Simple Stoozing or use 1% Cashback Credit Card

edited 30 November -1 at 1:00AM in Stoozing: Free Cash from Credit Cards
4 replies 1.1K views
sva14sva14 Forumite
121 Posts

Hi,

Can some one tell me which would be better

1) 1% Cashback credit card
2) Do Simple Stoozing put the cash in savings account earning 4%.

The credit card only has 4 months on 0% to run.

I possiblty spend say £800 per month on the credit card.

Thanks
satish

Replies

  • ClarimanClariman Forumite
    1.5K Posts
    Part of the Furniture Combo Breaker
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    1% cashback would be better because of the short 0% period left. Cashback would earn you 1% of £3200 (4 x £800) i.e. £32. Plugging the figures into the Slow Stooz (Simple Spend) calculator says you would make £18.13 by stoozing it ....assuming you are a standard rate tax payer.

    Clariman
    Co-author/owner of the official stoozing website https://www.stoozing.com and Creator of the SOA & Snowball calculators.
  • sva14sva14 Forumite
    121 Posts
    Clariman wrote: »
    1% cashback would be better because of the short 0% period left. Cashback would earn you 1% of £3200 (4 x £800) i.e. £32. Plugging the figures into the Slow Stooz (Simple Spend) calculator says you would make £18.13 by stoozing it ....assuming you are a standard rate tax payer.

    Clariman


    Thanks for your comment. Yes I can see which is better now. Looks like I need a minimum of 6 months on 0% card to do simple spend more profitably.

    Also I assume getting cash out with credit car out of machines at 2% charge and assuming got 0% for 12 months is still worse off?

    Also the same applies to CC that charge 2% for BT?
  • MartinslovechildMartinslovechild Forumite
    1.6K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
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    satish98 wrote: »
    Thanks for your comment. Yes I can see which is better now. Looks like I need a minimum of 6 months on 0% card to do simple spend more profitably.

    Also I assume getting cash out with credit car out of machines at 2% charge and assuming got 0% for 12 months is still worse off?

    Also the same applies to CC that charge 2% for BT?
    NEVER EVER withdraw cash from a machine using a Credit Card unless the T&C's specifically state that the cash advance rate is 0%.

    Although you will find cards available which offer 0% on both purchases and BTs, this zero rate doesn't include cash advances - these are normally charged at some hideous rate on top of the 2% fee (anywhere up to 20% APR).

    Always read the T&C's.
    Mortgage Feb 2001 - £129,000
    Mortgage July 2007 - £0
    Original Mortgage Termination Date - Nov 2018
    Mortgage Interest saved - £63790.60
    ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)
  • sva14sva14 Forumite
    121 Posts
    NEVER EVER withdraw cash from a machine using a Credit Card unless the T&C's specifically state that the cash advance rate is 0%.

    Although you will find cards available which offer 0% on both purchases and BTs, this zero rate doesn't include cash advances - these are normally charged at some hideous rate on top of the 2% fee (anywhere up to 20% APR).

    Always read the T&C's.


    Thanks

    Been looking at what bills I can pay by credit card (To get further 1% cashback on CC) and got information on using Payppoint (Please confirm that they accept Credit card as payment ) to pay most household bills by credit card.

    Does anyone have any idea of how or if it is possible to pay mortgage payments, i am with alliance and leicester.
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