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Stoozing - make free cash

Earn interest from 0% credit cards

Stoozing's the art of making money by cleverly manipulating credit cards - it was really popular in the early 2000s only to die in the wake of the credit crunch as great deals became hard to find. But now, with some of the best 0% spending deals we've ever seen and bank accounts paying interest of up to 5%, stoozing's BACK!

Here's our step-by-step guide showing exactly how you do it, the best 0% spending cards and interest-paying bank or savings accounts to use, and what to watch out for.

The premise - borrow free, earn £100s!

Stoozing's the art of making money out of 0% deals. It became the vogue of money nerds when credit card companies first launched 0% deals.

Martin broadcasted the first set strategy for it in around it in 2000, and it works like this: Lots of cards lend new customers money at 0% (see options here). By grabbing this cash then saving it at as high a rate of interest as possible, you're earning interest on money they've lent you for free.

In stoozing's heyday, the amounts people could get were huge, with the biggest stooze-pot we heard about being £80,000 of 0% credit card debt (multiple cards, continually rolling onto 0% deals) which saved that stoozer nearly £5,000 a year as the money was offset in his flexible mortgage.

We're not quite back to the heyday of stoozing but with the credit card market the hottest we've ever seen, with plenty of long 0% spending deals and bank accounts paying interest of up to 5%, stoozing's definitely back.

And so is the true poetry of stoozing - which is when one bank has a great deal for borrowing AND one for saving, so you can profit from its own cash. This is as rare as it is beautiful but you can now do it with Santander 123 bank account and credit card.

Warning: Stoozing is ONLY for those who are debt-free & financially savvy. If you're not, avoid it as mistakes can be costly. If you're looking for more than just 0% spending, or you've debts, see our Credit Cards page for full options.

Who can do this?

Though lucrative, this technique is tricky, and not suitable for everyone. If you decide to give it a go, read this article in full, and make sure you 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. Read the Best Balance Transfers guide.

  • Ensure you're on the ball
    Do it right and this is risk-free. Yet stoozing isn't for the forgetful, ill-disciplined or inattentive. If that's you, stop reading now, as getting this wrong costs.

  • Consider cashback instead
    If you're a little forgetful, or would just prefer a simpler way to make free cash, a more foolproof (but less lucrative) way to profit is simply using a cashback credit card and paying it off in full every month. For the current top picks, read the Best Cashback Cards guide, and see our Credit Cards page for more options.

How to stooze...

In a nutshell, the idea is to do your normal spending on an interest-free credit card, and let the dosh you'd normally be using build up in a savings account, earning interest. This is currently helped by the longest-ever interest-free spending card we've seen.

This requires discipline, and is absolutely NOT a way to spend more than you would have – it's a money-making recipe. So don't overspend and never breach the card's credit limit.

STEP 1: Get a card offering 0% on new purchases

The aim is to get the longest 0% spending deal you can and with possible added cashback rewards to boost your stoozing gains (don't confuse these cards with 0% balance transfers, which are for shifting debts).

Which cards'll accept you? The only way to find out is to apply, but that marks your credit file. So our Free 0% Purchases Eligibility Calculator shows your odds of getting each card, to minimise applications without hitting your file. All these cards are in it, except Tesco, which we can’t check for you.

The top 0% 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.


Longest ever 0% deal. Plus up to 3% cashback on spending, but £24/yr fee

Santander 123* - 23 months 0%

For MoneySaving poetry nothing beats getting the Santander 123* credit card and use it for stoozing with Santander 123 bank account (more on this below). Not only has it got a whopping 23-month 0% spending period, but it also offers up to 3% cashback on certain spending.

Need to knows
  • You earn 3% cashback on fuel & rail spending (max £9/mth), 2% in department stores & 1% in supermarkets. See a full review of the cashback you can get with Santander 123.
  • It has a £24 annual fee, although if you have a Santander 123 bank account it's refunded in the first year. See the Best Bank Accounts guide for full details on the 123 current account.
  • Once the 23 months is up you'll pay 12.7% interest on spending (16.5% representative APR, including the annual fee).
Eligibility Calculator
(MSE's free tool)
(at lender site)

Protect your credit score and check chances of getting card

Stats box
  • Spending length: 23 months 0%
  • Annual fee: £24 a year
  • Representative variable APR: 12.7% (16.5% incl. fee: Official APR Example)
  • Card issuer: Mastercard
  • Min income: £7,500
  • Min repay: Greater of 1% of balance plus interest or £5

Second longest 0% deal and you'll get the full 0% period if accepted

Clydesdale/Yorkshire* - 20 months 0%

This card from Clydesdale* is a top card as it offers the longest 0% without a fee. Plus if accepted you'll definitely get the full 20 months. But it doesn't offer additional perks, such as reward points, like the cards below. So if you can give up one month of 0% spending, then there are cards which could give you a little bit extra.

