New to Stoozing - Steady Away

I think I've posted here before but can't find my post.

Basically I now have 4 cards, two 0% spending at 30% of their limit spent, one bank issued that I've had for years with no balance and just got approved for another 0% spending for 24 months card. Total available credit on cards right now is about 57% of my earnings and I've used approx. 20% of it. I also have a mortgage.

How much is too much credit? Should I keep applying, or am I OK to spend more than the 30% on the other cards and max them out? From a credit score perspective.

Also, the Virgin 0% card I just got approved for has a £6.1k limit, but it says I can draw down £5.5k cash for a 1.9% fee. I'm on Santander 123. Is this worth doing? Will it affect the above? Can I still make purchases after the withdrawal up to my limit?

Thanks!
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Replies

  • VortigernVortigern Forumite
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    mrrodge wrote: »
    I think I've posted here before but can't find my post.
    Click on your username to find your old posts.
    mrrodge wrote: »
    Basically I now have 4 cards, two 0% spending at 30% of their limit spent, one bank issued that I've had for years with no balance and just got approved for another 0% spending for 24 months card.

    With 0% on spending, you're doing a slow stooze, but you seem to be applying for new cards too soon. What's the point of getting a new 0%/24 month card when you still have 70% of capacity on the other cards? While you max out the other cards, your 24 months are ticking away unused.

    It's better IMO to max the first 0% spending card before applying for another.
    Am I OK to spend more than the 30% on the other cards and max them out? From a credit score perspective.
    You already have a mortgage, so why worry about your credit score?
    Also, the Virgin 0% card I just got approved for has a £6.1k limit, but it says I can draw down £5.5k cash for a 1.9% fee. I'm on Santander 123. Is this worth doing? Will it affect the above? Can I still make purchases after the withdrawal up to my limit?
    The 1.9% fee will cost you £104.50
    £5,500 @ 3% interest for 2 years could earn £330 (less than that if the bank balance is reducing as you pay off the card)

    If it's the all round credit card with 24months 0% on balance transfers, money transfers and purchases, you will be able to make purchases up to your limit - just make sure you have the means to pay it off at the end of the deal.
  • mrrodgemrrodge Forumite
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    Thanks for the quick reply!

    Won't a lot of used credit prevent me from getting another card though?

    I worry about my credit score because my fixed rate mortgage runs out in three years, so stoozing will have to (temporarily) stop by then.

    On the money transfer, how is the fee applied? Does it come off the cash withdrawal or go on the credit card bill towards the limit?

    Thanks again.
  • edited 15 May 2016 at 6:00PM
    ChrisJ1988ChrisJ1988 Forumite
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    edited 15 May 2016 at 6:00PM
    I currently have £61k 0% credit and currently spent £27k and earn £65k I still have 70-90% accept chance for new credit cards although there arent many good ones left to apply for so I think you still have a way to go.

    I have that Virgin money card and the 1.9% fee is added to the card balance so if you money transfer £5k you get £5k and owe £5.095k
  • mrrodgemrrodge Forumite
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    So I know I can go to roughly matching my earnings safely... and I see you're using 44% of your credit. I'm now using 50% as I've done the cash transfer and made some more purchases. D'you think I should apply for another card now/in a couple of weeks or continue to max out my current cards aiming for the longer stooze? If I max them out, doesn't it reduce my chances of getting a balance transfer card further down the line?

    Thanks!
  • ChrisJ1988ChrisJ1988 Forumite
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    I intend to use as much of the credit as i can. To be honest, IMO I dont think credit card companies/banks really care how much you use as long as you are keeping up your end of the bargin and paying what you should. And why should they care if you arent missing payments.
    It might reduce your chances of getting a balance transfer card later on, but again who cares, if that does happen you just pay the card off with the money sat in your bank and say thanks for the interest. Rinse and repeat. With the state of mortgages right now banks are keen to give out as much credit as they can to anyone that wants it. Again this is just my opinion and I intend to make hay while the sun shines.
  • chelseabluechelseablue Forumite
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    Can I ask, how/when do you pay of the cards?


    I think I get what stoozing is; you pay for everything you buy/bills on a 0% credit card and the money in your current account you save (hope I've got that right!)


    But when do you pay off the card??
  • ChrisJ1988ChrisJ1988 Forumite
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    If it is a purchase card i usually stop using it with 3 months to go on the 0% deal, see what I owe then pay it off with 2 months to go. This gives me some time if there are any issues.
    I have 7 or 8 cards on the go so I dont like to risk messing it up.
    The balance transfer cards I pay off the full balance with 2 months to go until the deal ends for the same reasons as above. If you can do another 0% balance transfer before the end date even better.
  • mrrodgemrrodge Forumite
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    Here's another question (thanks for many replies, big help):

    I've seen reference to 'Sub-prime' cards on other threads. Are these bad for credit scores/how do we know which are sub prime?

    Mine are with Virgin, Post Office, HSBC and Sainsbury's.

    ChrisJ,

    I'm still unsure of when the optimum time is to apply for the next card... You have many cards and under 50% of available credit used, I just don't know if I should be maxing out the credit I have now before my next card to prolong the stooze or whether I should apply now.
  • ChrisJ1988ChrisJ1988 Forumite
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    Not familular with the term myself, but id guess they just arent the best you can currently get?

    Depends what you want to do and when you apply for more credit. For info my credit score according to clearscore was 550 and when I gained 30k worth of credit my score dropped by 24 points and I didnt have any negative things on there. Bit vague but I am not worried about ability to gain more credit.

    Hope this helps.
  • mrrodgemrrodge Forumite
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    My Clearscore is 511, but now I've done the cash transfer I think next month's score will be hit (I read somewhere that % util on credit amounts to 30% of overall score) - time will tell. Current % util is approx. 55%.
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