Squeezing out interest using zero percent (on purchases) credit cards

aaj123

Think many would know this already but with interest rates having risen to where they are, it makes very good sense to make full use of zero percent purchases offers on credit cards and stash much of your purchases amount into high interest savings accounts until the end of the offer. 

Although such CC offers have been around for long, it's only now that they easily beat even the best cashback cards like Amex as the interest you gain by deferring payment is much greater than say Amex's 1.25% cashback.

eskbanker

Doing this is known as 'stoozing', and there's a dedicated board for it at https://forums.moneysavingexpert.com/categories/stoozing-free-cash-from-credit-cards

https://www.moneysavingexpert.com/credit-cards/stooze-cash-credit-cards/

Wheres_My_Cashback

aaj123 said:

Think many would know this already but with interest rates having risen to where they are, it makes very good sense to make full use of zero percent purchases offers on credit cards and stash much of your purchases amount into high interest savings accounts until the end of the offer. 

Although such CC offers have been around for long, it's only now that they easily beat even the best cashback cards like Amex as the interest you gain by deferring payment is much greater than say Amex's 1.25% cashback.

Stoozing is still viable, but for minimal gains compared to what used to be 25 years ago when you could make thousands per year. Mule cards such as Egg were commonly used to transfer cash from cards or cards which permitted money transfers, but in the good old days there were no such things as BT fees.
Of course, you can still get the odd BT fee free card, I took one out last month to continue stoozing £10k.

The good old days of applying for 5-10 different cards all within an hour, getting £100K or more to stooze at 5-10%, but then the CRAs didn't process live applications so the card companies were always a step behind.
You risked temporarily screwing your credit rating, but soon got it back.

Things have changed massively.

housebuyer143

I'm stoozing about £30k and make over 4% on it, so I'm happy with it. I've been doing this for years but it's only really paying off in the last year 😁