Stoozing: Free Cash from Credit Cards - Is it appropriate to promote in 2011 ?

Wyndham

I'm not 100% sure, but you may find that travellers cheques are treated like cash, and the 0% will only apply to purchases, not cash withdrawals. I think you should double check that first or you may find you are stung for interest quite heavily.

The_Enforcer

This is where I got my information from:

http://www.stoozing.com/forum/YaBB.pl?num=1159043738/all

This implies that the loophole has been running since at least 2006, but I'll have a look at the details for the latest card on the M&S website to make sure the situation hasn't changed.

Taken from latest terms and conditions:

‘Cash Advance(s)’: any cash withdrawal, purchase of travellers’
cheques or foreign currency, (other than from Marks and Spencer plc),
Cheque transaction, money order or electronic money transfer
(excluding Balance Transfers), any payment by Direct Debit and any
betting and gambling transaction.

http://money.marksandspencer.com/pdf/CCTC.pdf

Seems like confirmation that traveller's cheques purchased from M&S on M&S card do not count as a cash advance, thereby avoiding the effective/simple rate 23.9%/21.660%, which you warned of.

The 1% charge is imposed on sterling travellers cheques by M&S Money -

Banks and bureaux de change may charge a small commission when you cash your travellers cheques. The amount is set by the bank or bureau, and varies from country to country. We offer 0% commission on foreign travellers cheques and only charge 1% on sterling travellers cheques.

I will have to investigate whether there are any bank charges for paying sterling travellers cheques into my various current accounts.

CHAPA

Do we get 1% back in vouchers or is it that they do not give vouchers for using M&S money when you buy TC?

thanks.
Pavan

The_Enforcer

The only reference to vouchers in the terms and conditions is that you can't use them for repayments. I'm pretty certain I read on one of the threads about stoozing on this card, possibly on the linked thread I posted, that travellers cheques do not qualify for points, which can be converted into vouchers.

I think I also saw someone post that they could avoid the 1%, because they had a 'dollar' current account and so could stooze with dollar travellers cheques, as the 1% charge only applies to sterling, not foreign travellers cheques. I've no idea how easy it is for a UK citizen to obtain a current account in foreign currency.

I've applied for the card now anyway.

YorkshireBoy

The_Enforcer wrote: »

I will have to investigate whether there are any bank charges for paying sterling travellers cheques into my various current accounts.

FYI I've used LTSB 3 times on 2 different Sterling TC stoozes, and Nationwide once. Never paid a fee, and LTSB even cleared £4.5K worth for cash immediately once! A&L told me they would accept them fee-free but I never used them. Do check again now because my experience was pre-Santander takeover.

The_Enforcer

I needed to go into my local Halifax branch earlier this morning to pay £100 into my current account, so I asked them and it appears that they accept them unlimited and without a fee, although I forgot to mention that they were from M&S and they did say "I could pay them back in", which may mean that they were under the assumption that the TCs had come from Halifax originally.

I went to Natwest afterwards, whom I also have a current account with and was explicit in explaining they were from M&S and they said there was no limit or charge, just had to remember my passport.

I do have an A&L current account and there is a Santander branch in town, but this would be my last choice anyway, as I may close this current account soon.

My main account is presently with First Direct, so I was hoping to ask at HSBC, however, they weren't open until after I needed to be back here.

lisyloo

I'm currently stoozing £130K from my mortgage at 1%.
I'm getting 3% in cash ISAs, about 6% in NSI certificates and about 10% in S&S ISAs.
I am aware of the risks with that.

I agree that it's become less worthwhile for the mainstream.

the_alchemist

I'm new to stoozing and don't think I'll continue unless another fee-free 0%-on-transfers card comes out - I'm reaching the end of the 0% period on my current one (the Santander Zero).

Although it would be slightly more lucrative to spend on 0% cards and save my salary, it's simpler just to use my cashback card, so I'm going to do that unless things change.

The_Enforcer

The_Enforcer wrote: »

I've applied for the card now anyway.

Rejected. Typical.

EDIT - Phoned them - marginally short of points, decision overturned!