Stoozing Tips needed

kartingmad

Hiya 

So i have a few credit cards sitting about with nothing on them and wanted to try and make some money off them now rates are getting back on the up.

I have MBNA offering these 2 rate below



Obviously the 1st one is pretty terrible due to the fee.

The 2nd one is it possible to take this and then immediately balance transfer the 11625 to another card which i can do to stop the 4.9% pa. I can then leave this in a savings account and basically earn the full amount as there is no fee. (obviously minus any balance transfer fee)

THanks 

[Deleted User]

Assuming you have another card with sufficient space yes, though the BT card fee may well be hefty for £11625 which you'd need to make up in interest to make a profit. Keep in mind too you have to have a plan to pay off the BT in the time before it runs out as you have no guarantee you would get another offer to move it off again.

DullGreyGuy

Is this a money transfer offer or balance transfer offer? Obviously only works if its the former. 

noh

Yes you can do as you say.
I have just done the same.
I did a money transfer from MBNA to my current account 4.9%pa zero fee and immediately after I have requested a balance transfer to my new NatWest credit card which is offering  0% with zero fee for 22 months.
I also have today done a money transfer from Halifax Clarity Card to my current account same terms as MBNA and then requested a balance transfer to a new Tesco CC that has a 0% BT offer with 1% fee for 28 months.

You can work out the potential profits using the stoozing calculator.
https://stoozing.com/stoozcalc.php

JuliusCaesar

Yes I have done this several times.

With rising interest rates it is now possible to make a profit on 0% balance transfers even when there is a fee. For example, I am planning to make a money transfer from my Lloyds credit card, at 4.9% over 48 months with no fee, and then immediately transfer the balance to my Barclaycard, which is offering 0% for 18 months, with a 2.9% fee. (I am not eligible for any-fee-free B/T cards at present as I already have a large stooze pot spread over a number of cards). The current top one-year fixed-rate savings account now offers 4.2%, so if I withdraw £10,000 I can still make £130 profit in the first year, with further profit in the remaining 6 months.  

noh

JuliusCaesar said:

Yes I have done this several times.

With rising interest rates it is now possible to make a profit on 0% balance transfers even when there is a fee. For example, I am planning to make a money transfer from my Lloyds credit card, at 4.9% over 48 months with no fee, and then immediately transfer the balance to my Barclaycard, which is offering 0% for 18 months, with a 2.9% fee. (I am not eligible for any-fee-free B/T cards at present as I already have a large stooze pot spread over a number of cards). The current top one-year fixed-rate savings account now offers 4.2%, so if I withdraw £10,000 I can still make £130 profit in the first year, with further profit in the remaining 6 months.  

The drawback with Barclaycard is their minimum repayment of 2.25% of outstanding balance.
If you use a fixed rate savings account for the stooze pot then the minimum payment of an average of £200 a month on £10k has to be found from elsewhere.
This relatively high minimum repayment also reduces the potential profit. Your estimate of £130 profit in the first year is a little high I make it somewhere between £80 and £100 depending on the interest rate that would be applied to the money used for the minimum payments.
Having said that I too have a Barclaycard BT offer of 23 months at 0% 2.9% fee which I am tempted to use If I can find an efficient way to fund the minimum payments.

JuliusCaesar

noh said:

The drawback with Barclaycard is their minimum repayment of 2.25% of outstanding balance.
If you use a fixed rate savings account for the stooze pot then the minimum payment of an average of £200 a month on £10k has to be found from elsewhere.
This relatively high minimum repayment also reduces the potential profit. Your estimate of £130 profit in the first year is a little high I make it somewhere between £80 and £100 depending on the interest rate that would be applied to the money used for the minimum payments.
Having said that I too have a Barclaycard BT offer of 23 months at 0% 2.9% fee which I am tempted to use If I can find an efficient way to fund the minimum payments.

I deal with this issue by practising slow stoozing in parallel. All my regular spending is currently on a Tesco credit card with 0% interest over 23 months, and I pay the minimum balance on this each month. I also pay the minimum amount on all my fast stoozing cards. The total is still less than what I had spent on my Tesco card during the month, so I save the rest.

noh

I have just taken advantage of the Barclaycard offer using MBNA as the mule card.
£13250 for 23 months with 2.9% fee.
Should be around £425 profit at 4% savings rate.

Brie

Where are people finding the high saving rates to make this profitable?? Everything I've seen is too restrictive or still has tiddly rates.

[Deleted User]

Brie said:

Where are people finding the high saving rates to make this profitable?? Everything I've seen is too restrictive or still has tiddly rates.

There are a few current accounts, Barclays launched a rainy day fund 5.12% up to £5000, Nationwide have a 5% for £1500 for a year, there are fixed rate accounts up to 4.6%. 

noh

One year fixed rates are available at 4% or more. Two year at 4.5%
I will use one year two year and 18 month fixed rate accounts depending on the length of the balance transfer period.
I will make monthly repayments from existing instant accesss accounts.