Risks of Stoozing

Before embarking on Stoozing it is important that you understand the potential risks and to recognise that it is not suitable for everyone. This section explains the risks that we are aware of, but you should make your own assessment before deciding to proceed.

Can anyone make money from Stoozing?

No, I am afraid not. To benefit from Stoozing, you have to be in the position where you do not actually need to borrow any money. So this means that anyone in debt can not make money by Stoozing. However, introductory rate credit cards can play a significant part in reducing debt by temporarily minimising (or eliminating) interest charges during introductory periods. To learn more about managing debt, please refer to the Debt Management Guide on our sister site makesenseofcards.com.

Even if you are not in debt, Stoozing may not be for you. There are many potential pitfalls for those who do not have an attention to detail. Before embarking on Stoozing you need to be honest with yourself.

  • Do you have the time and inclination to manage your finances with great care?
  • Do you have an attention to detail?
  • Are you prepared to take the time out to read every line of your CC's T&C's?
  • Do you have a track-record of managing your finances well?
  • Are you prepared to devote some time to researching offers and making applications?
  • Can you move money around within specific time deadlines?
  • