Stoozing: Make Free Cash from Credit Cards article discussion

pjala

Was offered 10000 at 0%, for 10 months but with a 3% upfront charge. 3% is £300, so my question is what is the apr working on a monthly basis if it is payed back earlier than it should be, bearing in mind a minimum lets say of 1% also has to be payed back each month?
With interest rates now at 2% is it at all possible to make money on these deals now, and has anyone managed to get a deal where there is 0% and no upfront charge?

Ryan_Taylor

The one thing you want to be careful of is that you're not maxing out your credit cards. Sorry if this was mentioned earlier, but I didn't read every post in the past 19 pages

In the U.S. anyway, the credit scoring system will ding you for over-extending your credit. In other words, if you use a lot of the credit that has been extended to you, that statistically means you are at risk of not being able to pay your debts.

You really don't want to use more than around 30% of your available credit, but definitely stay below 50%.

rodent

Ryan_Taylor wrote: »

In the U.S. anyway, the credit scoring system will ding you for over-extending your credit. In other words, if you use a lot of the credit that has been extended to you, that statistically means you are at risk of not being able to pay your debts.

You really don't want to use more than around 30% of your available credit, but definitely stay below 50%.

Hi Ryan

Are you for real !?
30% you say ?!!! ....I have had upto 8 x my income on credit cards alone(800%), not to mention and extra £3.5M-£4M on mortgage at the same time, do i use just 30%, do I 'eck as like !!!...95%+ and always fighting for more !

If you learn nothing else in life learn this: MONEY MAKES MONEY ...

30% of available Money(credit) = 30% of available Profit (at best !)


If you demonstrate that you can effectively manage your credit you will get CL increases NOT be penalised !

Goddam yanks !!!:p

The Rodent

poker_face

Ryan_Taylor wrote: »

The one thing you want to be careful of is that you're not maxing out your credit cards. Sorry if this was mentioned earlier, but I didn't read every post in the past 19 pages

In the U.S. anyway, the credit scoring system will ding you for over-extending your credit. In other words, if you use a lot of the credit that has been extended to you, that statistically means you are at risk of not being able to pay your debts.

You really don't want to use more than around 30% of your available credit, but definitely stay below 50%.

rodent wrote: »

Hi Ryan

Are you for real !?
30% you say ?!!! ....I have had upto 8 x my income on credit cards alone(800%), not to mention and extra £3.5M-£4M on mortgage at the same time, do i use just 30%, do I 'eck as like !!!...95%+ and always fighting for more !

If you learn nothing else in life learn this: MONEY MAKES MONEY ...

30% of available Money(credit) = 30% of available Profit (at best !)


If you demonstrate that you can effectively manage your credit you will get CL increases NOT be penalised !

Goddam yanks !!!:p

The Rodent

Got to agree with Rodent. What you have said makes no sense. If they didn't want you to use all of your credit available, then they wouldn't have offered it to you in the first place!

Paul_Wise

comdw wrote: »

The calculator could do with a 'balance transfer fee' box as so many 0% deals have a transfer fee which reduces the amount you earn stoozing by quite a bit.

Great idea! I hope they do this!:T

kurilchik

After reading a lot about getting the most out of credit cards, I have learned a few things which have not been emphasised (or even mentioned in some cases); these are:
1. When you transfer a balance you must make sure the credit limit is not breached by the time the transfer fee is added - you will be hammered even though it's a genuine mistake (penalties and higher interest immediately).
2. Double-check to make sure the minimum payment direct debit is set up in time (they will penalise you if you are 1 day late even if it's their fault).
3 For the usual arrangement of 0% on transfers for X + n months with 0% on purchases for X months (a shorter period), don't fall into the trap of making ANY purchases, thinking you can pay off the purchases debt after X months and continue at 0% on the transfers debt. After X months you immediately start paying the high interest rate on all your purchases - this is because your one-off payment is used first to reduce your TRANSFERS debt! If it wasn't clear before, THIS is why you must not use that card for purchases during the full 0% period.
Hope that's of interest

NickX

kurilchik wrote: »

For the usual arrangement of 0% on transfers for X + n months with 0% on purchases for X months (a shorter period), don't fall into the trap of making ANY purchases, thinking you can pay off the purchases debt after X months and continue at 0% on the transfers debt

Thanks for your post.

Just to add there is one exception to this rule of not mixing Purchases and Balance Transfers on the same card. That is when X = n, i.e. the two promotions are for identical terms.

hleddyuk

Hi,
I have a virgin credit card on 0% until June 2009. Does anyone know how long I need to wait after closing the account in June till I can apply for another Virgin card at 0%.

YorkshireBoy

hleddyuk wrote: »

I have a virgin credit card on 0% until June 2009. Does anyone know how long I need to wait after closing the account in June till I can apply for another Virgin card at 0%.

You could apply straight away (or even now!) for a Virgin Amex card, but personally I'd wait a full 12 months before applying for *exactly* the same Virgin Money card.

There are other options if you wanted a long introductory period...the MBNA Platinum Plus card for example has (the best part of) 14 months for only a 2.9% (S)BT fee.

JimmyTheWig

Remember if you are looking to do a balance transfer to stooz then you will need to look hard to get a good enough interest rate to more than cover the balance transfer fee.