Stoozing: Make Free Cash from Credit Cards article discussion

chaz-1989

Thank you CannyJock.
That makes sense. So in order to win i need to find a lower transfer fee and a higher interest rate, Got It!

Thanks again

boohooo

I noticed on stoozing that a super balance transfer can transfer a balance to your current account, is that on already transferred balances from other cards or a balance that you might incur on that particular credit card?

Once you transfer that to your account you can put it into an ISA then at the end of the 0% period shift it back. Once the money comes out of the ISA isn't it taxable so once you put it back into your current account would there be any problems?

This may be common sense but money that's put into an ISA is tax free up to the limit, most people have already paid tax on what they put in anyway as they are taxed at source by their employer. Then when you take it out, in effect you are re-taxed therefore is the actual amount of interest earned beneficial?

If you open an ISA just for the purpose of this then is it possible to close it as soon as the full money is withdrawn?

CannyJock

boohooo wrote: »

I noticed on stoozing that a super balance transfer can transfer a balance to your current account, is that on already transferred balances from other cards or a balance that you might incur on that particular credit card?

Any funds.

boohooo wrote: »

Once you transfer that to your account you can put it into an ISA then at the end of the 0% period shift it back. Once the money comes out of the ISA isn't it taxable so once you put it back into your current account would there be any problems?

Nope

boohooo wrote: »

This may be common sense but money that's put into an ISA is tax free up to the limit, most people have already paid tax on what they put in anyway as they are taxed at source by their employer. Then when you take it out, in effect you are re-taxed therefore is the actual amount of interest earned beneficial?

Yes

boohooo wrote: »

If you open an ISA just for the purpose of this then is it possible to close it as soon as the full money is withdrawn?

Yes

Would suggest you need to do a lot more background reading on financial products and how they work before diving into stoozing.

boohooo

Thanks Canny jock, generally interest rates are low on saving accounts at the moment anyway therefore taking into account the transfer fee, it's not that beneficial!

CannyJock

boohooo wrote: »

Thanks Canny jock, generally interest rates are low on saving accounts at the moment anyway therefore taking into account the transfer fee, it's not that beneficial!

You can get 6% up to £2500 on some accounts:
http://www.alliance-leicester.co.uk/current-accounts/premier-direct-current-account.aspx
http://www.abbey-products.com/banking/6plus6.html

But you need to be prepared to do a bit of juggling. It's doable, but it's harder work than it used to be.

As an aside, I agree with you that tax on savings is a con when you're already been taxed on your earnings, and then there's inheritance tax which is another story.

EDIT: If you want to see what sort of profit can be made on a stooze, use the stoozing site calculator (http://www.stoozing.com/calc.php) - you can play around with different interest rates, fees and durations to see when you think it's worthwhile. The stoozing site is sponsored and supported by MSE.

boohooo

Thanks Canny jock, its all much clearer now!

I agree, the inheritance tax rates and interest are just daylight robbery!

kernalpop

Hi All...

Just need to pick your brains.

I want to buy a new car and want to apply for a credit card whereby I can get a high credit limit so I can transfer the balance to my current account thereby making it a cheap loan at 4% rather than the average of 7.7% I found on Money Supermarket.

It's been a few years (3/4) since I did balance transfers and can't remember how the credit limit is decided. Is there anyway I can ask for a limit or do something to get a high one. I have an excellent credit score as I got my experian reports a few months back and have a couple of platinum cards with £4k and £7k limits on them and always pay them in full when I spend on the cards.

Any help appreciated..

Cheers

KP

NickX

kernalpop wrote: »

Is there anyway I can ask for a limit or do something to get a high one.

I'm afraid not, no one can predict a Credit Limit without going through the application process. As you want to complete a 0% Money Transfer (Super Balance Transfer), your options are limited, but the MBNA and Virgin cards are known to give decent limits and fortunately offer this facility.

Good Luck.

wallsy

Hi I am a new member and just getting started on the site. Can some one give me a idiots guide on how to start stoozing? Are there any down sides or things you should be careful of? Thanks in advance. Wallsy )

CannyJock

wallsy wrote: »

Hi I am a new member and just getting started on the site. Can some one give me a idiots guide on how to start stoozing? Are there any down sides or things you should be careful of? Thanks in advance. Wallsy )

Potentially massive downsides. Read this guide on stoozing from the stoozing site (sponsored and supported by MSE).

Any questions after digesting, come back and ask.