Beat the system at its own game!

Stoozing is a credit card market ‘slang’ phrase that’s been adopted into popular culture.

Stoozing refers to the practice of borrowing money using introductory offers on (usually) 0% on money transfer credit cards, and then investing the money in a high interest deposit account or ISA to make a theoretically zero risk and of  course FREE cash return for the duration of the 0% interest period.

The borrower (or stoozer) then pays the money back before the 0% interest period ends, and repeats the process with the best money transfer credit card offer available at the time. Some commentators say stoozing is a form of arbitrage.

The process is totally legal, and there are some credit cards out there with 0% on money transfer offers, but with deposit account interest rates at their lowest consistent level for 50 years, the opportunity to make money out of stoozing is currently very limited.

The credit card issuers have also introduced fees of 3% to 4% on each money transfer from a new card offer which has blunted the effectiveness of stoozing.

Stoozing isn’t for everyone. You need to have a high credit score to get offered the best money transfer rates, and there’s a lot of administration and form filling needed to maximise your stoozing return. Timing of applications and moving money is critical, and if you get it wrong you can end up paying interest and charges that could easily outweigh the potential financial profit of the stooze.

If the concept of stoozing appeals to you, you might want to try the best cash back credit cards. If you are a regular user of credit cards, and can settle your balance every month, you could be much better off.

When the financial markets return to normal levels, its likely stoozing will be back on the agenda, and if you sign up for our email alerts, as soon as it’s worthwhile looking at again, we’ll let you know!

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