Is it wise to stooze?

themoffster

Being a newbie to this game, I have read the forum and it does seem like a good idea. However there are a coupleof points that jumped out at me:

* Can you just balance transfer 100% of your credit card limit to a savings account?
* Surely you need a lot of cards to get any large amounts
* I'm assuming that as soon as the 0% runs out you cancel the card and start the whole process all over again, but doesn't this flag up with the card companies that you are a 'hit and runner'?
* Also, doesn't applying for and getting rid of umpteen credit cards a year hit your credit score badly?

stevemcol

It doesn't seem to do any long term damage but my view is you've missed the boat really. Virtually all cards now have BT fees. To make it worthwhile, you need a very long 0% period and preferably an offset mortgage.
And yes, I think some CC companies now have some smart software capable of picking up Stoozing patterns. I've had some unexpected refusals recently when my credit score has been quite good.

ONly my opinion. You may get equally valid opposite views.

sicker

My opinion too steve. Balance transfer fees negate the returns that can now be made. I am in the process of winding up.

John

ThankYouAndEnjoy!

Credit card stoozing is now only of use really on 0% purchases. You can purchase your complete credit limit full of goods (everyday items preferably - toiletries and food 4 example) and not have to worry about paying it off 4 x number of months.

If you stick the money you would have spent on purchaing these into a high interest investment (5.8% ISA 4 example) you will have made a clear 5.8% profit on your money (no fees and no interest on credit card). Obviously, making sure you pay the full balance off when 0% comes to an end.

stevemcol

I agree with TYAE except that there's only so much money you can spend!

YorkshireBoy

I still have a £41K stooz pot (and could be £57K if I can persuade LTSB to grant me another repeat offer), but I fall to £20K from August until the end of the year.

I'm recycling my M&S minimum payments (following maxing the card out with the travellers cheque loophole), and Halifax surprisingly gave me a £5K slow-stooz card with my recent current account application, so I'm in the fortunate position of actually growing my stooz pot at the moment - to the tune of nearly £1K per month.

Fortunately, due to my 6% offset mortgage, I can still make many of the 2% BT fee offers work for me. However, because I'm 100% offset I have to be careful to factor in savings tax for any surplus funds.

(fast) Stoozing has rolled over, but it hasn't quite taken it's last breath yet.

ThankYouAndEnjoy!

lol, yeah i guess so....

also depends on the 0% offer .. some are only 3 months, some 10 months ... the longer the better....

We are buying nappies and clothes for a newborn (gone thru 80 nappies in 1 week) ;allows us to spread the cost. I guess every little helps .....

emma396

i seem to be missing the boat on lots of things. i've only just started stoozing, i've looked at balance transfers, and the 2% is quite off putting. never mind. if i offer to pay for my family's purchases on my card in return for cash, i can still make money

Shiggaddi

stevemcol wrote: »

I agree with TYAE except that there's only so much money you can spend!

Yes, stoozing has almost had it's day, and my Ulster card is my last stoozing card left with no fees and 0%, and that will end in July. I think the only card left is the ICICI 3 months at 0% for BTs with no fee, and the Norwich & Peterborough card which I have paid off last month.

The only route to go down now, is whether you're prepared to pay the 2 or 3% balance transfer fees, which takes a big chunk out of the stoozing profits.

Slow stoozing is viable if you have a high monthly spend, or spend alot of money on behalf of others, to which you get reimbursed, or are about to make a large purchase to which a credit card will be accepted.

YorkshireBoy

Shiggaddi wrote: »

I think the only card left is the ICICI 3 months at 0% for BTs with no fee, and the Norwich & Peterborough card which I have paid off last month.

Hi Shiggaddi,

The Britannia card appears to be fee-free (but 5 months only), according to the T&C's and a post on the stoozing website. However, it is only open to existing Britannia members (but I'm sure it's not difficult to become one!), and you'd probably have to wait until your N&P card had been marked as settled (both run by Halifax).

Shiggaddi

YorkshireBoy wrote: »

Hi Shiggaddi,

The Britannia card appears to be fee-free (but 5 months only), according to the T&C's and a post on the stoozing website. However, it is only open to existing Britannia members (but I'm sure it's not difficult to become one!), and you'd probably have to wait until your N&P card had been marked as settled (both run by Halifax).

I've paid off the Halifax but when I went to close, I was transferred to someone who offered uncompetitive deals, so I then asked to go ahead with the closure, and was then persuaded to keep the card open just in case there's more deals next month. I then said that I don't want to keep phoning up and seeing the same deals, without cancelling, so next month I'll check on the deals and then commit to cancelling, so I agreed to have the card open a little longer with a zero balance.

Good tactics, as having the card open longer bans me from taking advantage of any other Halifax card deals, and indeed stops me opening another account with N&P, as I might be able to open another account 6 months later if they're still on no fees.