Stoozing: Make Free Cash from Credit Cards article discussion

YorkshireBoy

dee100 wrote: »

Hi, I am going to get my 1st stoozing card. Halifax, 15 mths interest free, but has 3% t/fer fee. I presume this is the fee I will be charged when I t/fer to another card at end of 15 mths?

No. It's the fee Halifax charge for transferring debt you have elsewhere to their card now. However, you wouldn't want to use the BT facility on this particular card because it offers only 6 months 0% and charges a 3% fee for the privilege. This card should only be used for purchases, unless you plan to clear the entire balance before the first 6 months is up...after which you could resume the 0% on purchase slow stooz.

HSBC, 12 mths interest free, don't know their t/fee.

It's 2.5%, but you're not comparing like for like, at least not for BT's, because the HSBC card is 4.9% APR (until 2012) on BT's.

Since you appear to be confusing slow stoozing with fast stoozing (and don't understand what a BT fee is), I suggest you re-read some of Martin's credit card articles for the basics.

Which is best?

For slow (simply spend) stoozing, the Halifax is best. It has a longer introductory period and has lower minimum payments (2% vs 3% on the HSBC card).

I got a Nationwide credit card 3 mths ago for holiday cash withdrawals.

Never, ever, ever, withdraw cash on a credit card - not even Nationwide's. Use the credit card for purchases, and a Nationwide debit card (linked to their FlexAccount) for your cash withdrawals.

Is this too early to apply for another card?

I wouldn't have thought so.

dee100

Awsome advice! I shall get the Halifax card on mon. At the end of the 15 months, I will work out where to tranfer the balance to. Thank you Yorkshire Boy!

glenT_3

I was thinking, if we take this to the extreme, could I get enough on 0% to pay off my mortgage £35k, when my current deal expires next Aug'. I normally get a 2 yr deal, costing me about £300 -400 in fees + the 6 -7 % interest. I could stooze until the 0% deals dry up, at which point I can apply for a new mortage as normal. By such a time, the base rate my have dropped, so avoiding this period of high rates.

The only risk I see, is that all the debt / credit cards will affect my credit score, so if I do need to apply for a mortgage I either get shafted (no change there) :mad: with a high rate or can't get one at all.

I'm not an expert at credit scoring, so don't know the likelyhood of this happening. Anyone advise ??

Any thoughts on my theory ? If I can be bothered I might see if I can work out how much I can save. over 2 yrs and 22 yrs

glenT_3

I was thinking, if we take this to the extreme, could I get enough on 0% to pay off my mortgage £35k, when my current deal expires next Aug'. I normally get a 2 yr deal, costing me about £300 -400 in fees + the 6 -7 % interest. I could stooze until the 0% deals dry up, at which point I can apply for a new mortage as normal. By such a time, the base rate my have dropped, so avoiding this period of high rates.

The only risk I see, is that all the debt / credit cards will affect my credit score, so if I do need to apply for a mortgage I either get shafted (no change there) :mad: with a high rate or can't get one at all.

I'm not an expert at credit scoring, so don't know the likelyhood of this happening. Anyone advise ??

Any thoughts on my theory ? If I can be bothered I might see if I can work out how much I can save. over 2 yrs and 22 yrs

HoneyPie_2

Hi Guys,

I am looking for a little advice.. I am thinking of stoozing on the virgin credit card to let some money sit in my offset mortgage, the interest rate is 6.7%... I figure with a BT fee of 2.98% it seems worth it over the 15 months...

However - I have already got a 0% credit card - with debt on it... got another 9 months before that runs out.. So because I applied for a card 3 months ago I am worried about applying for another one - and whether that would seriously affect my credit rating.... Do you think it will?, I am planning on paying off the debt before the 0% runs out on my existing card - so shouldn't need another one in the future for debt..

What does everyone think? As ever any advice will be appreciated..

HoneyPie

danthemoneysavingman

GARYFIRST wrote: »

Hi
Help
I’m dilettante
How can I post my question?

Which definition do you mean?
1. showing frivolous or superficial interest; amateurish; "his dilettantish efforts at painting"
or
2. dabbler: an amateur who engages in an activity without serious intentions and who pretends to have knowledge

either way, you have posted your question already!:rolleyes:

danthemoneysavingman

glenT wrote: »

I was thinking, if we take this to the extreme, could I get enough on 0% to pay off my mortgage £35k, when my current deal expires next Aug'. I normally get a 2 yr deal, costing me about £300 -400 in fees + the 6 -7 % interest. I could stooze until the 0% deals dry up, at which point I can apply for a new mortage as normal. By such a time, the base rate my have dropped, so avoiding this period of high rates.

The only risk I see, is that all the debt / credit cards will affect my credit score, so if I do need to apply for a mortgage I either get shafted (no change there) :mad: with a high rate or can't get one at all.

I'm not an expert at credit scoring, so don't know the likelyhood of this happening. Anyone advise ??

Any thoughts on my theory ? If I can be bothered I might see if I can work out how much I can save. over 2 yrs and 22 yrs

i don't rate your chances of building up a pot of such size in the current market - but praps others have different experience?

its not a bad idea but I don't reckon you could pull it off.

too many CC apps close together will kill your bureau score resulting in a situation something like you suggest yourself.

any futher thoughts anyone?

good luck either way
DtMSM

danthemoneysavingman

HoneyPie wrote: »

Hi Guys,

I am looking for a little advice.. I am thinking of stoozing on the virgin credit card to let some money sit in my offset mortgage, the interest rate is 6.7%... I figure with a BT fee of 2.98% it seems worth it over the 15 months...

However - I have already got a 0% credit card - with debt on it... got another 9 months before that runs out.. So because I applied for a card 3 months ago I am worried about applying for another one - and whether that would seriously affect my credit rating.... Do you think it will?, I am planning on paying off the debt before the 0% runs out on my existing card - so shouldn't need another one in the future for debt..

What does everyone think? As ever any advice will be appreciated..

HoneyPie

If you don't think you'll be needing to apply for credit for some time after this, any impact to your 'credit rating' after 6 months have passed will be negligible.
Hope this helps!

MushyPeas

Hiya :wave:

I've done a slow stooze on an MBNA credit card (0% purchases) and that offer runs out in January. I'm looking at transferring the £4K onto another 0% card so I can keep stoozing.

I've read Martin's article and have used the calculator, but want to double check my figures with someone if that's ok?

Current 0% card: MBNA £4K
Savings account 5.75 AER (yep I know it's not the best rate, next on my list to arrange!)
Barclaycard 0% 14 months 2.5% transfer fee

Using the stoozing calculator I put in the following figures:

£4K 0% interest
5.75% for 14 months
Stoozing profit = £215.48

Then I calculated 2.5% of £4k = £100

Therefore profit is £215.48 - £100 = £115.48

Erm, are my figures correct?

Thanks in advance of a clever person's reply

YorkshireBoy

You've forgotten several things...

1. Your minimum payments (2.25%?) will reduce the stooz pot capital.

2. Your interest may be taxed at 20%.

3. You won't get 14 months; a more realistic figure would be 13 months.

According to this calculator your profit, incorporating the above 'adjustments', would be £75.19