Stoozing: Make Free Cash from Credit Cards article discussion

EMGhb

Who came up with the name "stoozing" anyways? I have to agree with a post a few spots up. The rates are so low right now it doesn't seem worth the trouble.

lynton2107

Hi all.....
I read a suggestion on the internet around paypal which if I'm honest I have limited knowledge of so I thought I would run it past those that might know! As I understand it you can deposit to paypal with a credit card for no fee but withdrawals (again at no fee) you make are to your registered bank account. Could you not therefore get a credit card with 0% on new purchases and utilise that through paypal?
I apologise in advance if there is an obvious reason why this is a no goer that I've missed!

stubbsey

There are fees involved with paypal payments. so i cant see this working. Check their site for relevant fees involved. Just looked into this a little more and its not actually possible to and funds to your paypal account from a credit card. all you can use it for is back up funding for purchases.

lynton2107

Thanks for replying stubbsey and highlighting the errors of my ways! I spent about an hour trawling paypal trying to find fault with the idea! I hope this at least suggests I'm not that lazy but just slightly incompetant! Thanks again.

mau408

Had the egg money card for ages and get cash back and don't pay £1 fees have now fancied taking up the idea of stoozing. My worry is that since I've had my card for ages am I still be allowed to withdraw free of charge my positive balance if my egg money goes into credit making sure I don't over draw into the red?

eddy556

mau408 wrote: »

Had the egg money card for ages and get cash back and don't pay £1 fees have now fancied taking up the idea of stoozing. My worry is that since I've had my card for ages am I still be allowed to withdraw free of charge my positive balance if my egg money goes into credit making sure I don't over draw into the red?

Yes you can still withdraw any positive balance from egg money without incurring any fees. Just use the balance transfer option on the left and select bank account.

Just be careful to only transfer the positive balance, and you will not be charged a penny

mau408

thanks eddy

CannyJock

After some mixed experiences with Egg trying to do this directly from the Egg Money card, a few of us have opened up Egg Savings accounts (takes 2 mins and is instantly available if you're already got an Egg product).

If you send a secure message asking them to transfer the balance from your Egg Money to your Egg Savings you can then withdraw it from the Egg Savings just like any other online bank.

This was after a bit of a debacle where it took over a month to get money out when they were changing their 4% interest on positive balances.

chaz-1989

Hi there,
forgive me, this is my first time on a Forum!
i have read through the Stoozing info 2 or 3 times and im a little confused about the balance transfer method. Forgive me if im missing something but if i transfer £1000 from a credit card at a 4% fee, into a 3-4% savings account how do i make money on the interest?
any advice would be appreciated, i dont have an Egg card so this is my best option if i can work it out!

Thanks!

CannyJock

chaz-1989 wrote: »

Hi there,
forgive me, this is my first time on a Forum!
i have read through the Stoozing info 2 or 3 times and im a little confused about the balance transfer method. Forgive me if im missing something but if i transfer £1000 from a credit card at a 4% fee, into a 3-4% savings account how do i make money on the interest?
any advice would be appreciated, i dont have an Egg card so this is my best option if i can work it out!

Thanks!

You're not missing something You'd make a loss on that as a stooze.

There's a calculator that you can use to check out what your profit is likely to be. I've put the details in you've asked about (assuming it's the 16 month Virgin Money card you're looking at) and it comes out with:

Stoozing Profit Prediction

Data entered by the user
Balance to be transferred (pounds)...... 1000
BT card interest rate (%) .............. 0
Introductory period (months) ........... 16
Balance Transfer Fee (%) ............... 4
Maximum BT Fee (pounds)................. No Maximum
Min Monthly Payment Type ............... Fixed
Min Monthly Payment Amount (% or pds) .. 25
Savings interest rate (AER %) .......... 4
Tax rate ............................... Basic Rate

Your Results
Balance Transfer Fee paid (pounds)...... 40
Stooz pot balance at end of intro ...... 643.71
Credit card balance at end of intro .... 640
Gross Profit before tax on interest .... 3.71
Tax on interest to be paid ............. 8.74
Your Profit (pounds).................... -5.03

Created using the Stoozing Calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission.

BUT - if you were able to do the transfer to an Egg Money card and only pay a 2.98% fee for the 16 months and your savings account were paying 6% (A&L or Abbey) then you'd be making a profit - try the calculator with these and you'll see what I mean