Introduction to Stoozing
How do I earn money from credit cards?
There are two ways to make money from credit cards : cashback and stoozing. This introduction gives a brief explanation of each technique.
Cashback
This is where the credit card provider will pay you a small sum ('cashback') for each purchase using your card: typically 0.25% to 1% of each purchase. Cashback is paid out annually, either by crediting your account or by sending you a cheque. Typical cashback earnings would be in the region of £50 to £200 per annum but more is certainly possible. Cashback is usually tax-free because it is treated as a reimbursement of your spending rather than income.
What Next?
Click here if you want to choose a Cashback Card now
Click here to read our full guide to earning money from cashback
Stoozing
Stoozing is a way of making money by exploiting credit cards which have an
introductory period during which no interest is charged. There is fierce competition
in the credit card industry, so many lenders have
introductory periods of between 3 and 18 months
during which they charge 0% interest on the card balance. This allows the Stoozer to
borrow money for 'free' and to move it into a high interest
savings account often via an SBT Card that allows such transfers.
At the end of the 0% introductory period,
the money is withdrawn from the savings account
and used to pay off the full credit card balance. The interest gained from the savings account
is your 'profit'. As with any other savings account, taxpayers need to pay tax
on the interest earned. A Stoozer would typically earn between £400 and £2500 per annum from Stoozing.
Why not put some figures into our
stoozing calculator
to see how much you could earn?
There are two types of Stoozing. Fast Stoozing (or "Stoozing") uses cards
that offer 0% on Balance Transfers, whereas Slow Stoozing
uses cards that offer 0% on Purchases. Read our detailed guides below for more information.
An alternative way of making money from Stoozing is to put the borrowed money
into an offset mortgage instead of a savings account.
This reduces your mortgage payments, 'earning' you money in that way: usually tax free.
With all types of stoozing, the Stoozer would normally
have another 0% credit card lined up to pay off the first one at the end of the
introductory period. Thus, the borrowed money could stay
in the savings account for a considerable amount of time.
What Next? - but please keep it simple!
If you like the idea of making some money from credit cards, but have limited time to read up on the more advanced techniques, then you should take a look at our Quick Start Guide to stoozing. It contains everything you need to know to start profiting from the simpler forms of stoozing.
What Next? - I want to read up on this before starting
Choose a Fast Stoozing card now
Read our Full Step by Step Guide to Fast Stoozing
Choose a Slow Stoozing card now
Read our Full Guide to slow stoozing
Choose a High Interest Savings Account now
Calculate your (fast) stoozing profits!
Choose an Offset Mortgage Account now
Read our Guide to Stoozing with an Offset Mortgage
Before embarking on Stoozing, please read our risks section. This is important because you need to be aware of the effects on your credit history and because not everyone has the attention to detail necessary for successful Stoozing.
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