Cashback cards vs. 0% on purchases

Bargain_Rzl

Is there a straightforward formula to work out whether it's better to have a cashback card that's paid off in full each month, or a "slow stooze" on a 0% purchases card on which only the minimum payment is met until the promotional rate expires?

I bet this has been posted before but I couldn't find it...

thumshie

Well, not a straightforward formula or anything, but heres my view:

The restricting factors are:
1. Term of 0%
2. Your average monthly spend
3. Credit limit

A quick calculation based on 1% cashback, and using a stoozepot at 5.7% before basic tax, over 12months with a 3% minimum repayment shows that stoozing would be
twice as profitable. But this requires your credit limit to 12xmontly spend. Yes you'd still be more profitable if you reach your credit limit after 2months, especially if the other 10 months were either on another stooze card or on a cashback

If the intro period is only 6months(or credit limit is only 6xmontly Spend) and you think you can get one card after the other, you'd be about 10% better off(i.e. an equvilant of 1.1% cashabck)