Stoozing: Make Free Cash from Credit Cards article discussion

MissyD_2

I thought it was 6 years before wiping like credit files???

YorkshireBoy wrote: »

I've had around 5 Halifax credit cards in the last 7 years (a mixture of BT and purchase cards...all of them on 0%).

Every time I cleared a balance, within 30-90 days, another card was either offered as pre-approved or successfully obtained through a standard application.Yes there are. It's just that you haven't found out what they are yet. :)No such, universal, thing exists.They can keep your data* for ever if they wish! For example, try bagging an FD current account £100 incentive when you had an account with them 15 years ago.


* By 'data' I mean something as basic as name and address.

MissyD_2

ecdub wrote: »

Hi there,

I am sure this has been covered in this thread but... With 0% cards, do you still need to pay off the minimum each month?

Also - will it have any different affect on your credit file for only paying off the minimum (if that is the case). Does only paying the minimum come across differently from those that pay it off in full each month?

Thanks,

YES!! Or the 0% rate vanishes quicker than you can notice it on your statement!
I have done both, as long you as you pay on time (payment clears on account before due date) and don't miss any payments it doesn't seem to have an adverse affect.
Generally paying on time improves your credit score

MissyD_2

alwaystryyourbest wrote: »

Hi just coming here for advice I have been offered a 0 percent for balance transfers for 12 months with my old sainsburys credit card ..
But this offer has came 5 months to early . Just wondering if I asked them again in 5 months what's the changes of them offering it to me again ???

Have a look around closer to the time, there are usually plenty on offer all the time, go for the lowest fee vs longest rate ..... you may need to compare a few different ones....

matttye

Forgive me if I'm wrong but cant you make free money using any credit card - not necessarily just a 0% one?

The idea is that if you make purchases on your credit card rather than what's in your bank account, if you have a current account that attracts interest, like me, then you will have more money in your account to gain interest on throughout the month, and so long as you pay the credit card off in full every month, there's no interest to pay.

I appreciate that this method won't let you borrow more than you earn to earn massive amounts of interest but it's still free money

chuck_taylor

Can I double check I have got stoozing right?
All examples.
You get a 0% credit card for 12 months. Every penny you spend goes on the credit card for 12 months.
After direct debits etc your earnings are £1,000 a month which you would have spent anyway.
The money you earn, that you would have spent normally, goes into a high interest savings account for the 12 month period at let's say 2%.
2% of the first £1,000 is £20. £240 over the year right? This is what you make at that rate of spending/saving?
You don't need to spend the £1,000 as the £1,000 that is going into the savings account is still going to make the 2% interest regardless. Say you put away the £1,000 but are only spending at a rate of £600 a month.
You pay the minimum credit card charge each month.
You build up interest via the savings, the money you make out of this.
After 12 months you pay off the credit card with the money from your savings account. At £600 a month then £7,200 on the card.
You then take out another credit card and do it all over again.

Is that right?
What kind of money making are we talking over a 12 month period?
Is it advisable to cancel all direct debits from your bank account and pay your bills via the credit card thus maximising earning potential?

Thanks.

argomatt

Hi Chuck Taylor,

Yes, you have the principles of stoozing correctly.

The amount you can make obviously depends on the credit limit you are offered, and the interest rate of the savings account you use to store up your cash.

For example, if your credit limit offered is £4000 and you steadily use it up over the course of a year, your average savings balance will be £2000.

£2000 saved at 2.5% for a year will get you £50 interest.

Hope that helps

chuck_taylor

Thanks Matt.

Are there any negatives in stoozing? Any scare stories?
I guess you need to keep a watchful eye on what you've accumulated in your savings and what your credit card balance is along with making the regular card minimum payments.

I'll be mostly working out my finances this week. See what I averagely spend a month and seeing what kinda credit I can get.
(I currently have a credit card with a max of £3,600 but this has been set for years, is always paid when used and regualarly sits at zero).

What about the direct debits for water, gas, electric, TV, insurance etc? Best to cancel DD's and pay via card???

Herbalus

chuck_taylor wrote: »

What about the direct debits for water, gas, electric, TV, insurance etc? Best to cancel DD's and pay via card???

Don't forget that some energy companies offer a discount by paying via DD, sometimes as much as 5-6%, which is obviously better than paying by credit card to stooze. Some bills however, such as insurance, can often be more expensive if you pay via direct debit as they effectively view it as a years loan that you pay in 12 monthly instalments. Depends on your products so check the T&Cs before changing anything.

Naturally the more you spend on the credit card the more interest you will earn, but watch out for the discounts that you can get via direct debit.

robertno5taylor

What is the best card to use to pay for these bills?

Mairi04

just tried to cancel 2 cards for second time; got £5 applied to one and £40 to other.............still need to cancel though, it is a hard sell! any tips how to get past the hard sell?? can I cancel in writing?