Spending on a stoozing card?

mad_rich

I have a Virgin Money credit card, which is my usual card for spending. I like it because it earns 0.75 Virgin Miles per £ and has zero commission on spending in Euros. I also have a very chunky credit limit.

They're offering me 18 months 0% Money Transfer for a 2.5% fee, which sounds great if I can stooze at 6%.

I am tempted to take around three quarters of my credit limit as a MT, and continue to use the card for my day to day spending. I'll have a DD for min payment, then pay manually each month the value of my spending. Am I right in thinking that won't cost me any interest? Because if I put £1k spending on my card, and make a £1k manual payment, they have to allocate it to the spending and not the MT?

Or is this madness?

WYSPECIAL

It will work but if you can get a 3.5% stooze profit why not just take that instead?
Go as high as you can with the MT, probably 95% of credit limit, and get another credit card for your day to day spending.

grumbler

WYSPECIAL said:

... if you can get a 3.5% stooze profit why not just take that instead?

Because MT costs 2.5% while spending costs nothing and yelds points?