Stoozing: Make Free Cash from Credit Cards article discussion

avrumit

What I am thinking of doing is doing a balance transfer from Barclaycard to LLoyds when my Lloyds balance is £0 meaning I don't owe them anything. So if I ask Barclaycard to transfer £5000 onto my Lloyds it will go into credit.
Can I then ask Lloyds to transfer it to my current account or will they say that I have to spend it. Or what if I use a credit card cheque when my account is in credit? Will I have any charges?

CannyJock

avrumit wrote: »

What I am thinking of doing is doing a balance transfer from Barclaycard to LLoyds when my Lloyds balance is £0 meaning I don't owe them anything. So if I ask Barclaycard to transfer £5000 onto my Lloyds it will go into credit.
Can I then ask Lloyds to transfer it to my current account or will they say that I have to spend it. Or what if I use a credit card cheque when my account is in credit? Will I have any charges?

Try calling Lloyds customer services (number on the back of the card). Ask them what would happen if you got a refund to your Lloyds credit card that created a positive balance.

GSXRCarlos

Has anyone found a decent way of making this work at the minute?

I'm interested, but i've just bought a house and signed up to a mortgage, i'm wondering if i can buy new things for my house, and pay for them on a new 0% purchase card, then balance transfer at the end of the interest free period

all the while saving my money

Any thoughts?

CannyJock

GSXRCarlos wrote: »

Has anyone found a decent way of making this work at the minute?

I'm interested, but i've just bought a house and signed up to a mortgage, i'm wondering if i can buy new things for my house, and pay for them on a new 0% purchase card, then balance transfer at the end of the interest free period

all the while saving my money

Any thoughts?

It's what the smart kids are doing these days

Why spend your own money when you can spend someone else's and make a profit? There's a useful guide to "slow stoozing" on the stoozing website.

Full list of purchase cards at http://www.stoozing.com/purchases.php

If you've not already, it's always worth checking your credit report before embarking on any stoozing or credit card activity.

JimmyTheWig

Note that you can get £20 cashback for applying for the HBOS credit card which has 9 months 0%. A nice bonus to get you started! Though from the link above deals for longer than 9 months are available.

Balance transfering at the end of the 0% deal might not help make you money. That would be subject to the same problems as fast stoozing is at the moment - that it is difficult to find a savings interest rate that gives significant returns compared to the balance transfer fee. But then, potentially, things might be different in 9-12 months time...

The only thing to be aware of is with spending...
DON'T use this card to spend on stuff you wouldn't normally do just because it is a credit card and is "making you money". One impluse buy on something that you don't need and otherwise wouldn't have bought will wipe out all of your profits.
You might find it best to use it only for planned purchases (e.g. weekly supermarket, petrol, a planned shopping trip to buy a sofa, etc) rather than on impulse buys to ensure you don't fall into this trap.

GSXRCarlos

Jock,

I've read the info on stoozing, and that's what got me thinking, i'm going to need to spend money on the house anyway, and i've been working out my budgets so it makes sense.

I've also just checked my credit report and everything seems in order, is there something i should be looking for in particular?

Jimmy,

I'm good with my credit cards at the minute, and i'm thinking of overpaying my mortgage when i get the cash together, that way i'll basically be getting 6% interest (as my mortgage rate is fixed at 6%)

does that make sense?

CannyJock

GSXRCarlos wrote: »

I've also just checked my credit report and everything seems in order, is there something i should be looking for in particular?

Just the basics - no dormant cards you don't know about, on electoral register, no financial associations you don't know about.

JimmyTheWig

GSXRCarlos wrote: »

I'm good with my credit cards at the minute, and i'm thinking of overpaying my mortgage when i get the cash together, that way i'll basically be getting 6% interest (as my mortgage rate is fixed at 6%)

does that make sense?

It does and it doesn't.
Is this an overpayment or an offset account?
If it's an offset (or you can easily get your overpayments back) then this is fine. Otherwise beware.

Consider the following...
1. Your 0% deal on a particular card is due to run out. Things have changed (e.g. your situation, the credit crunch has worsened, etc) and you can no longer get another 0% deal (or can only get one with a very high fee). What will you do?
2. Your fixed rate mortgage deal is due to end soon. You are looking round for a new deal. How might lenders react to what would look like high credit card debt?

GSXRCarlos

Thanks Jock,

Everything you mention is in order

Jimmy,

As far as i understand, it's an offset mortgage so could be possible, i was talking things through with a friend and don't want to jeopardise my mortgage/house, so i actually think i'm going to leave this for 12 months.

My 3 year fixed period will only just be starting soon, but i may get a new credit card with 0% on purchases for as long as possible so i can keep my options open for 9-12 months time, may be the best time to start stoozing if credit etc starts to bounce back a little bit

Cheers for your input guys :beer:

JimmyTheWig

Sounds like a good plan. Slow stooz for now, putting the money into a savings account (*). Then when the 0% on purchases finishes either pay if off or transfer the balance if savings rates have picked up.

(*) If you've got a true offset mortgage then this would probably be the best savings account to use.