Stoozing: Make Free Cash from Credit Cards article discussion

[Deleted User]

MrFrugalFever said:

Unless I’m missing something here, the only two ways to be able to successfully ‘stooze’ from a credit card is via a money transfer or curve card purchase?

You could still potentially do it with a 0 fee BT card but there aren't many around and you would struggle to make a lot of money these days with low interest rates, maybe 3-3.5% on regular savers. Any MT card with a fee is likely to cost more than you can make through interest

MrFrugalFever

Yes I have just re-thought through the process (thanks to MalMonroe for the link) and understand the alternative option here of getting a big enough credit limit on, spend your normal monthly things on credit card and put disposal income in savings account.
theres very few BT offers with 0% fee so I think you’re right it just wouldn’t pay back dividends with rates so low.

MrFrugalFever

So just want to check for sanity sake...say for example I was to apply for a credit card with 0% spending on 3rd of the month (although not essential for this example) and got a limit of say £2,000, I could spend that £2,000 throughout the month (depositing £2,000 from current account in to my Tandem savings account which pays interest monthly on the 1st each month) and then pay off in full by last available day on statement, I would not incur any interest and would have gained the interest from Tandem. Rinse and repeat?

phillw

MrFrugalFever said:

So just want to check for sanity sake...say for example I was to apply for a credit card with 0% spending on 3rd of the month (although not essential for this example) and got a limit of say £2,000, I could spend that £2,000 throughout the month (depositing £2,000 from current account in to my Tandem savings account which pays interest monthly on the 1st each month) and then pay off in full by last available day on statement, I would not incur any interest and would have gained the interest from Tandem. Rinse and repeat?

That isn't stoozing, that is just paying your credit card bill every month from your savings.

Pretty much all credit cards give you 0% for a month. A "0%" card gives you something like 6/12/18/24 etc months before you pay anything back

But yeah, always have your money sitting earning the most interest. But if you have a 0% for 24 months card, then you can store the money away in a higher earning account. Just make sure you can withdraw it in time to pay the balance off so you don't pay any interest.

MrFrugalFever

phillw said:

MrFrugalFever said:

So just want to check for sanity sake...say for example I was to apply for a credit card with 0% spending on 3rd of the month (although not essential for this example) and got a limit of say £2,000, I could spend that £2,000 throughout the month (depositing £2,000 from current account in to my Tandem savings account which pays interest monthly on the 1st each month) and then pay off in full by last available day on statement, I would not incur any interest and would have gained the interest from Tandem. Rinse and repeat?

That isn't stoozing, that is just paying your credit card bill every month from your savings.

Pretty much all credit cards give you 0% for a month. A "0%" card gives you something like 6/12/18/24 etc months before you pay anything back

But yeah, always have your money sitting earning the most interest. But if you have a 0% for 24 months card, then you can store the money away in a higher earning account. Just make sure you can withdraw it in time to pay the balance off so you don't pay any interest.

I thought it was in a way because I would still be making 30 days of interest, paying it back and then repeating the same process. It’s not quite leaving it untouched in an account but it’s not far off?

[Deleted User]

MrFrugalFever said:

phillw said:

MrFrugalFever said:

So just want to check for sanity sake...say for example I was to apply for a credit card with 0% spending on 3rd of the month (although not essential for this example) and got a limit of say £2,000, I could spend that £2,000 throughout the month (depositing £2,000 from current account in to my Tandem savings account which pays interest monthly on the 1st each month) and then pay off in full by last available day on statement, I would not incur any interest and would have gained the interest from Tandem. Rinse and repeat?

That isn't stoozing, that is just paying your credit card bill every month from your savings.

Pretty much all credit cards give you 0% for a month. A "0%" card gives you something like 6/12/18/24 etc months before you pay anything back

But yeah, always have your money sitting earning the most interest. But if you have a 0% for 24 months card, then you can store the money away in a higher earning account. Just make sure you can withdraw it in time to pay the balance off so you don't pay any interest.

I thought it was in a way because I would still be making 30 days of interest, paying it back and then repeating the same process. It’s not quite leaving it untouched in an account but it’s not far off?

If you have savings in an account that pays interest and use them every month transferring to your current account, that is fine and perfectly reasonable. Similarly, if you had a 0% fee BT card and could put all your big spending on your main card, transfer it, and then have the money in a savings account like a regular saver for a year (say first direct 3.5% or Natwest 3.3%) and take the interest at the end, you could make some money but not a huge amount.

Zoobzi37

I can't believe what I've just read here. 
Life's too short for this kind of nonsense. We only get one life. Don't waste it with stuff like this because you'll end up making money your god
Thr reason this country is in such a mess is because too many make money a god and only think of themselves. 
Shame on this forum for promoting such things as this. 
In the one hand people like Martin condemn the selfish money makers whilst on the other they promote and almost encourage this selfish mentality.
I am appalled by the things being promoted in this thread. 

JuliusCaesar

Zoobzi37 said:

I can't believe what I've just read here. 
Life's too short for this kind of nonsense. We only get one life. Don't waste it with stuff like this because you'll end up making money your god
Thr reason this country is in such a mess is because too many make money a god and only think of themselves. 
Shame on this forum for promoting such things as this. 
In the one hand people like Martin condemn the selfish money makers whilst on the other they promote and almost encourage this selfish mentality.
I am appalled by the things being promoted in this thread. 

It's the banks that are the money makers. I try to screw every last penny out of them that I can do so legally, by stoozing etc.

Drakelet

I did some rough calculations and stoozing over 12 months at an interest rate of 1.9% interest rate (e.g. Atom) is the same as 1% cashback (e.g. Chase), assuming a 1% minimum repayment (e.g. Virgin). However, until month 11, you'll actually be behind (due to compound interest). Higher interest rates (which are now available, and will likely stay that way) make stoozing more appealing - for example, 2.75% (e.g. Santander) puts you ahead at month 10, but by 12 months you're 50% up on the cashback (again, compound interest).

This is assuming my rough calculations are correct of course! It also assumes an unlimited credit limit.

EDIT: I think my assumptions are off and I'm underestimating the benefit of stoozing. I'll check again later.

[Deleted User]

Zoobzi37 said:

I can't believe what I've just read here. 
Life's too short for this kind of nonsense. We only get one life. Don't waste it with stuff like this because you'll end up making money your god
Thr reason this country is in such a mess is because too many make money a god and only think of themselves. 
Shame on this forum for promoting such things as this. 
In the one hand people like Martin condemn the selfish money makers whilst on the other they promote and almost encourage this selfish mentality.
I am appalled by the things being promoted in this thread. 

This site exists to help people make money to survive. 

I don't know about making money a god, at least money is real and you can pay your bills with it