question on how to start stoozing. [please help]

zimsabre

ok ive been reading and reading and reading.. i just want to see if i have this right.

get a cc with 0% offer or a few.. (£10000) in total.

0% balance transfer that £10000 to my egg card.

move the £10000 to my Egg savings account, or can i move it from my egg card in to ANY saver account i have with any bank? and is there a fee for that?

would i need to set up the minimum payments for the 12months im stoozing?
or could i leave the 0% cc in debit till the end of the 0% offer and pay it off in one go from the egg saver account and keeping the earning's?

then apply for more 0% cc's and start over? (this is the part i dont get or is that exactly what happens)

andthe whole cc 0% (12 months etc..) dose that mean they are NOT charging interest for that period?

i have a good credit rating and never had a cc befor.

what i dont understand is why they would just give you the money or is it a case of them not knowing what your doing with the money or even care aslong as you pay back.

what happens if the cc company ask you whay your doing with the money? do you tell them your stoozing? if that happens any they wont do the 0%transfer to the egg card what can you do with the limit on that cc?






the other question i wanted to ask was... can you take out a lone chuck it in to an isa then just pay it off after 12 months (im guessing not as lone %'s are high) ?

oldfella

never had a cc befor.

---

the credit limit you get is likely to be too low to make stoozing worthwhile

dhassen

Sorry yea but I was thinking..... how can you have a good credit rating if you've never had a CC before? What makes you think it's good?

zimsabre

i though as much, but you have to start somewhere i guess even if i get a limit of £3000 thats £141 for doing nothing? on the egg saver account. or more on an egg ISA, and if i got accepted for a few cards.. could mount up?

zimsabre

dhassen wrote: »

Sorry yea but I was thinking..... how can you have a good credit rating if you've never had a CC before? What makes you think it's good?

ive had an over draft on a normal account for 4 years now :S sorry guys im just trying to learn here not looking to be told off lol

dhassen

lol you're hardly being told off.....

You probably didnt realise, you will need to have some credit history to get a good credit rating, such as having a credit card or loan that you've managed well over a period of time.

But yea go for it, get what you can

zimsabre

well you got to start somewhere, ive got my first cc (only £800) guess im gona stooze that and try build a credit rating =]

CannyJock

Welcome to the world of stoozing, read the articles and forums here and on www.stoozing.com - lots of good advice around.

zimsabre wrote: »

get a cc with 0% offer or a few.. (£10000) in total.
0% balance transfer that £10000 to my egg card.
move the £10000 to my Egg savings account, or can i move it from my egg card in to ANY saver account i have with any bank? and is there a fee for that?

The maximum you can BT from your card is normally around 95% of your credit limit, always worth remembering when you're working out your profit on the stoozing calculator.

Keep the balance transfers out of the Egg Money card less than £ 10K, if it's 10K or more it seems to trigger a security check which isn't an issue but does delay things a bit and you're obviously trying to maximise your interest and minimise your hassle

You can move money out of the Egg Money account without any fees, putting it via a Egg Savings account isn't necessary, but can be useful if you're trying to build your Egg Money cashback - other posts on this topic on the forums.

Kaupthing Edge is where I have most of my stoozed funds, currently offering 6.5%.

zimsabre wrote: »

would i need to set up the minimum payments for the 12months im stoozing?
or could i leave the 0% cc in debit till the end of the 0% offer and pay it off in one go from the egg saver account and keeping the earning's?

Always setup a direct debit to make the minimum repayments. You do this when you call to activate your card and confirm the balance transfer details. Also ask them to set your statement date to "yesterday" - this is a top tip from Yorkshire Boy to maximise the time before you need to make your first direct debit payment. If you don't make the minimum payments you'll incur non-payment charges and you'll lose the 0% offer.

zimsabre wrote: »

then apply for more 0% cc's and start over? (this is the part i dont get or is that exactly what happens)

Each application you make affects your credit score, so you need to plan your cards with a bit of thought as you build up your stooze deck. You need an Egg Money card for cards that don't allow a super balance transfer (SBT). MBNA backed cards seem to offer good credit limits and have the SBT facility. Full list of card issuers on the stoozing site.

zimsabre wrote: »

andthe whole cc 0% (12 months etc..) dose that mean they are NOT charging interest for that period?

They don't charge interest provided you don't miss a repayment, but most do charge a BT fee around 3%. If you're using a 0% purchase card, they make a merchant fee around 2.5% each time you spend so they make money that way too.

zimsabre wrote: »

i have a good credit rating and never had a cc before

Without a history of well-managed debt you won't have the highest credit rating, but used carefully the stoozing will build up a picture over a period of time that you can manage your debts without putting the card companies at risk.

zimsabre wrote: »

what i dont understand is why they would just give you the money or is it a case of them not knowing what your doing with the money or even care aslong as you pay back.

They only loan you the money For every person who stoozes, there are another dozen (or 100?) people with genuine debt. They basically hope you run up a balance and then aren't able to pay it back before they charge you interest - the other trick they do is try and get you to spend on the card that you do a BT on where the BT is 0% for 12 months but the purchase is 0% for only 6 months. If they catch you with the different 0% periods then they get to charge you interest so safest way is to make sure you never spend on the card you did a BT on.

zimsabre wrote: »

what happens if the cc company ask you what your doing with the money? do you tell them your stoozing? if that happens any they wont do the 0%transfer to the egg card what can you do with the limit on that cc?

You're using it to help sort out your personal finances. There's no reason for them to ask, and if they do then you give a politicians answer For example, I'm about to embark on a large extension and I'm sorting out my finances for that.

zimsabre wrote: »

the other question i wanted to ask was... can you take out a lone chuck it in to an isa then just pay it off after 12 months (im guessing not as loan %'s are high) ?

If you find a loan offering a % lower than 5.2% (6.5% after basic rate tax) then let me know and I'll be applying for it quicker than you can say "always read the small print".

zimsabre

cannyjock that answered every single question! wow thanks =] so basicly its getting hold of cash for 0% intrest and exploiting it, one other this i wanted to know was ive got an £800 cc and would like to build up a decent credit record.. what should i do?

long shot.. anyone thought of other countrys? i mean gettign hold of a lone in another country with a low %? i was just thinking that because im originaly from zimbabwe, im sure having dual nationality might help in finding a lender. im goign to look in to lones and getting hold of credit cards in "southern africa" where im sure this can be done with alot less "small print".

CannyJock

Credit history outside the UK won't benefit your credit rating inside the UK as far as I know.

Separate thought, but have you checked your credit report and gone through the steps in Martin's article on how to improve your credit rating?