Revenge is sweet, and you can get it! This is a full step by step guide to ‘stoozing' - legally making risk free cash by cleverly manipulating credit cards. The gains can be £100s or £1,000s; to help you work it out there’s also an easy to use Stoozing Calculator.
In This Guide
The premise in a nutshell
Scores of cards lend new customers money at 0%. Borrow this money and then save it at as high a rate of interest as possible. Now you're earning interest on money they've lent you for free.
Who can do this?
Though lucrative, this technique is tricky, and not suitable for everyone. Plus if you do decide to give it a go, read this article in full, and make sure you totally understand the process, as mistakes can have a high cost.
Be credit card debt-free
Only use this technique if you don't have any credit card debts and have a decent credit score. Those who already have debts on plastic should use all available new credit to reduce the interest on current debt. Read the Best Balance Transfers article.
Ensure you're on the ball
Do it right and this is risk free. Yet stoozing isn't for the forgetful, undisciplined or inattentive. If that's you, stop reading now, as getting this wrong costs. Instead a less lucrative, but fool-proof, way to profit is simply using a cashback credit card, and paying it off in full every month (See Best Cashback Cards article).
STEP 1: Choose your method
There are usually three possible ways to do this, ranging from easy to pretty tricky, yet currently routes 2 and 3 are impossible and hard to do, respectively. They're briefly explained here, but the rest of the article below focuses on the first 'Simply Spend' technique.
'Simply Spend': The easiest way
By far the easiest to do and understand is the 'Simply Spend' method, which just involves moving your normal spending to a credit card.
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'Super Balance Transfer': Most powerful, but limited
The 'Super Balance Transfer' method, is the quickest way to make cash, the big problem is it can only be used with a couple of cards.
However, currently the products available on the market aren't sufficient to make a profit. Please click to read full details of how this technique works, left here for archive purposes only.
Super Balance Transfer:
Move cash straight to the bank
The dream stoozing aim is to instantly move all the 0% debt into a savings account; so you’re earning interest on it immediately. A few cards which offer what we call a ‘super balance transfer’ facility, allow you to do this.
What is a super balance transfer?
When you do a normal balance transfer on a new card, it pays off your debts on another credit card for you, so you now owe the new card the money. Yet some allow 'money transfers' at the cheap balance transfer rate too, where money goes straight into your bank account (read full Super Balance Transfers guide).
Yet a huge warning's needed; many cards allow you to pay cash into your bank account; the difference is most charge a fortune for it. The key to a super balance transfer is that you’re charged the special promotional interest rate. So, to get this, never ever withdraw cash and never try and spend on the credit card. Instead, just ask the card provider to...
"Do a balance transfer to my current account"
This way you'll get the cheap balance transfer deal, and the cash will end up in your bank. For double surety, you can even explain exactly what you think will happen, and get them to confirm it. Don't use the term "super balance transfer" as that's a term I've coined and unless they use this site the customer service rep won't have heard of it.
Also, it's crucial you set up a direct debit to make AT LEAST the Minimum Repayment each month; if not you’ll lose the special deal and pay the 15%+ APR on all debts. Though it's massively preferable to pay more than this, so the debt is cleared by the end of the intro deal.
What cards will let you do this?
Only cards from the MBNA family currently offer super balance transfers at a low interest rate.
You have two options: short term 0% offers that are cheaper over a short period, or a long term low rate which stays cheap until the balance is repaid.
- Virgin 0% for 14 months. Plus a 4% fee.
Currently, the Virgin* card offers 0% on 'super balance transfers' for 14 months for a one-off fee of 4% (higher than the standard 2.98% it charges for balance transfers). You can do the super balance transfer at any time within 60 days of opening the account.
Quick Stats. 0% length: 14 months. Fee: 4% APR: 18.6%. Minimum Income: N/A Min Repay: GREATER of £25 or £5 plus the interest Anecdotal Info: Credit Limits: Mid. Ease of Acceptance: Mid
- MBNA Platinum 0% 13 Months. Plus a 4% fee.
