Stoozing vs Cashback

petemoran53

Hi,

Read a lot on this site about the concept of stoozing and also about credit cards with cashback.

My situation is I am luckily debt free with a decent salary coming in, I spend majority of outgoings on credit card (although bills I pay by direct debit to my account for convenience).

So in my circumstance I get confused, is it better to get a 0% credit card and 'stooze' or to get a credit card with a better cashback (I just got the latest AMEX Platinum)' ? or a combination of both ?

I would love to be able to take advantage of paying my bills (gas, electricity, phone etc) through credit card but I like the convenience of paying by direct debit... any ideas ?

Bisoy

Actually you could do both believe it or not and benefit from it.

You can have a cashback card and use it regularly on all you purchases. I believe top card on the market is AMEX platinum and Egg money not bad as well( but an excellent card for stoozing.)

Then you could either slow stooz or do advance stoozing. If you have a look at this site you may find it very hepful: https://www.stoozing.com. good luck.

emma396

if u didn't have card with both, which is better?

CannyJock

Cash back is "instant" but big %'s are only for first 3 months, then drops to 1% on most.

Assuming you spend or stooze £ 500 per month, on cashback you get 5% for 3 months, then 1% after that and clear balance each month to avoid interest charges, on stoozing you repay 3% per month and bank the rest at 6.4% and pay 20% tax.

By my calcs (net gain over 12 months (no table sorry!)):

Cashback £ 25.00 £ 50.00 £ 75.00 £ 80.00 £ 85.00 £ 90.00 £ 95.00 £ 100.00 £ 105.00 £ 110.00 £ 115.00 £ 120.00
Stooze £ 2.08 £ 6.26 £ 12.41 £ 20.49 £ 30.44 £ 42.22 £ 55.78 £ 71.07 £ 88.05 £ 106.67 £ 126.90 £ 148.69

So initially you're better of with cashback but at end of day you're better of stoozing - stooze pot builds up while cash back is being repaid so gain is only on a single month's spending.

You could spend for first 3 months then stooze after that maybe - from what I can see so long as you don't cancel your Amex card you still get your money on the first 3 months so long as you keep the card for a year even if you don't use it after the 3 months.

Anyone got a different model?