Spending cashback and BT stooz

Ok, before I start here's a warning:
If you are new to stoozing or a non-mathematician then the rule is you never spend on a card that you have transfered a balance to for stoozing.

But I can't resist the idea of squeezing every last penny out of a card!
Just applied for a Santander 123 credit card for stoozing. Transfered 95% of my limit to pay off another card (the garage kindly let me pay for a car on credit card with no fees - so got cashback on the spending and a nice balance to transfer at 0% and no fee).

Obviously, I know the rule as well as anyone, and I now put this card in the drawer and don't spend on it.
But...
They're going to give me 3% cashback on transport spends.
I won't be paying the card off in full every month, so I won't get the interest free period on spending. But if I make a payment to the card within a few days of buying a train ticket then surely I won't get charged more than 3% interest on that money, will I? Arguably there will be residual interest on interest that will build up over the 23 months of the stooz, but nothing that will come close to the 3% cashback they're giving me?

[Technically, this 3% cashback should be viewed as 2% cashback, because I'd get 1% on my Barclaycard anyway. But even so I don't think it will cost me 2% in interest.]

Any thoughts?
«1

Replies

  • shortcrustshortcrust Forumite
    2.7K Posts
    Eighth Anniversary 1,000 Posts Combo Breaker Newshound!
    I think a spend has to appear on your statement before you can pay it off. So if you spend £50 on fuel you will only be able to clear that £50 after your next statement date. Payments before then will just reduce the 0% balance.
  • JimmyTheWigJimmyTheWig Forumite
    12.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Hmmm, that's a shame if it is the case. Means it would be only worth doing in the week or two before the statement date.

    Do others agree?
  • shortcrustshortcrust Forumite
    2.7K Posts
    Eighth Anniversary 1,000 Posts Combo Breaker Newshound!
    Hmmm, that's a shame if it is the case. Means it would be only worth doing in the week or two before the statement date.

    Do others agree?

    I'm just thinking I might have got this a bit muddled. Perhaps a spend just has to show as a recorded transaction rather than a statemented one. So you'd just have to wait for it to show on online banking, for example.

    Hopefully someone can help my confusion!
  • VortigernVortigern Forumite
    3.1K Posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Forumite
    Santander's current offer is 23 months interest free on both purchases and balance transfers.

    http://www.santander.co.uk/uk/credit-cards/123-credit-card/

    So, if I'm not mistaken, you could max the card on purchases and BTs, then as soon as each months minimum payment has cleared, you could make further purchases to keep the card near the max.

    You can set a text alert to advise when you're getting close to your limit and once you've reached your chosen margin, you'll get a text after each purchase advising how much you have left to spend.
  • JimmyTheWigJimmyTheWig Forumite
    12.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Vortigern wrote: »
    Santander's current offer is 23 months interest free on both purchases and balance transfers.
    D'oh!
    #alwaysreadthetermsandconditions
  • edited 3 March 2015 at 5:38PM
    YorkshireBoyYorkshireBoy Forumite
    31.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    edited 3 March 2015 at 5:38PM
    I've been doing what you're proposing with this card for 2-3 months now.

    As I didn't have a balance elsewhere large enough to max the card out I simply muled it via MBNA.

    If there's a better deal around I've yet to find it!

    It does feel a little uncomfortable sometimes when sailing so close to the wind though.
  • JimmyTheWigJimmyTheWig Forumite
    12.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I've been doing what you're proposing with this card for 2-3 months now.
    I was hoping you'd reply when I wrote the OP. Though the whole thing is somewhat irrelevant now Vortigern has pointed out the whole thing is 0%.
    As I didn't have a balance elsewhere large enough to max the card out
    Just to be more smug, the deal we got on the car was cracking. The cashback and instant stooz pot was just the icing on the cake!
    I simply muled it via MBNA.
    At 4%?
    Did you do the SBT from MBNA first?
    It does feel a little uncomfortable sometimes when sailing so close to the wind though.
    Can you remember that we used to do this before the days of universal online banking. These days it's easy in comparison...


    I'd forgotten how addictive stoozing is. I only started back up again in August. The 123 is my 4th concurrent card.
    They're giving away money like they were before the credit crunch. I wonder where it will all end...
  • YorkshireBoyYorkshireBoy Forumite
    31.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    My MBNA card still has a 2% fee for SBTs.

    However, I didn't pay! I simply created a positive balance and asked them to transfer it to my current account...just as I did with another free BT I got from Halifax a few days later.
  • JimmyTheWigJimmyTheWig Forumite
    12.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    My MBNA card still has a 2% fee for SBTs.
    Nice. Could come in handy one day.
    However, I didn't pay! I simply created a positive balance and asked them to transfer it to my current account...just as I did with another free BT I got from Halifax a few days later.
    What?
    What!?
    Isn't that exactly what we've been telling people for years that they shouldn't do?
  • edited 3 March 2015 at 6:23PM
    YorkshireBoyYorkshireBoy Forumite
    31.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    edited 3 March 2015 at 6:23PM
    Nice. Could come in handy one day.
    Its hugely frustrating to have a card with a 2% fee and a near £25K limit and not be able to do anything with it!
    What?
    What!?
    Isn't that exactly what we've been telling people for years that they shouldn't do?
    Well firstly, I couldn't see anything in the T&Cs prohibiting it. And secondly, they even have a template request for a refund of any positive balance in my online area. ;)

    But I admit I wouldn't risk it if I had to pay a BT fee on the 0% card.
This discussion has been closed.
Latest MSE News and Guides

Who can suggest a top-notch bed?

This Forumite's mattress is in need of a base

MSE Forum

Top theatre lotteries

How to grab £10-£25 tix for Cabaret, Matilda etc

MSE Deals