I Don't Get It 10 April 2014 at 2:41PM in Stoozing: free cash from credit cards 4 replies 2.1K views

matthewfelgate

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? #confused.

MallyGirl

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.

Stooz

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

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

ricky_v

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.