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I Don't Get It

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I don't understand Stoozing. If you build up payments on a Credit Card with a 0% purchase. I understand that money you would have used to pay the credit card off can be in a Interest savings account earning some money. But if you want to Balance transfer, doesn't the 2~3% balance transfer fee wipe out the interest you can earn on that money in a savings account? :s #confused.

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  • MallyGirl
    MallyGirl Posts: 6,698 Senior Ambassador
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    In the old days you did not get charged the balance transfer fee so more money could be made. My mortgage rate was maybe 8% and Egg would allow me to stick £15k straight in my mortgage account (One Account offset type) for a year with no fee. I would pay back the minimum and then pay back the balance just before real interest kicked in having made the equiv of 8% on £15k tax free. Job done.
    Now the fees have kicked in and the mortgage rate is lower so it is less worth it, so the slow stooze (putting everything on 0% purchases card and paying the min) is the way to make a bit.
    I’m a Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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    All views are my own and not the official line of MoneySavingExpert.
  • Stooz
    Stooz Posts: 11 Forumite
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    with a build up on a purchase card, the easiest profit is from paying it off when the deal ends, then move onto a new purchase rate card from a different supplier.
  • MallyGirl
    MallyGirl Posts: 6,698 Senior Ambassador
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    or BT it at that point to a 0% as there are a few low fee long term cards around at the moment - I just got 2 yrs 0% for 1.5% BT fee which is a lot less than my mortgage rate
    I’m a Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • ricky_v
    ricky_v Posts: 330 Forumite
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    Tesco bank had a 0% BT offer for 12 months with no fee last summer, however it was only on the market for a couple of weeks, so no fee BT cards do pop up every now and again.
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