Checking my understanding

Hello all,

Been reading through various threads on the forum for a few weeks now and want to check my understanding on creating a "stooze pot".

I understand the 0% on purchases route, but as I don't spend a tremendous amount on a monthly basis feel that route would not really be worth the effort (unless I can talk my wife into putting our food and diesel bills on a card and stooze that money...).

With 0% balance transfer card/s, is the process to take money from something like the virgin money transfer card, which I think has 1.69% fee, to put it into a current account, then transfer the balance from the virgin card to a 0% - no fee card (like the 22 month AA card).

Then, as there is no outstanding balance on the Virgin card I can do another money transfer (through the Virgin card) and then balance transfer that etc.

Depending on what my credit limits are I should be able to fill the top 5% current accounts, giving me 3.31% less the minimum repayments.

Any help gratefully received.
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Replies

  • MallyGirlMallyGirl Forumite, Senior Ambassador
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    there is no need to balance transfer from a 0% Virgin money transfer card to the AA. It is at 0% anyway. You would only do a balance transfer to another 0% card if you still had a balance when the 0% was about to expire.
    The method of building up a 0% balance via purchases is a slow stooze. It depends on how much your outgoings are as to whether this is too slow.
    I use a combination of slow stooze, money transfer and balance transfer. Everything goes through the credit cards anyway as I have an offset bank account mortgage with interest calculated daily so I want to avoid paying for anything until the last possible minute to keep my mortgage interest costs down
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected].
    All views are my own and not the official line of MoneySavingExpert.
  • edited 27 June 2016 at 6:01PM
    mrs_Tmrs_T Forumite
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    edited 27 June 2016 at 6:01PM
    Other than money transfer you can fast stooze with a credit card which will refund positive balances to your bank account. I've done it with Barclaycard others say MBNA. Once you have one of these cards apply for say AA, tell AA you have a non-existant balance to transfer from B/MBNA and when the transfer goes through ask B/MBNA to refund which you can then stooze.
  • Supa_TSupa_T Forumite
    9 Posts
    Ok - glad I checked as this is the part I'm struggling with.

    If I take out a Barclaycard and tell AA I want to transfer a non-existent balance from B (95% of the limit?) - what exactly happens? Don't the AA check that there's a balance to actually transfer? Is it fraud?

    I mean I understand that it's all just numbers in a computer - but if I transfer xxxx from Barclaycard to AA then surely I'm using up some of my credit from B so what is there to refund??
  • Supa_TSupa_T Forumite
    9 Posts
    Ah I think I get it now: The AA effectively "buy" the debt from the Barclaycard (even though there isn't one). So let's just say it's £2000. There is now a £2000 balance on the AA card but a positive £2000 on the Barclaycard, which I get transferred to a current account to start earning the interest on.

    Then I start repaying the minimum repayments on the AA card...
  • mrs_Tmrs_T Forumite
    1K Posts
    Part of the Furniture 500 Posts Combo Breaker
    Supa_T wrote: »
    Ah I think I get it now: The AA effectively "buy" the debt from the Barclaycard (even though there isn't one). So let's just say it's £2000. There is now a £2000 balance on the AA card but a positive £2000 on the Barclaycard, which I get transferred to a current account to start earning the interest on.

    Then I start repaying the minimum repayments on the AA card...

    Yes, and when the interest free period is up you can transfer the remaining debt to another interest free card.
  • mrrodgemrrodge Forumite
    23 Posts
    Is the above legal?! I'd love to do it as at the minute I'm just slow stoozing but that looks tempting.
  • MallyGirlMallyGirl Forumite, Senior Ambassador
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    Senior Ambassador
    For some cards it breaks the T&Cs and would cause you to lose your 0% deal. Barclaycard doesn't seem to mind. It does depend on the card though
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected].
    All views are my own and not the official line of MoneySavingExpert.
  • Supa_TSupa_T Forumite
    9 Posts
    So is there a specific Barclaycard I should apply for if I wanted to pursue this? My wife and I have money in the best 5% accounts at present but this is earmarked for a loft conversion later this year and it would be nice to keep them topped up :)
  • mrs_Tmrs_T Forumite
    1K Posts
    Part of the Furniture 500 Posts Combo Breaker
    I have a platinum with no fee, don't know if it makes much difference since you won't be paying them any interest. I requested refund through secure messaging which is handy for keeping a trail of what you/they say.
  • Hi MallyGirl

    I'm new to MSE and am thinking of having a go at stoozing and wondering if you can help me understand something? I also have a VirginOne account and I am currently a little behind on my plan due to change of circumstances (divorce 😁) so thinking stoozing could help me out. My normal practice is to use my credit card for everything and pay it off in full, and on time, once a month. If I apply for a new credit card which gives me 0% on spending for 25 months then only pay the minimum payments which will allow me to leave my wages in my account for longer, surely I would reach my credit card limit very quickly? If I have to pay off the credit card to keep under the limit then my cash is not building up in the VirginOne account which counteracts the idea of stoozing.... I think....or am I getting this all wrong? Are you using multiple cc to stooze up to £35k?
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