The MBNA Platinum* will give you 0% on these transactions too, for 13 months, for a 4% fee. Here, you can do the 0% transfer at any time within 90 days of account opening.
Quick Stats. 0% length: 13 Months. Fee: 4% APR: 15.9%. Minimum Income: N/A Min Repay: GREATER of £25 or £5 plus the interest Anecdotal Info: Credit Limits: Mid. Ease of Acceptance: Mid
Once you have the cash in the bank, move it to a top paying ISA or savings account to earn up to 4%; see Step 2: Time to earn cash. When the year-long 0% rate ends, you could have netted over £100; then either pay back the balance in full, or switch it to a normal balance transfer card, thus keeping the stoozed cash in your savings account.
To find out how much you'll make, use the Stoozing Calculator.
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'Card Trick': A complex back-up
The 'Card Trick' should be thought of as a back up route if you can't access the super balance transfer deals. It's tricky, complex and requires a really good credit score but does allow money to be quickly moved into a savings account from lots of different cards. Not for amateurs.
Click to read full details on how this technique works.
Back-up route: The Card Trick
There's another way to get a cheap lump sum into your bank account, but it's far more complex, plus you need to get two new pieces of plastic. It's worth considering if you already have all the cards used in the method above, meaning you can't access the cheap super balance transfer deals.
You must be ultra-careful - read the full explanation at least twice to ensure you understand it, as it's much easier to make a costly mistake. Also make sure you understand how balance transfers work first (never simply ‘withdraw cash' and put it in your bank account; you'd incur big fees and interest charges).
It's all about the Egg Money card
For this you need an Egg Money card (not to be confused with the standard Egg card), plus a cheap balance transfer card. However, it charges a £1 monthly fee (£12/year), which must be factored in.
Egg Money can both have money balance transferred to it, AND lets you pay cash directly into your bank account at no cost. This second feature enables it to be used as a ‘mule' card for shifting cash from a 0% deal into your savings account. Most cards either don’t permit this, or charge a fee and possibly interest for doing so.
What to do
Before using this technique, you also need a 0% card for balance transfers too. To make the best use of stoozing, you’ll need a good credit rating to ensure you can continue to get the right cards again and again. Plus you’ll need to be good with money, as if you fail to switch in time the cost shoots up. See full details of the top 0% credit cards.
Once you've got one, then use the Egg Money card to pay cash into your bank account. At this point, you will be in debt with Egg, so then use the 0% balance transfer card to pay off the Egg Money card. If you go for a card which charges a balance transfer fee, work how much you’ll pay and take it off the profit in the Stoozing Calculator to see how much you’ll really make.
This means the Egg Money card now has a zero balance, and you have money in your bank account equal to the amount of 0% debt on the balance transfer card, which can be moved to a high interest account.
Got that? Probably not so follow through the guide below…
EXAMPLE OF HOW TO DO THIS 0% Card 
Egg MoneyInitial Scenario
Cash wanted: £3,000
Savings account: £0
Egg Money: £0
0% balance transfer card: £0
Ask your Egg Money card to pay £3,000 into your bank account. Be aware that for a short period you will be in debt on the Egg card and accruing interest, so there is a risk of a cost if the payments don't get sorted quickly.
Once the £3,000 is in your current account, you can move it to a high interest, easy access bank account
Egg Money Savings AccountCurrent Scenario
Savings account: £3,000
Egg Money: £3,000 in debt
0% balance transfer card: £0Now we need to pay off the debt in your Egg Money account, so that you owe it to the credit card at 0%. This is simple, just do a balance transfer with the 0% card.
After this, you will have a zero balance on the Egg Money card, and owe the 0% card the full amount
Final Scenario:
Savings account: £3,000,
Egg Money: £0
0% balance transfer card: £3,000 in debt
STEP 2: Use a 0% for spending card
This is the easiest way to stooze, but still requires you to be disciplined. It is absolutely NOT a way to spend more than you would have anyway - it's a money making recipe. So don't overspend and never breach the card's credit limit.
