Stoozing success

dealseeker

YorkshireBoy wrote:

doesn't being named as an additional cardholder preclude you from applying for your own card?

Don't think it does.

Principle card holder takes all the resonsibility for the card. Additional card holder just another way for that spend to build up on that account.

2nd cardholder can open account in their own right but will be 100% responsible for spend on that account.

Sound slike the other comments discount this as a sensible thing to do if you are in the stoozing game anyway.

Kantankrus_Mare

well i was going to mainly use card for weekly shop and for petrol for both our cars.

As hubby does shopping some weeks and we both put petrol in seemed sensible to have 2 cards?

Clariman

YorkshireBoy wrote:

Clariman, do you have an opinion on my earlier question?...doesn't being named as an additional cardholder preclude you from applying for your own card?

To be honest, I am not sure. My guess is that it probably wouldn't preclude you from getting your own card because, as an additional cardholder, you are not liable for any of the debt on your partner's card. All card issuers want to customers, so I think they would probably still consider an application on its own merits.

But, as others have said, why have an additional cardholder on a stoozing card the in the first place ? There is no point.

FWIW, I don't add my wife as an additional cardholder.

Clariman

Kantankrus_Mare

Clariman wrote:

Halifax One doesn't do SBTs, but is a good stoozing card for routing via an SBT card. As for additional card holders, I don't bother adding Mrs C to any of my stoozing credit cards. As others have said, there is no point in doing so because nobody should be putting any purchases on a stoozing card in the first place. However, lots of online applications seem to lead you along the way to asking for an additional card holder.

Clariman

Im a bit confused and seems I may need to go back to the drawing board with this stoozing lark?

I thought the idea was to put purchases on the 0% card whilst saving the money which would have been spent in a high interest account until 0% deal is up and then move to another 0 % if possible.

Maybe I have wrong end of the stick?

udydudy

Kantankrus_Mare wrote:

Im a bit confused and seems I may need to go back to the drawing board with this stoozing lark?

I thought the idea was to put purchases on the 0% card whilst saving the money which would have been spent in a high interest account until 0% deal is up and then move to another 0 % if possible.

Maybe I have wrong end of the stick?

The idea of stoozing is making money out of the Card Companies for a change instead of them making money out of us. Lots of stoozers on this board have multiple cards and hence can do BTs and SBTs very easily. For others like me last year when I got my first card with 12 months 0% BT & Purchases the best way to stooze as such was to do all my purchases on my card and put the money into a savings account. But this is a long process and one doesnt really make maximum money like when you SBT to your current acct on day 1.

Coz if you have a 5000 limit then if u SBT on day 1 the whole amount will start earning you money from day 1. Instead when you purchase n save then you will earn money only as you save which will reach 5000 only towardspart of the period. One way to speeden it up is to offer to pay your friends bills(Mobile, High Value purchses, etc) and take cash from them and put it into savings.

and every 3-4 months ask the card company for a limit increase so that you can stooze more.

Clariman

Kantankrus_Mare wrote:

Im a bit confused and seems I may need to go back to the drawing board with this stoozing lark?

I thought the idea was to put purchases on the 0% card whilst saving the money which would have been spent in a high interest account until 0% deal is up and then move to another 0 % if possible.

Maybe I have wrong end of the stick?

Hi Mare

As others have said, the idea behind stoozing is to 'borrow' money for free from credit card companies (i.e. on 0% intro deals) and save that money to earn interest. One of the critical things for the stoozer is finding a way to get the money into your savings account in the first place. There are 2 ways of doing this.

1. Use a 0% on purchases card to make purchases to gradually build up a stooz pot. This is what you are doing and is perfectly valid. The only downside is that it takes a while to build up the stooz pot but once you do, then you can BT it on to another card and keep it rolling.

2. Use a 0% on Balance Transfers card to immediately move the whole credit limit into a bank account to earn interest on the whole lot from day 1. This requires a card that can do a BT from a bank account. This is known as a Super Balance Transfer card (SBT card). These cards are few and far between.

If HBOS gives you 0% on both purchases and BTs then you can choose which method you want. The second will require an additional card to route the money via to a bank account e.g. the Virgin card. The former is easier but will earn you a lot less.

Example.

Let's assume you have a credit limit of £12,000 on a 0% purchase for 12 months card and you make purchases of £1000 per month. The average balance over the year will be approx £6,000 so you will earn about £300 before tax. If your purchases were lower than this, then your stooz profit would be even lower.

If you had a £12,000 limit on 0% BT card for 12 months, then you would have £12,000 in your stooz pot from day 1 and would earn about £600.... assuming you had a route to send it to your bank account.

Imagine you had a second credit card which you also got a £12,000 limit on. If it was 0% on purchases, you wouldn't be able to build up your stooz pot any faster unless you increased your spending (which would be daft). OTOH if you had another £12000 on BTs card, then you could wack that straight into your stooz pot and boost it to £24,000, this earning £1200 in one year before tax.

So there is nothing wrong with what you are doing. It is slow and steady. However, there are faster ways to build a stooz pot.

Clariman

Kantankrus_Mare

Thanks clariman that makes things much clearer but as Im new to the game I think ill stick to what I planned at least for a while till I find my feet and get my confidence.

Any extra is a bonus so we'll see how it goes. My hubby still thinks im crazy lolol

Thanks again for info!

pennies2pounds_3

Hi ppl . Ok have got a loan for £7500 for a car would it be a good idea for my wife (not me as I already have the virgin card) to apply for and get a virgin card and balance transfer the virgin credit limit which hopefully would be £7500 over to pay off the loan TIA.

YorkshireBoy

pennies2pounds wrote:

Hi ppl . Ok have got a loan for £7500 for a car would it be a good idea for my wife (not me as I already have the virgin card) to apply for and get a virgin card and balance transfer the virgin credit limit which hopefully would be £7500 over to pay off the loan TIA.

In principle it's a good idea, but several things to be aware of...

1. She may not get a good enough limit on the Virgin card - I was initially only offered 20% of my salary, despite having absolutely NO DEBT at the time. However, they did lift it on appeal.

2. The loan company might have some fees for early repayment.

3. With the Virgin £5 minimum payment, there may be temptation to spend the now abundant extra money you have each month ("original" loan repayment minus £5 must be £200+ ??).

4. You might not get another credit card, let alone a 0% card, in 9 months time, and then might find it hard to obtain a load with £7,460 on a credit card (if you mess up with 3. above).

5. If they give you more than you need, you still can't "spend" it on purchases as they attract 15.9% APR. Don't forget that the Virgin card is a BT card, with repayments going towards the lowest rate debt first, ie the 0% BT.

I would only recommend doing this if you make the same value repayments to Virgin as you did to the loan company, ie ignore the £5 minimum. Keep your noses clean with regard to paying on time etc, and set up a DD for a fixed amount, say £200 - but certainly no less than you were paying on the original loan. Have another BT card lined up 6 weeks before the Virgin 0% expiry date, and this time you need a smaller limit due to the £2K you've already paid off the Virgin card - hopefully!

A couple of years of discipline should see you make a massive dent in your debt. Mess around with it, and ignore my points above, and we might see you posting on the "debt-free wannabe" board!

Good luck.

mrsw

Thanks to all the advice of kind people here, I have just managed my first stooze. I now have 7K in my account courtesy of Virgin. The customer advisor I spoke to was very helpful, confirmed there is no BT fee, and went thro all the dates I need to know. She even offered to call me to confirm when the money had been transferred into my account. However, she did make it crystal clear that if I make a late payment, they will revoke my 0% offer immediately!

She also said that any further BTs will be chargeable. Is this true? I thought all BTs in the 0% period are free.