Does anyone have experience in Stoozing?

jroth222

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So I’ve been reading up on a technique known as Stoozing which is essentially taking advantage of long-term 0% credit cards and high-interest savings accounts.

After all of your bills have been paid, you move the remaining balance out of your current account and dump it all into a high interest savings account (First Direct are offering 5% for 12 months)

Anything you need to pay for for the rest of the month, you pay using your 0% credit card.

Every month, you pay the minimum amount to maintain the 0% rate and also keep as much money in the savings account.

When it comes to the end of the 0% term on your card (or you are close to maxing out the cap) you use the money you have been saving to pay it all off, however you will have accrued interest over this time, too.

Has anyone tried this or doing this? Also, I only have one credit card at the moment with a limit of £5500... this wouldn’t last for the whole year so I would need more than one credit card, does anyone have experience with owning more than one credit cards? And is there a personal credit limit you are allowed? If I have 5k with one card, will a different company give me another 5k card?
 
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Queen Jess

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I do already have more than one card, although low limits on both of them (they are for different purposes and since I went abroad once and one wouldn't work to pay for some reason, I like to have a spare for emergencies). There will be a limit depending on what they think you can afford in total across all cards as they do a credit check.

I thought about stoozing a couple of times and decided it wasn't worth the effort for a couple of hundred quid a year. The interest rates are so low at the moment, it is too much hassle. If you max out the first direct deal, you'll get about £90ish only (roughly 300 per month @ average of 2.5%).

You would need an enormous spend to make it worthwhile and I just don't spend that much! All the big things (mortgage, council tax etc) can't be on credit card.
 

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