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Get a card with a 0% offer for new purchases.
Many cards offer new customers short term 0% offers on all purchases (don't confuse this with 0% Balance Transfers, which are for shifted debts).
Once accepted, use the card for everything you buy; replacing all credit card, debit card, cheque and cash spending - though never for withdrawing cash as you'll be charged interest.
Only make minimum repayments.
Don't try to repay this card, just set up a Direct Debit to make the minimum monthly repayments. As all spending is on the credit card, cash isn't being withdrawn from your current account, allowing unspent wages to build up.
This means the debt on the credit card will be matched by extra cash in your current account - which can then be moved to a high interest savings account.
The top 'simply spend' cards
The most profitable plastic here are the cards where the longest 0% spending period is combined with the most lucrative rewards programme. Depending on your credit score, and the amount you spend, this can be done with multiple cards, but it's best to start at the top and work your way down this list.
The longest 0% deal.
13 months 0% on purchasesThe longest deal available is with Tesco's* Clubcard Credit Card, which gives a big 13 months interest free on new borrowing, followed by 16.9% APR.
Spending with this also earns you 1 Tesco Clubcard point per £4 you spend. If these are redeemed for Tesco's 'Clubcard Rewards' (and NOT in-store at Tesco), then they're worth about 4p each making this equivalent to a 1% cashback card. For full info on how this works and what you can get, read Tesco Clubcard Boosting.
If you already have a Tesco card, the joint longest 0% deals are from Virgin* and Barclaycard Platinum*, both offering 12 months interest free (then 18.9% and 16.9% APR respectively).
Quick Stats. 0% length: 12 months. Standard Rate: 16.9% APR. Minimum Income: N/A Min Repay: Greater of 3% or £5 Anecdotal Info: Credit Limits: Mid. Ease of Acceptance: Mid The best of the rest.
Up to 10 months 0% plus reward pointsA few cards also have very strong 0% purchases offerings, coupled with reward points when you spend, making them great stoozing options if you actually want the rewards on offer.
The AA* gives 10 months 0% on purchases, plus AA reward points, which can be redeemed for AA products, some days out and vouchers, or exchanged for cashback. You have to apply via comparison moneysupermarket (the link above takes you there).
It also gives 0% for a year on balance transfers with a 3% fee (see Balance Transfers for how it compares). After the 0%s end, the rates jump to 16.9% & 18.9% APR respectively, so either repay in full by then or shift to a new card.
Equal in length is Marks & Spencer's credit card, plus here you also earn loyalty points to spend in Marks and Spencer stores. Play.com's credit card gives 9 months 0% (then 16.9% APR), plus loyalty points, including 1500 Playpoints (worth £15) when you spend £150 in the first 90 days; read full details of this in Credit Card Freebies.
The AA . 0% length: 10 months. Standard Rate: 16.9% APR. Minimum Income: N/A Min Repay: Greater of 1% or £25 Anecdotal Info: Credit Limits: Mid. Ease of Acceptance: MidM&S . 0% length: 10 months. Standard Rate: 15.9% APR. Minimum Income: N/A Min Repay: Greater of 2.5% or £5 Anecdotal Info: Credit Limits: Mid. Ease of Acceptance: Mid Play. 0% length: 9 months. Standard Rate: 15.9% APR. Minimum Income: N/A Min Repay: Greater of £5 or 1%+interest Anecdotal Info: Credit Limits: Mid. Ease of Acceptance: Mid
STEP 3: Earn maximum interest on the debts
You now have debts on the credit card, and a corresponding amount in credit in your current account.
It’s time to maximize the interest you earn, by moving the money into the highest interest savings vehicle possible. Always ensure it's one giving you access to the cash whenever it's needed in case you have to pay off the credit card bill quickly.
If you used the 'simply spend' method to get the 0% debt, then don't wait for the cash to build up, siphon it off into the savings account as soon as possible.
