Stoozing: Make Free Cash from Credit Cards article discussion

JimmyTheWig

stevestan wrote: »

bit of a risky business with todays interest rates.

Not risky (you know what it's going to cost you from the start and savings interest rates are unlikely to go down in the meantime) but difficult to find a deal that works.

Hazel._2

stevestan wrote: »

bit of a risky business with todays interest rates.

JimmyTheWig wrote: »

Not risky (you know what it's going to cost you from the start and savings interest rates are unlikely to go down in the meantime) but difficult to find a deal that works.

Yes, it's not really risky as long as you're on top of things, but there's not much profit to be made.

I started stoozing about 3 months ago, since I had a credit card anyway and I always just paid it off in full every month. I thought why not stooze? I applied for a new 0% credit card over 12 months on purchases and have just switched to doing my spending on that. I set up a direct debit to just pay off the minimum on it each month. I am putting the money I would usually have spent on paying off my credit card bill into savings and earning 2.8% on it. Not a massive profit (I calculate around £16 over the year, lol, after tax), but why not? £16 is still £16 and it's easy money.

downshifter98

Pumped up my stoozing over the past 8 or 9 months - constantly amazed at how happy these banks are to keep lending me 'cheap' money and although it's not nearly as lucrative as it used to be, I still enjoy the buzz of having the banks allow me to manage my cashflow effectively (this years looking like a zero spend!). Anyway, currently have BTs with Virgin (9 months 0% 2% fee), Santander (12 months 0% 0% fee), RBS (16 months 0% 2.9% fee) and interest free spending with Halifax (12 months) and now I've received a letter from Cap 1 (whom I'd almost given up on!!) offering a new BT for 9 months with a 1.7% fee - not bad, and with a chunk of the Virgin BT finishing soon, it looks like this game can run a little longer.

Happy days.

JimmyTheWig

And what are you doing with the cash, downshifter? What interest rates are you getting?

downshifter98

Hi JimmyTheWig

I reckon the BTs are costing about 2% per annum and I'm earning more than that on deposit but really I'm just doing it because I can! Love making a little money out of the banks plus it suits my current cash-flow (I have a number of fixed bonds maturing next year, just in time to repay some of the BTs).

ema_o

Hello
Just thinking about a 0% Balance transfer as my slow stooze on Tesco credit card is coming to an end and I have about £5000 on it.

Was looking at the Santander 0% offer - just wondering do you have to be a customer already for this deal, or could I become a customer now and get the credit card once I am one on the offer?

Also could anyone suggest the best way to become a customer? We currently have FD offset mortgage linked to our current accounts so don't want to change where salary is paid in etc, could I get a fairly basic bank account and use that?

Thanks, and apologies if this has been discussed before, I have tried searching but didn't come up with much!

Em

MontyPython_2

ajaxgeezer wrote: »

.... with MBNA you are even better off. MBNA will transfer money into your current account, meaning you can pay off the other card and put the rest in ICICI.

They are usually quite keen to supply new debt in this way to folks on a 0% basis (but with a BT fee) as I found to my benefit last week. A 2% fee is a small price to pay to reduce the balance on a BTL... it becomes 6.74% net in my case

I recently read the Stoozing page and have taken out the advised 13 Month 0% card suggested for purchasing for the next year.
I also already have an MBNA card with 0 balance and coincidentally they have sent me a letter offering me a 12 month 0% period for money transfers to my bank account. Obviously I am interested in taking them up on this but wondered if there were any standard rules I should keep to. For instance, if I submitted tranfering 100% of my available balance, will MBNA start questioning? Am I better to choose a figure more like 80 or 90% of availablility?

JimmyTheWig

MontyPython wrote: »

I also already have an MBNA card with 0 balance and coincidentally they have sent me a letter offering me a 12 month 0% period for money transfers to my bank account. Obviously I am interested in taking them up on this but wondered if there were any standard rules I should keep to. For instance, if I submitted tranfering 100% of my available balance, will MBNA start questioning? Am I better to choose a figure more like 80 or 90% of availablility?

Three answers...
1. Take as much as you want. I've never been questioned as to why I want as much as I can.
2. However, they won't let you take 100%. You have to allow for the balance transfer fee (see answer 3). They normally let you take up to 95%.
3. Consider whether you actually want to do this. Unlike 0% for spending (slow stooz) a 0% interest balance transfer isn't normally 0% APR as you have to pay a balance transfer fee. This could be 4%, for a payment into your bank account (super balance transfer). Consider how much profit you will be able to make taking this into account. Most people get less than 4% interest on their savings and so you may lose money rather than make it.

MontyPython_2

Many thanks Jimmy, a very valid point. The letter states that there will be a charge but cunningly omits to advise at what rate this will be. I will confirm before proceeding.

[Deleted User]

Hi All,

I’m new here so hello everyone ;o)

I’m looking at the options available to do the following:

I am overpaying my mortgage by £300 a month which equals £3,600 over the year. As the interest is calculated daily, I am looking at the option of paying the £3,600 ‘up front’ in one lump sum rather than paying the £300 each month.

Can I use a 0% credit card (12 month 0% for example) to pay the £3,600 off my mortgage and invest the £300 I would have used in overpaying each month? Then, at the end of the year I would pay off the £3,600 ‘debt’ from the credit card?

I have read through the Stoozing Info page and it seems I can do this by using the ‘Simply Spend’ method, but I thought I would run it by the more experienced posters on here )

I would appreciate any comments / advice before proceeding. Thanks,

Paul.