Need to knows
  • Yorkshire Bank* also offers the same 20 month 0% deal, as it is part of the same banking group (National Australia Group).
  • Make sure you fully clear the card by the end of the 20 months or you'll be charged 18.9% interest on any remaining balance.
Stats box
  • Spending length: 20 months 0%
  • Annual fee: n/a
  • Representative variable APR: 18.9% (Official APR Example)
  • Card issuer: Mastercard
  • Min income: n/a
  • Min repay: Greater of 1% of balance plus interest, or £5

Long 0% spending deal, but not everyone will get it

Halifax* - 20 months 0%

This Halifax* card also offers 20 months 0% on purchases, but only 51% of applicants have to get the advertised deal - the rest could get 16 months (worse, but still not a bad deal).

Need to knows
  • You can't apply for this card if you already have a Halifax card.
  • Poorer credit scorers may get 16 months instead of the full 20.
  • After 20 months, the interest jumps to 18.9% but poorer credit scorers might get 21.9% or 25.9%.
Eligibility Calculator
(MSE's free tool)
(at lender site)

Protect your credit score and check chances of getting card

Stats box
  • Spending length: 20 months 0%
  • Representative variable APR: 18.9% (See Official APR Examples)
  • Card issuer: Mastercard
  • Min income: N/A
  • Min repay: Greater of 1% of balance plus interest or £5

Good if you're a Tesco shopper, earn Tesco Clubcard points as you spend

Tesco* - 19 months 0%

The Tesco* Clubcard Credit Card gives 19 months 0% on new purchases. Plus, with this card, there's no chance of getting a worse 0% deal - you'll either get the full 19 months, or you'll be rejected. The card also rewards you with Tesco Clubcard points on spending.

Need to knows
  • You'll earn five points for every £4 spent in Tesco stores/fuel and 1 for every £4 spent elsewhere, which you can redeem for Tesco Clubcard Rewards.
  • After 19 months fully repay the card or you're charged 18.9% APR interest. Poorer credit scorers might get 21.9% or 25.9%.
Stats box
  • Spending length: 19 months 0%
  • Representative variable APR: 18.9% APR (See Official APR Examples)
  • Min income: £5,000
  • Card issuer: Mastercard
  • Min repay: Greater of 1% of balance plus interest or £25

Good if you're an M&S shopper, earn M&S points on spending

M&S - 19 months 0%

The M&S card also offers 19 months 0% on all spending, and is a good alternative if you can't get the cards above. Plus you'll earn M&S points on your spending, good if you like to shop there.

Need to knows
  • You'll earn 1 point for every £1 spent in M&S stores, and 1 point for every £2 spent elsewhere. These points are then converted into M&S vouchers every three months.
  • After 19 months, the interest jumps to 18.9%, so make sure you repay the card before the 0% period ends.
Eligibility Calculator
(MSE's free tool)
(at lender site)

Protect your credit score and check chances of getting card

Stats box
  • Spending length: 19 months 0%
  • Representative variable APR: 18.9% APR (See Official APR Examples)
  • Min income: N/A
  • Card issuer: Mastercard
  • Min repay: Greater of 1% of balance plus interest or £5

Don't get card protection insurance

Payment protection insurance is commonly sold with credit cards – the idea is it'll make some payments for you, usually for a year, if you are unable to (eg, if you lose your job).

When properly using a card for stoozing, there's no need to tick the box for this policy. It's unnecessary. If there's a problem, you can pay off this debt with the savings.

STEP 2: Follow the Golden Rules of Stoozing

Once accepted, use the card for everything you buy; replacing all credit card, debit card, cheque and cash spending up to the credit limit – though never withdraw cash as you're charged interest.

As all spending is on the credit card, cash isn't 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 – and this forms the stooze pot you can use to save.

However there are a few safety rules for doing this:

  • Don’t exceed your credit limit. That can result in you losing the 0% deal and hurting your credit score.

  • This isn’t an excuse to overspend. We’re just using it as a method to build up savings to match the stooze pot.

  • Only make the MINIMUM repayments. Don't try to repay this card in full. Just set up a direct debit to make the minimum monthly repayments, usually around 2% of the outstanding balance. Don't miss any payments, or you could lose the 0% promo offer, messing up your entire stooze.

  • Never withdraw cash on these cards. That isn’t at the cheap rate, you will pay interest even if you clear in full, and it can impact your credit score.

