Stoozing: Make Free Cash from Credit Cards article discussion

alfred64

Depends on the length of the 0%. Not much point if it's for 6months but worthwhile if for 24 months or longer

JuliusCaesar

Some money transfer offers come with 0% fees but with interest, so can be used as 'mule cards' in conjunction with a separate fee-free balance transfer card.

I recently transferred £5000 from my Lloyds credit card to my current account for a 0% fee and 4.9% interest. I immediately did a balance transfer to a newly acquired NatWest balance transfer credit card, which offers fee-free balance transfers at 0% for 19 months, setting the payments at the minimum amount each month, which I can repay from regular income. At worst I might have to pay a day's interest (less than £1) on the Lloyds card. I have now invested the £5000 in a 1-year savings product paying over 5%. I will probably reinvest this in another 6-month savings product when it matures, depending on what is happening to interest rates then, and then pay off the balance transfer card when the interest-free period comes to an end.

daivid

DJDools said:

Sorry if this sounds a wee bit dumb (I'm definitely having a moment this past week!), but does it make much sense for a person to take out a money transfer at 0% with a money transfer fee of, say, 3% (if a 0% fee CC is not available to that person) if the 'minimum monthly payment' is 2.5% of the 'transferred amount', and the cash is put away in a fixed savings account earning, say, 5%?

I agree with alfred64 on the time period, also depends on how much you can borrow, whilst for anything 13months plus you can make a profit, if the credit limit is small, say £1.2k, will it be worth the effort? If you can BT £10k+ it won’t take any more effort but will bring in a much higher profit.

Wonkyme

I've taken 10,000 on my credit  card at  3% over 18 months  so 2% pa and paid it into my mortgage saver at 5% atm so I'm making £450. I think so why are the cards still offering  such cheap rates do the take a chance that you might default payment BTW I never have.

datz

Wonkyme said:

I've taken 10,000 on my credit  card at  3% over 18 months  so 2% pa and paid it into my mortgage saver at 5% atm so I'm making £450. I think so why are the cards still offering  such cheap rates do the take a chance that you might default payment BTW I never have.

Similar to my situation - the current profitability is just too hard to resist. Most recently took up a 0% MT offer from Barclaycard (20 months, 3% fee) - currently sitting in easy access savings, while I wait on 18 month fixes to continue creeping up. Gives me up to another month before I have to commit.

RetSol

datz said:

Wonkyme said:

I've taken 10,000 on my credit  card at  3% over 18 months  so 2% pa and paid it into my mortgage saver at 5% atm so I'm making £450. I think so why are the cards still offering  such cheap rates do the take a chance that you might default payment BTW I never have.

Similar to my situation - the current profitability is just too hard to resist. Most recently took up a 0% MT offer from Barclaycard (20 months, 3% fee) - currently sitting in easy access savings, while I wait on 18 month fixes to continue creeping up. Gives me up to another month before I have to commit.

Oo-er.  Not in the same league but... 

Barclaycard has offered me, until 30th June, c. 3k MT at a fee of 2.6% until end-June 2024, ie c. 11 months from today.

I am tempted because it will boost my slow stoozing. 

Raisin has a 9-month fix at 5% and I have the Skipton tracker for the remaining period. 

But will the offer improve if I wait until 1st July? 

Do I stick or twist?