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? 

s71hj

I notice there hasn't been anything here for over a year, is there somewhere else on the forum this subject is being discussed?

NorwichMan

If you look at the Stoozing sub forum within the credit cards area (which includes this thread), you can see several posts and discussions on this topic.

s71hj

NorwichMan said:

If you look at the Stoozing sub forum within the credit cards area (which includes this thread), you can see several posts and discussions on this topic.

Great. I'll track that down