, THE WHOLE AMOUNT OF THE BALANCE OUTSTANDING ON THE DUE DATE HAS BEEN CHARGED A FULL MONTHS INTEREST!!!.

If you've been using credit cards for several years (as you say), I'm surprised you were not aware of this. This has been the case with all the credit cards of which I'm aware, for as long as I can remember.