Stoozing first timer

eaustin

I'm new to this. I have been considering it for a while and am finally putting it into action. I'd just like some reassurance before I proceed futher.

I have just applied for an Egg Money credit card. I have a Woolwich Open Plan offset mortgage and at the moent no other credit cards. Do you apply for a credit limit or do they just assign you one? I have set up a direct debit on this card to clear any negative balance in full.

I assume that I wait for this card to arrive (it was approved online) and then I'm intending to apply for an Ulster Bank credit card with 6 months 0%. It is my understanding that I then apply to transfer (up to the maximum credit limit on the Egg Money card) from the Egg Money card to te Ulster Bank card. When this is paid I will transfer the money from the Egg card to my Woolwich account and reduce the amount of interest being charged.

On the Ulster card do i set this up with a minimum repayment for the 6 months at 0% and then put a note in my diary to repay the remaining balance on or before the 6 month anniversary of opening the account?

I'm sure to all you regular stoozers this is basic stuff, but before I take the plunge I'd really appreciate some reassurance that I'm on the right lines.

Cheers

Edward

CannyJock

eaustin wrote: »

I have just applied for an Egg Money credit card ... < snip > ... Do you apply for a credit limit or do they just assign you one? I have set up a direct debit on this card to clear any negative balance in full.

On the Egg Money card they'll assign you a credit limit, you won't need much on it though, I reduced my credit limit on the Egg Money down to £ 500 so it wasn't taking up any "available" credit from other card. Direct debit shouldn't do any harm, but shouldn't be necessary as account balance will always be nil or positive. Although, there has been a few comments made about making occasional use of your Egg Money card for small purchases and clearing it so that the card doesn't get deactivated, so you might have a good point here.

eaustin wrote: »

I have a Woolwich Open Plan offset mortgage and at the moment no other credit cards.

eaustin wrote: »

I assume that I wait for this card to arrive (it was approved online) and then I'm intending to apply for an Ulster Bank credit card with 6 months 0%. It is my understanding that I then apply to transfer (up to the maximum credit limit on the Egg Money card) from the Egg Money card to te Ulster Bank card. When this is paid I will transfer the money from the Egg card to my Woolwich account and reduce the amount of interest being charged.

Almost. The balance transfer from your Ulster card to your Egg card isn't affected by the credit limit on your Egg Money card. The credit limit only applies to credit balances, you'll have a "debit" balance, there's effectively no limit on how much of a positive balance you can have on the Egg Money card.

Once the funds show cleared, you can transfer from your Egg Money card direct to your Woolwich account.

eaustin wrote: »

On the Ulster card do i set this up with a minimum repayment for the 6 months at 0% and then put a note in my diary to repay the remaining balance on or before the 6 month anniversary of opening the account?

Yup, you got it. 6 month isn't a very long time though if you're being charged a transfer fee (i.e. 3% fee over a 6 month period is equivalent to 6% fee over a year). Look at the Virgin Money card, it's 0% for 15 months with a 2.98% fee. If you've not applied for the Ulster one, I'd probably go for the Virgin one instead.

Use the "tart reminder" tool that will send you an SMS 6 weeks before the end of your introductory period and put a note in your diary. Standard recommendation is to start the ball rolling on your balance transfer card 6 to 8 weeks before you need it just to be on the safe side.

Depending on your circumstances, you can have a few cards being stoozed at the same time to put even more into your offset account. For higher rate tax payers, offset is a great way to go, I've got my offset account up to my mortgage amount so I've effectively got a 0% mortgage, just paying back the capital

knights

CannyJock wrote: »

Yup, you got it. 6 month isn't a very long time though if you're being charged a transfer fee (i.e. 3% fee over a 6 month period is equivalent to 6% fee over a year).

You should find the Ulster Card is 6 months fee free as far as I am aware?

regards

CannyJock

knights wrote: »

You should find the Ulster Card is 6 months fee free as far as I am aware?

regards

Ahhh, gotcha. Already got 2 RBS cards so doubt I'd get a third, unless anyone knows different?

YorkshireBoy

CannyJock wrote: »

Ahhh, gotcha. Already got 2 RBS cards so doubt I'd get a third, unless anyone knows different?

4 or 5 is not uncommon.

CannyJock

YorkshireBoy wrote: »

4 or 5 is not uncommon.

Right, that's the Ulster Gold card in the bag for the next six months, up to 3 RBS cards now.