New to Stoozing

Hi All,


I have a mortgage but no other immediate debts and the only credit card I have ever had which I still have is a Clarity card.


I like the concept of stoozing but using the money for enhanced savings, rather than using the card for immediate purchases which I would generally pay for on my debit card.


Can someone help me get started please?


Thanks

Comments

  • MallyGirl
    MallyGirl Posts: 6,515
    Photogenic First Anniversary Name Dropper First Post
    Senior Ambassador
    The challenge at the moment is that the interest rates on savings are pretty low.
    You can build up a balance, at 0% on a purchases card over time whilst putting the money for those purchases in an interest earning account. There are a few bank accounts and regular savers that will generate 3-5%.
    If you want to build up the balance more quickly you can apply for a 0% money transfer card but these usually have a fee of around 3% so you need to be sure you are going to make more than that in interest for it to be worthwhile.
    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.
  • Cotta
    Cotta Posts: 3,667 Forumite
    That's very good advice - what if I took out £2000 through stoozing on 0% interest and poured it into p2p?
  • MallyGirl
    MallyGirl Posts: 6,515
    Photogenic First Anniversary Name Dropper First Post
    Senior Ambassador
    you will probably need to pay a 3% fee for a money transfer - make sure you get the right sort of card.
    P2P has some risk and the returns aren't massive but lenders like ratesetter have intro deals which boost it. Make sure you get a referral - there is a thread about this on here
    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.
  • Outsider_83
    Outsider_83 Posts: 166 Forumite
    Can I ask what P2P is and can I read about it on here?
  • MallyGirl
    MallyGirl Posts: 6,515
    Photogenic First Anniversary Name Dropper First Post
    Senior Ambassador
    http://forums.moneysavingexpert.com/showthread.php?t=4313323

    tells you some info. Slightly better rates than most savings but there is risk that you will be defaulted on and lose money.
    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.
  • edinburgher
    edinburgher Posts: 13,423
    Name Dropper First Anniversary First Post
    Forumite
    There are platforms offering considerably higher rates of return (10%+), even some with secured loans, but this is very much the risky end of the spectrum.

    I did exactly what OP was suggesting and while I was able to make a 10%ish return for a couple of years with a transfer at 1.89%, it always felt quite stressful as I had to watch my rate of return like a hawk and ensure that I was always invested.

    There were definitely losses, although my return for the period still exceeded the best going rates on savings by roughly 100% even after fees.
  • JuliusCaesar
    JuliusCaesar Posts: 88
    First Anniversary First Post
    Forumite
    Some credit cards (particularly MBNA) allow you to withdraw money into your bank account from your credit card with zero fee and at a lowish rate of interest (typically 4.9%). They are likely to offer you this only when you have held a card with them for a while. Once you see this offer in your account, apply for a balance transfer card with a long interest-free period with another credit card provider. You could also ask MBNA to increase your credit limit at the same time.

    You can then use the 'two card trick'. Withdraw the maximum amount of cash from the MBNA card into your bank account, then a couple of days later balance transfer the same amount to the interest-free credit card. MBNA may charge you a day or two's interest, but it will be pennies.

    Another trick is to use a purchase credit card with a long interest-free period to pay money into a utility or other account that allows you to withdraw any credit balance to your bank account. I get my gas and electricity from Ovo energy, and every few weeks I credited one thousand pounds to my account by credit card, which I withdrew to my bank account a few days later. I managed to max out the credit limit on an interest-free purchase credit card using this method.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 341.7K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards