Is this worth it?

Towen_2

Idea, Don't know if this has been suggest before but...

Suppose you have a 0% BT card (no fee, but not SBT card) which charges interest on purchases and a cash back card. Is it worth purchasing on the Cash Back card and then transferring the balance before the payment due date. That way you get the rewards on the purchase, aviod the high interest if you had purchased on the BT card and still get to stooze your spending money!

If you spend £1,000 a month with 1% cash back, that £10 back on rewards and £40 a month on stoozing rather than paying of the balance; an extra £50 a month. That's got to be worth it!!!

Or have it missed someting here?

Clariman

You could do as you suggested, but it means that you would have to do a Balance Transfer every month and you would have to get your timing dead right. It would be easy to mistime a BT and get hit with interest charges. You would also need to ensure that the 0% BT card did not charge a fee (as I think you acknowledge).

I'm not sure where your £40 a month stoozing figure comes from. For each £1000 that you BT'ed each month you would earn about £4.17 in interest before tax. So after month 1 you would earn £4.17, month 2 you would earn £8.34 etc.

If you don't have an SBT card, that would be an OK way to gradually build up a stooz pot. An alternative way would be to get a 0% on Purchases card and do it that way.

My approach is that I have separate stoozing and cashback cards. The cashback ones I regard as spending cards and the stoozing ones just get whacked up to the max with SBTs to a bank account.

Clariman

grumbler

As Clariman sad you can do this if BTs are free. To avoid making a lot of BTs you can make one-off BT at the beginning and then gradually spend positive balance on the cashback card. I did this with Amex and Conran cards.

See also 'Cards for purchasing only - Sainsburys & Conran Card thoughts? ' thread.

Towen_2

Clariman - yeah I see your point -the £40 is an annualised (i.e. you get it recurring every month) but in my excitment I forgot and put monthy.

Grumbler - Good point on the cashback, but I thought CC compaines don't like you have large positve balances?

Anyway, betweeen the two of you my idea look pretty stupid!

Oh well - back to the drawing board!

grumbler

Towen wrote:

...I thought CC compaines don't like you have large positve balances?...

The only thing they don'l like is when you ask them to send you a cheque (normal one, not CC cheque!) or to transfer positive balance to your current account...

Towen_2

Just trying to think of ways to stay one step ahead of the CC compaines as they update their T&Cs - fromk what I've read on here SBTs are becoming a rare card from those new to stoozing, and I personally have started yet!