What is stoozing and how can it increase your money?

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Why not try the trick known as stoozing? (Photo: Getty Images)

If you have money to spare, higher interest rates are obviously good news. And even if you haven’t, thanks to a trick known as stoozing, those rates could still be a way to make some extra cash.

Stoozing involves borrowing at zero percent for a few years, usually via a credit card, and saving that money at a decent rate for the same period. Just before the interest-free offer ends, you move the money held in savings to clear the debt. Any interest earned during this period is profit.

For example, with the option to get 5.12% on up to £5,000 via the Barclays Blue Rewards Rainy Day Saver, it is possible to earn £256 over a year. Easy money!

But, of course, it’s not that simple. For starters, credit cards come with credit limits and you may only receive a relatively small amount. You might decide it’s not worth doing if you only get a grand or two.

The zero percent card type also makes a difference. If you want to store a lump sum, you will either need to transfer the balance of an existing credit card debt or use a money transfer card, which could incur transfer fees that will reduce profit margins.

It’s more likely that you’ll use a zero percent credit card for all your regular expenses and transfer the money you would have spent into an easy-to-access or regular savings account.

You’ll want to do this as soon as possible after spending, not only to maximize the time you earn interest, but also to make sure you don’t forget.


Start by using a zero percent spend credit card for all your regular expenses
Start by using a zero percent credit card for your daily expenses (Picture: Getty Images)

If you don’t transfer all the equivalent money, you risk losing track of how much you have to spend – and possibly end up doubling your spending.

And, of course, it’s essential that you have all the money you need to clear all of the debt at the end.

If you don’t, you’ll start paying what’s likely to be high interest on the remaining balance.

You can’t just ignore credit card debt until it’s all settled, because the minimum repayment will still be required.

Setting up a direct debit to do this automatically will help you avoid follow-up charges.

You also need to consider the potential impact on your credit report. The other lenders you apply to won’t know you’re sleeping and they’ll have the money available in savings.

They will just see big credit card debt. If you have critical credit applications on the horizon, especially mortgages, it’s probably advisable to avoid falling asleep altogether.

But if you follow the rules, you will find that this method will earn you more money than using a cashback credit card.

If you plan to stooze on daily expenses, you’ll need a zero percent shopping credit card.

The longest period available on the cards at the moment is two years, but watch out for the ones that say “until” as you could get a lot less.

It’s worth using a comparison site to check your eligibility across a wide range of cards before deciding which one to choose – you might even find some you’re pre-approved for.

If the odds are strong for the Barclaycard Platinum (up to 24 months), there is currently an additional £20 available when you sign up and spend £250. And if you apply through cashback sites Quidco Where topcashback there is an additional £19 refund.

Another cashback card from Topcashback is the Tesco shopping card. You’ll earn £25, even if it’s only up to 14 months.

And if you shop regularly at Sainsbury’s you’ll get a bonus of 500 Nectar Points on every £35 spent in the first two months (up to 5,000 points) via its card for up to 24 months.

But if you’re worried about getting a zero percent shorter term, then there’s 24 months guaranteed through M&S Bank, and you can earn points on your spending.


Andy’s Best Buys: 0% Credit Card Buying with Extras

If you plan to stooze on daily expenses, you’ll need a zero percent shopping credit card.

The longest period available on the cards at the moment is two years, but watch out for the ones that say “until” as you could get a lot less.

It’s worth using a comparison site to check your eligibility across a wide range of cards before deciding which one to choose – you might even find some you’re pre-approved for.

While the odds are strong for the Barclaycard Platinum (up to 24 months), there’s currently an extra £20 available when you sign up and spend £250. And if you apply through the Quidco or Topcashback cashback sites, you’ll get an extra £19 cashback.

Another cashback card from Topcashback is the Tesco Shopping Card. You’ll earn £25, even if it’s only up to 14 months.

And if you shop regularly at Sainsbury’s, you’ll get a bonus 500 Nectar Points on every £35 spent in the first two months (up to 5,000 points) via its card for up to 24 months.

But if you’re worried about getting a shorter term at 0%, then there’s 24 months guaranteed through M&S Bank, and you can earn points on your spending.

Barclaycard Platinum

0% up to 24 months

Extra £20 cashback when you spend £250 in the first 90 days (ends November 30)

M&S Bank Shopping More

0% for 24 months

M&S points on spending

Sainsbury’s Bank Dual 24 months

0% up to 24 months

Up to 5,000 bonus Nectar Points when shopping at Sainsbury’s

For more details on these and other credit cards, go to Be Clever With Your Cash.

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AFTER : How to check your credit rating and does checking lower it?

AFTER : Bank of England announces biggest interest rate hike in over 30 years

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