New stooze

Hi.

Newbie to stopping but not mse and confident with finances

Im thinking of having a go. Start of very small. And see how it goes. I've got to credit but until im setup I'd only use existing credit .

I have a limit of 9100 on a Barclaycard. I've got an offer of 0℅ interest for 1.9 fee. Money transfer. Until June 17 ( 6 months ). Should I transfer say 4000 to fill up a tsb classic plus and a nationwide. In June I'd thrn see how it's gone as nd whether I want to proceed again

Cheers

Comments

  • MallyGirl
    MallyGirl Posts: 6,515
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    is the interest worth it, paying 1.9% fee for just 6 months?
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  • TheShape
    TheShape Posts: 1,775
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    Because you pay the fee up-front I think you'd need to earn an average of 3.8% interest over 6 months to break even. With TSB reducing to 3% interest you'd probably want to transfer TSB money to the Flexclusive Regular Saver at £500 p/m to max the interest.

    The return overall isn't great and could be less if Nationwide drop their rates (on the regular saver).

    Perhaps a better way to start would be to get a long term 0% purchase card and do a slow stooze, potentially transferring that balance to a 0%, no fee, balance transfer card as you approach your credit limit/end of term.
  • adindas
    adindas Posts: 6,803
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    Alexdozza wrote: »
    Hi.

    Newbie to stopping but not mse and confident with finances

    Im thinking of having a go. Start of very small. And see how it goes. I've got to credit but until im setup I'd only use existing credit .

    I have a limit of 9100 on a Barclaycard. I've got an offer of 0℅ interest for 1.9 fee. Money transfer. Until June 17 ( 6 months ). Should I transfer say 4000 to fill up a tsb classic plus and a nationwide. In June I'd thrn see how it's gone as nd whether I want to proceed again

    Cheers

    Good if you just want it to learn. But in term of profit, it is not worthy, ypu even do not want to invest time to calculate it. Just roughly a small amount, duration of 6 month and fee of 1.9% you will need an account which is paying 3.8%+ pa just to make a penny if there is money to make considering TSB is dropping its interest soon.
  • Superscrooge
    Superscrooge Posts: 1,171
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    You would be better going for a long (up to 30 months) 0% purchases card with no upfront cost rather than 6 months money transfer with a 1.9% fee

    http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards#virgin30
  • Thanks all appreciate not being hounded for wanting to learn and just take baby steps

    The problem I can see is that my credit o wage ratio will be seen as high ..

    I currently have ..
    NatWest cc limit of 4700. Not used only active as a back up
    Tesco cc. Limit 3300. Was used for a BT but clard not used in 6+month
    Halifax clarity. - us this for every day spend and cleared in full. As the reward £5 is stopping this won't be so lucrative


    If I want to go ahead and start stoozing ( all be it shall scale t start with ) what's the best way to rejig my credit cards to thrn apply for a 0℅ spend ? Close accounts. R just reduce limits to hundreds bot thousands?
  • JimmyTheWig
    JimmyTheWig Posts: 12,199
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    edited 1 December 2016 at 3:33PM
    I would go for fewer high-limit cards.
    The high limits show that other companies think that you are safe.
    Fewer cards show that you're not potentially overstretching yourself.

    So I'd say close the NatWest and Tesco cards.

    [ETA - Hold on, are you saying you won't be getting benefits from the Halifax card in the future? Do you get points from the Tesco card? If so, I'd say close the Halifax card and use the Tesco card for everyday spending and clear in full.]
  • Your hold on. Is correct. The £5 reward for clarity which is why I was using it, is stopping


    Would you thrn close the NatWest and Halifax ?
  • JimmyTheWig
    JimmyTheWig Posts: 12,199
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    If you get points that you can use from the Tesco card, then yes I'd close NatWest and Halifax.
  • TheShape
    TheShape Posts: 1,775
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    Have you already got a TSB Classic Plus Account?

    You might get the TSB Platinum card for up to 20 maths 0% on purchases with 1% cash back on first £500 spent each month. I got declined but got the 10mth Classic card, still with the cash back.

    If you have a Nationwide account and qualify, the Nationwide Select Credit Card is 0% on purchases for 12 mths with unlimited 0.5% cashback.

    Perhaps keep your longest held card, perhaps reduce the limit if high. Close the rest.

    6 or so weeks before your 0% purchase card will get close to its limit or end of 0% apply for a 0%, no fee, balance transfer card. You can also apply for a new 0% purchase card if you want to continue the stooze.
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