M&S 0% 15 months - Where's the best place to put the stoozed funds?

The_Enforcer

Hi,

I've not stoozed before, but I've been reading about it for a couple of years.I'm intending to apply for the above card and would use it to buy sterling travellers cheques to then convert into cash. I am contemplating where would be the best place to put these funds.

To give some background, the only 'saving' I have been making over the past year is a £500/month overpayment on a 4.89% 5 year fixed mortgage. I opened a 2010/11 ISA, but was unable to subscribe anything to it and my previous years' ISAs have been more than halved through covering house-purchase related expenses.

The obvious answer I suppose is to fund a 2011/12 ISA (e.g. Santander 3.3%, transfering after 12 months to get a better rate for the last couple of months).

An alternative would be to drip feed from a standard savings account into a regular saver (First Direct Regular Saver 8%). Traditionally the reason given for choosing a lower rate ISA ahead of a higher rate (after basic tax) RS is that the former keeps its tax free status, to be compounded in future years' interest. However, here the bulk of the ISA funds would not retain that status as they would have to be withdrawn to pay off the card, unless there is a balance transfer card available in 14 months time that has transfer fee much lower than the prevailing leading saving interest rates. So does this situation lend more weight to the RS option?

As I've been writing this, I've realised that a lot will hinge on the credit limit imposed on the M&S card. The only credit cards I have owned previously are both of my current ones - a Halifax/Mastercard cashback card (for 20 months with a £10.5k limit) and an Amex cashback card (for 15 months with a £3.8k limit), which I have always paid off in full every month.

It may be possible that the card may allow me to borrow enough to maximise both the ISA and RS options, how likely is a £9k limit, in people's experience of this card?

Hope I've explained that clearly enough, any advice much appreciated.

Cheers,
TE

The_Enforcer

The_Enforcer wrote: »

As I've been writing this, I've realised that a lot will hinge on the credit limit imposed on the M&S card.

Rejected. Typical.

originalmiscellany

Do they give you any grounds for rejection? I ask as I got it, but only have ever had 1 credit card to the best of my knowledge...

The_Enforcer

I received notification via an E-Mail, which doesn't go into detail, but says a letter of explanation will be sent in the post. I have e-mailed back to ask which credit reference agency they have used so I can check for errors, as there is no point re-applying or applying for anything else until I have eliminated, or at least understood, the cause of the problem.

There is also an 0847 number, but I have discovered a freephone number for MS Money via saynoto0870.com, so will see if they can divulge any reasons over the phone tomorrow.

Had another go on the MSE online credit checker - comes up 'good', as it did last time I used it a couple of years ago.

If I had to hazard a guess, I'd say it's to do with opening 2 current accounts this year, one being a FD 1st joint account in January and the other a Halifax Reward account last week. Got 5 in total, all in credit, all in use. The other 3 have been open for 18 years, 9 years and 18 months. Otherwise, It's either moving house a year ago, (previous residence for 7 years) or I've made some elementary error on their form like a typo. The only error I know I've made is that I noticed by chance today that my Amex limit is now up to £4.7k, not sure when that changed, I put £3.8k, but I'd be surprised if that made a difference.

sar050680

I've read a few MSE'ers have been declined only to re-apply and be approved, might be worth a try. Good luck.

The_Enforcer

Called the number, spoke to Theresa, really helpful, explained they used Experian for a credit check and I had just missed out on their scoring system by a few points: combination of moving house, relatively new mortgage and opening some current accounts recently. However, she was happy to overturn the decision, so approval paperwork is on its way!

0800 0282824 gets you through to their ISA/savings department, they will put you through to their underwriting department.

sar050680

Nice one Enforcer. I sent my paperwork back to them just over a week ago, I've also read they don't rush so be patient.

COOLTRIKERCHICK

I have applied and got passed for an M&S CC..

I have 3 lloyds tsb accounts, and even though they are reducing their rates in june this where i think i might put the money first of all,

then open ( if accepted) a first direct account and transfer one of my lloyds account:D, then take advantage of their 8% monthly savers account..( they are offering £100 if you transfer your bank account to them;))

so basically put the travellers cheques into lloyds account... then do a DD to First Direct account for £1500... and a DD of £350 into the savers account... then Do a reverse DD back to lloyds tsb account of £1150 ..

and the same every month....

this will satisfy the conditions of both lloyds and First direct accounts with the min amount to be depssited each month...

then after the 12 months of the Savers account.... close the accounts and put money back into lloyds, or any other better easy access interst account, and then pay off in full M&S credit card, and close it....

minibbb

Dont expect M&S to send you your card anytime soon, its been over three weeks since I applied, I sent the credit agreement straight back two weeks ago and nothing since. I called them and was told that the card was on its way. No card and no pin number yet....wonder if it'll stretch to the full month!!

I was however told my credit limit on the phone. £4,000 so not too bad!

COOLTRIKERCHICK

minibbb wrote: »

Dont expect M&S to send you your card anytime soon, its been over three weeks since I applied, I sent the credit agreement straight back two weeks ago and nothing since. I called them and was told that the card was on its way. No card and no pin number yet....wonder if it'll stretch to the full month!!

I was however told my credit limit on the phone. £4,000 so not too bad!

it might be something to do with 4 bank holidays in 2 weeks...

The_Enforcer

COOLTRIKERCHICK wrote: »

so basically put the travellers cheques into lloyds account... then do a DD to First Direct account for £1500... and a DD of £350 into the savers account... then Do a reverse DD back to lloyds tsb account of £1150 ..and the same every month....then after the 12 months of the Savers account.... close the accounts and put money back into lloyds, or any other better easy access interst account, and then pay off in full M&S credit card, and close it....

I already have the FD current account, it was our first choice for a joint account, already got the £100 bonus, wages cover the required payments. Have you already subscribed to an ISA for 2011/12?