Grow your StoozPot by exploiting lucky breaks!
| Author: Clariman | Updated: 21/04/2008 |
One of the challenges of stoozing is learning how to balance the growth of your stooz pot against the risk of damaging your credit rating by applying for too many cards. In fact, for many of us, this is the most interesting bit of stoozing as we pit our wits against the credit card industry. It is a game of strategy and of judgment with a little bit of luck thrown in. This article explains how you can exploit that luck, to grow your stooz pot beyond its current size. Keeping an eye out for lucky breaks and being able to exploit them has always been a good stoozing skill to have, but with the current credit crunch it has become even more important. In this article we tell you what to look out for.
Extension to the introductory Balance Transfer period
When the introductory 0% Balance Transfer period on your credit card comes to an end, you have to apply for another card simply to maintain your stooz pot at the same level, thus incurring a credit check. However, if you can negotiate an extension to the introductory 0% balance transfer period on your existing card, then you can get an additional 6 months stoozing from the same card issuer without incurring another credit check. You then have the choice of leaving your credit file with one less check against it (so that you have a better chance of getting more credit in the future) or you can use that credit check to apply for another card, thus growing your stooz pot with minimal impact on your credit score!
Not all credit card issuers will grant an extension, but experience has shown that MBNA platinum+ (and their sub-brands e.g. Virgin Money and Virgin Atlantic) and LTSB often do. To learn how to maximise your chances of getting an extension to your 0% deal, read our How to get an Extension article
Exploiting fee free days
All but a handful of lenders now charge balance transfer fees which means that it is important to use sites like this to seek out the best deals available and to check a deal's profitability. However, in the last year, MBNA have emailed borrowers more than once to announce fee-free Balance Transfers for a very limited period (usually just on one specific day). These can be a great way to increase your stoozing profitability or to replenish a Stooz Pot that has been depleted by minimum monthly payments.
Exploiting Anniversary Offers
Some cards (such as the Egg Visa Card) have anniversary offers where they give you an additional period during which to do a 0% Balance Transfer, 12 months after opening the account. This is a great way to get further stoozing time without an additional credit check. However, you do need to make sure that the anniversary offer is still profitable. Use our Stoozing Calculator to check the likely profit before using an anniversary offer.
Requesting a Credit Limit Increase
A very simple way to increase you stooz pot is to ask for a credit limit increase on an existing card, although it can result in another credit check. Your first opportunity to request an increase is when you activate your credit card. Not all lenders will consider it, but some do, so no harm in asking the question. Once you have activated your card, then most card issuers will want to see how you operate your account over a period of months before they will consider an increase, so if your introductory period is 6 months you are unlikely to negotiate an increase and be able to use it within that time period. However, if you have a card with an introductory period of 12 months or more, you will have the opportunity to have a limit increase considered and to be able to exploit it.
The other time when a credit limit increase can be used is when you have a card with an anniversary offer (see above). By their very nature, anniversary cards will have had 12 months of usage before you get the chance to do another 0% BT. When your anniversary period approaches, why not ask for a credit limit increase!
Exploit the relationship with your bank
When applying for a new current account, your bank may offer a credit card as part of the 'package'. If you apply for the card at the same time as the current account, then it may appear on your credit history as a single "application type: current account" search rather than a credit search.
You may also be able to exploit the relationship with your existing bank by asking if they would offer a credit card. Halifax has been known to offer "pre-approved" credit cards without a credit check, to some customers. If you get offered a "pre-approved" credit card, make sure you ask whether it really is already approved and whether it will involve an external credit check.
Transfer a credit limit between cards
Some card issuers (notably MBNA) will let you transfer credit limits between cards that they operate. For example, if you are fortunate enough to have 2 MBNA cards that overlap each other and you close one at the end of its introductory period, MBNA may let you transfer the credit limit from the closed card to the other one. This can be a very effective way of keeping your MBNA stoozed money even after the card has closed. Another variation of this is closing one MBNA card and opening another card (e.g. Virgin ) shortly afterwards. If your Virgin credit limit is lower, call MBNA and point out that you used to have a higher limit with your other MBNA card and they may give you the same limit (or aggregate of the two) on the newer Virgin card. Although this technique does not prevent a credit check, it does ensure that you maximise your stoozing credit limits.
Close a card and then Apply Again!
Most credit card companies will treat you as a new customer after 6 to 8 months and offer you a 0% introductory period at that time. However, there are some companies who treat you as a new customer almost immediately (e.g. Capital One). Although this does not prevent a credit check, it can be worth exploiting particularly when a company like Capital One brings out one of its long Balance Transfer offers.
Moving to a new card with an existing lender
Sometimes a lender will allow you to close one card and then let you re-apply or upgrade to another one of their cards with an introductory offer. Halifax Bank of Scotland did this a few years ago where they allowed existing customers to 'upgrade' from their old Halifax or Bank of Scotland credit cards to their new One card, complete with its long introductory 0% rate. This allowed customers to benefit from a new 0% period without a credit check. Other examples have included card issuers who let customers move from their Visa card to their Mastercard or vice versa.
Companies that let you hold more than one card at the same time
MBNA used to happily let customers have 2 or 3 MBNA cards at the same time. Although they have cut back on this, they do seem to allow it from time to time, although it does involve credit checks for each card.
Egg Visa lets
card holders apply for the
Egg Money (Mastercard) without having to incur an additional credit
check.
HSBC
also seems to allow customers to have
Marks & Spencers cards too,
even though they operate them both.
Cards that let you specify household income rather than salary
Many credit card application forms ask for your salary, but some ask for your income. If the latter is the case, do not forget to include interest earned on savings accounts, part-time earnings, investment returns, family allowance, other state benefits etc. Some also ask for "household income" which can be particularly useful for applying for stoozing cards where you or your partner do not work or only work part time.
As you can see, there are lots of things to look out for which can help you grow your stooz pot. And, if you are fortunate to get two lucky breaks at the same time, it can make a great boost to your stoozing. The author has had two lucky breaks occur at the same time on two separate occasions, which has allowed his stooz pot to exceed £80,000 and £90,000 respectively. Even in the current climate the author has used two repeat deals to get a Stooz pot of £75,000.
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