STEP 3: Earn max interest on the debts

You now have debts on the credit card, and approximately same amount in credit in your current account.

It’s time to maximise the interest you earn by moving the money into the highest interest savings vehicle possible. Don't wait for the cash to build up, just siphon it off into the savings account as soon as possible.

Just ensure it's easy access, so you can pay the card off whenever needed.

Where to save the cash

The top savings rates right now come from current accounts as banks are fighting to lure in new banking customers (bank accounts are big business for banks as once you're a customer they can cross-sell you a range of financial products).

Alternatively, 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 £15,000, and pay no tax on the interest earned. If you've used up your ISA allowance and don't want to use an interest-paying bank account, put the money in the best-paying Instant Access Savings account.

Anyone with a flexible or offset mortgage, where money can be deposited and taken out at will, should simply pay all the cash into that. The mortgage interest reduction outweighs even the best cash ISA returns.

  • Top paying current account

    If you're stoozing a larger amount, the Santander 123 account gives up to 3% interest if you have between £3,000 and £20,000, plus you can earn up to 3% cashback on your bills. You'll need to pay in at least £500/month and set up a minimum of two direct debits (plus pay the £2/mth account fee).

    To get the full benefit you may want to move all your cashback eligible bills over. And with this bank account you can make sweet poetry too, as you can combine it with Santander's 123 23-month 0% spending card. It's got a £24 annual fee but that's refunded in the first year if you have this Santander 123 bank account too.

    Another alternative is the TSB Classic Plus account which pays the highest interest on smaller amounts, paying 5% on the first £2,000 that’s in your account. You'll need to pay in £500 every month to hold the TSB account.

  • Top cash ISA

    The current open-to-all highest-paying cash ISA that allows access whenever you need it is the Online ISA from the Post Office. It pays 1.5% AER variable (including an 12mth 0.85% bonus). You can save from £100, plus it allow transfers in of previous years' ISAs. You can also make unlimited withdrawals from the account.

    For full details, plus all the alternatives, see the Top Cash ISAs guide.

  • Easy access savings account

    The highest-paying standard savings account is the Defined Access E-Saver account from Virgin Money, paying 1.41% AER. This is a clean rate account, meaning the rate can plummet at any moment, so you'll need to keep an eye on it, and ditch and transfer when it does.

The credit card debt is now at 0% and the savings hopefully at 3% or 5%. Now, diarise the date the 0% ends, and sit back while earning interest.

Simple reminders for card tarts!

Enter the date your 0% (or other intro rate) expires in the Tart Alert Tool and you'll be sent a text or e-mail reminder to ditch and switch. Of course, like everything else on this site, it's completely free.Try it now →

STEP 4: Increase your profit

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 you could shift the debt again to another cheap balance transfer to keep earning interest on the savings.

If you take the second option, always try to grab the balance transfer card with the lowest fee possible. Balance transfer fees used to be around 2-3%, but are now a lot lower so that can make it worthwhile - some even have no fees to transfer a balance. 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. dart board

Yet multiple, clustered applications, and high outstanding debts, even at 0%, will diminish your ability to get competitive credit, so always spread card applications out.

In stoozing's early days, some people got huge amounts at 0%. Now lending criteria is tighter, so it's best to start small and not overstretch yourself (read the Credit Scoring guide).

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.

To give an idea of how much you’d make, we’ve built a simple calculator. Unfortunately, this doesn't work on mobile, just on PCs and Macs, so email yourself this guide and check it out when you're able to view on a desktop computer.

IMPORTANT NOTE: The longer you take to build up the full amount of debt, the less accurate the figure below will be. Also, if you switch to a 0% balance transfer after the initial interest-free period, you'll need to take any one-off fee into account.

Amount Stoozed: £
(Building new simply spend debt? enter half max amount)

Credit Card Interest Rate %

How long for? months

Tax Band : No Tax Basic Rate Higher Rate
Savings Account Pre-Tax Interest Rate: %

A note for the curious: Where does ‘stoozing’ come from?

This isn't a fly-by-night system. Martin first broadcasted a strategy for this in early 2000, as 0% credit card interest rates began. Many who started back then now report £1,000s in total gains.

As the number of 0% cards increased, so did the number of people taking advantage. The commonly used name is 'stoozing', used to describe any technique to profit out of playing credit card companies' deals.

We gather a couple of years after the technique started, the term gained common usage in The Motley Fool website's forums, due to a contributor there called Stooz. Yet regardless of whether it's ‘free cash' or ‘stoozing', either way, hopefully it'll be cash in your pocket.