Stoozing Strategy: slow Versus fast stoozing
| Author: Clariman | Created: 12/10/2007 |
What is the best way to get started with stoozing? In this article we compare fast and slow stoozing and discuss how they each compare in terms of profit, risk and ease of use. Before we do that, we need to define what we mean by slow and fast stoozing.
Fast Stoozing
Fast stoozing exploits 0% balance transfer (BT) offers to move money from credit cards into a
savings account.
It is called "fast" stoozing because the BT mechanism is the quickest way of moving the
maximum amount from your card into a savings account (or stooz pot).
This means that the stoozer earns interest
on a larger stooz pot very quickly. In theory, a stoozer can move the entire credit limit in one
transaction, but some lenders have a maximum that can be moved by BT (usually 90% to 95% of the
credit limit).
When we talk about "stoozing" and don't qualify it as slow or fast, then we are
talking about fast stoozing.
Slow Stoozing
The key difference with slow stoozing is that the stoozer exploits 0% purchase offers rather than balance transfers. The stoozer uses the credit card for their normal monthly spending and slowly builds up a card balance. On receipt of the monthly credit card bill, he/she pays the minimum monthly payment and then makes a payment equivalent to the remaining card balance from the current account into the stooz pot.
Over the months, the balances on the card and in the stooz pot gradually increase, using more of the available credit. As you can see, it takes longer for the stoozer to build up the stooz pot than it does with fast stoozing. Some stoozers call this technique "Simply Spend" because it is based on purchasing rather than BTs.
Which is for you?
Let's look at stoozing based on 3 criteria: profitability, risk and ease of use.
Profitability
As a rule of thumb, fast stoozing is more profitable than slow stoozing because the stoozer starts earning interest on a large stooz pot balance early on. However, that needs to be offset against any BT fees that may be payable with fast stoozing.
Another factor is the spending profile of the slow stoozer. If the slow stoozer has major expenses early on in the card's offer period, then the stooz pot can be built up quickly, so it can be comparable with fast stoozing. To work out which is most profitable for you, plug some figures into our stoozing calculators: Stoozulator (for fast stoozing) and Slow Stoozing Calculator
Risk
The main risks from stoozing are the same for the slow and fast stoozer: missing a payment, being tempted to spend the stooz pot or damaging your credit rating. Beyond that, the fast stoozing route can be more complex if it involves routing money via another card to get it into a bank account and, with that complexity, there may be more risk. The additional risk of slow stoozing is that you need to keep a close eye on your spending to ensure that you do not exceed your credit limit.
Broadly speaking, the risks are equivalent. Having said that, many new stoozers feel more comfortable with the gradual approach of slow stoozing. This is a psychological issue, rather than a genuine practical one.
Ease of use
This is an interesting area, because many new stoozers think that the slow stoozing method is simpler, but many seasoned stoozers think that fast stoozing is simpler.
So who is right? Well, probably both groups are right in their own way. Slow stoozing feels more natural to the new stoozer because they are using a credit card in the normal way: making purchases. On the downside, the slow stoozer needs to work out how much money to move into the savings account each and every month and to net that off against the minimum payments. That is why many experienced stoozers consider fast stoozing easier.
With a fast stooze, you only move money into the savings account once during the life of the card. Of course, you still have to make minimum monthly payments and you may need to route the BT via an SBT card, but once that is all done it ticks along quite nicely.
Which should I choose?
There is no simple answer to the question because much of it comes down to how you feel as an individual. For many new stoozers, moving large sums of money around with fast stoozing may take a bit of nerve, but it is these large sums that drive the larger profits of the fast stoozer. As they say "You borrows your money and you takes your choice!"
What should I do next?
To get started with fast stoozing, follow these four steps
- Read our main stoozing guide
- Identify the best cards from our Balance Transfer cards table
- Work out your future profit for these cards using our fast stoozing calculator
- Return to our cards table to apply for the profitable card(s)
To get started with slow stoozing, follow these four steps
- Read our slow stoozing guide
- Identify the best cards from our Purchase cards table
- Work out your future profit for these cards using our slow stoozing calculator
- Return to our purchase cards tableto apply for the profitable card(s)
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