Another way to Stooze?

RichyRich

Okay, I don't know if anyone else does this, or if it's been mentioned before (had a good look though) but I thought I'd share an interesting stooze method that I use with you.

I have a crapital one classic card. It's rubbish and I've had it years. Its interest rate is 29.9% or something daft but it has one excellent feature. It comes with a chequebook.

It's not the same chequebook you get with most credit cards, where they charge you up to 5% for writing the cheque, a higher rate and don't give you an interest free period. Obviously that would not be good for us.

In fact, the cheques are free to use (no fee or commission), and you get the same interest free period as with purchases. So.....

Write a cheque on your first billing day. When the bill comes, pay it off in full on the day it's due (3 w.d. previously via e-Banking directly from the account). In three working days you check the card's paid off and deposit another cheque into the account. This way the money is in the account 80-90% of the time, earning a decent rate (although not the best, obviously because you have to have an easy-in-easy-out account) without having to apply for 0% deals all the time.

It works.

If it's been mentioned before, I apologise. If it sounds like too much hassle, don't bother (but what are you doing stoozing?!?!?!). If I've given anyone another string to their proverbial stoozing bow, then it's made my day. I love ripping off banks.

Rich

Cerbera_2

I hope you don't mind RichyRich if I jump in here with a CC cheque question

Is there any real difference, with regards to Virgin, in an SBT and paying in a CC cheque into your current account?

They both have the 0% for nine months and 15.9% after and both attract the same handling fee.

Is there a difference or am I totally wrong here

YorkshireBoy

Cerbera wrote:

Is there any real difference, with regards to Virgin, in an SBT and paying in a CC cheque into your current account?

They both have the 0% for nine months and 15.9% after and both attract the same handling fee.

Is there a difference or am I totally wrong here

My "understanding" is there's no difference. This is based on my credit agreement and the website T&C's.

Your T&C's will be those on your credit agreement.

As always, do your own research.

homersimpson_3

what advantages does this system have over usual method of stoozing (i.e. take money from credit card at 0% and either pay (1) into account earning interest or (2) off flexible mortgage to reduce interest on mortgage). thanks

Dagobert

RichyRich wrote:

I have a crapital one classic card. ... it has one excellent feature. It comes with a chequebook.

Did they give you a reasonable credit limit?
I presume you don't use it for purchases?

RichyRich

My credit limit is rubbish - £400. But I'm a student and only earn circa £6000 when I can fit it in. But a Capital One Platinum card may also have the same benefit. If you earnt enough and had a good enough score you'd get a decent limit on that. Have a look on the web site or call them to see if you get the same cheque facility.

I absolutely do not use it for purchases.

Rich

Cerbera_2

YorkshireBoy wrote:

My "understanding" is there's no difference. This is based on my credit agreement and the website T&C's.

Thanks YorkshireBoy, this is what I thought but had to make sure

I got seriously burnt with CC cheques when I first ventured into the world of credit and have been cautious of them since.

YorkshireBoy

homersimpson wrote:

what advantages does this system have over usual method of stoozing (i.e. take money from credit card at 0% and either pay (1) into account earning interest or (2) off flexible mortgage to reduce interest on mortgage). thanks

Without being disrespectful to the OP, it's main advantage is that it allows people who otherwise can't get (for whatever reason be it salary, credit history, existing debt, etc) 0% cards, to undertake stoozing activities.

It also allows someone carrying a small agreed overdraft to minimise the debit interest applied to the account each month (by returning the account to "zero" for all but 5 or 6 days a month). However, this method requires real discipline as one slip up means 29.9% APR.

tiger

how come i got capital one classic for ages and nevergot one of these cheque books?
do you request it or how do u get? richyrich if u dont mind

RichyRich

No offence taken - it is, however, in my opinion, an addition to your stoozing armoury rather than an "instead of". The best bit is that it never runs out unlike 0% deals which you have to keep switching, etc. In this case you can just keep the same card for ever. Of course use other methods as well, but it's just one more string to your bow (and why not cream ever drop from them that you can, eh?)

I just got sent some cheques - but if you ring them up or send them an e-message they might send you some, or I may have been in a pilot or something at some stage and they just keep piling them on me.

Rich

Milarky

What about 'balance transfers'? How does Capital describe the transaction of writing a cheque on your statement?

[Cahoot do interest-free period balance transfers that work just like this - you won't pay interest - but only if you can direct debit the full amount on the statement by the due date, of course. At least on amounts upto £400 the cost of slipping up is more restricted than on a much more generous credit limit]