Where to save the cash
To combine risk-free easy access and a high rate, use the top-paying tax-free Cash ISA. These allow every UK adult to save up to £5,100 a year, and pay no tax on the interest earned. If your ISA allowance is used up, put the money in the best paying Instant Access Savings account.
Anyone with a flexible or offset mortgage, where money can be deposited and then taken out at will, should simply pay all the cash into that. The mortgage interest reduction outweighs even the best cash ISA returns.
Top Cash ISA.
For alternatives and details read the top Cash ISA article, plus read Are Your Savings Safe? to see how your cash is protected in overseas banks.Savings Account.
For more details read the top Instant Access Savings article.
The credit card debt is now at 0% and the savings at hopefully over 3%. All you need do is diarise the date the 0% ends and sit back earning interest. Though there are a couple of things to watch for:
Don't get card protection insurance
There's no need to tick the box for this policy, it's unnecessary as, if a problem occurs, you can pay off this debt with the savings.
ALWAYS pay the min. monthly repayments
Set up a direct debit to pay the credit card's minimum monthly repayments, usually around 2-3% of the outstanding balance. Always remember, 0% interest doesn't mean nothing to repay.
STEP 4: Keep it up and increase the gain
When the end of the 0% period approaches, you can choose to simply pay off the debt with the savings and bag the gains, or shift the debt again to another cheap balance transfer to keep earning interest on the savings.
If you take the second option, always try and grab the balance transfer card with the lowest fee possible - sometimes even fees-free 0% deals are available. Check the current top low-fee balance transfer offers
Plus you can restart the whole scheme with another new card at the same time; it's possible to do this whole system with two, three or four cards consecutively.
Will it hit your credit score?
Most lenders' scoring systems aren't sophisticated enough to detect that you're playing this free cash gain. Yet multiple applications, especially at the same time, and high outstanding debts, even at 0%, will diminish your ability to get competitive credit, so the most important thing is to spread card applications out.
In the early days of stoozing, some people got huge amounts at 0% (the biggest reported was £80,000 – netting that stoozer nearly £5,000 a year as the money was off-set in his mortgage). Yet lending criteria has tightened and it's best to start small now and not overstretch yourself (read Credit Scoring article).
A note for the curious: Where does ‘Stoozing’ come from?
This isn't a fly-by-night system. Martin first broadcast a strategy for this in early 2000, as 0% credit card interest rates began. Many who started back then now report thousands in total gains.
As the number of 0% cards increased, so did the number of people taking advantage. The now commonly used name is ‘stoozing', used to describe any technique to profit out of playing credit card companies deals.
From what we can gather, a couple of years after the technique started, the term started to gain common usage in the discussion forums of ‘the Fool' website, due to a poster there called Stooz. Yet regardless of whether it's ‘free cash' or ‘stoozing' either way, hopefully it'll be cash in your pocket.
The Stoozing Calculator
To give an idea of how much you’d make, we’ve built a simple calculator. Tell it how much 0% debt you’re going to get, the interest your savings account pays (plus whether you’ll be taxed on it), and how long you plan to stooze for; then it’ll tell you what the likely profit is.
For anyone newly using the 'Simply Spend' method, halve the amount of the final debt you intend to have for a decent estimate (see below for more details).
Guide to using the calculator
To keep the calculator user-friendly, a few assumptions have been made. Some may affect how you should use the calculator to get the right result for you.
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New ‘Simply Spend’ debts.
Anyone building up debt to stooze gradually with the ‘Simply Spend’ method won’t get accurate answers by entering a lump sum in the calculator. Instead, enter half the maximum debt you intend to build upount of debt; it’ll give a close estimate of what you’ll make.
Anyone with existing ‘Simply Spend’ debt can use the calculator normally.
Balance transfer fee.
Some 0% cards charge a fee for balance transferring, which you may need to do at the end of year one (though you should try to get cards that charge as low a fee as possible - or none at all).
The calculator doesn’t factor these in, so if you paid a fee, subtract it from the results to get your real stoozing profit.
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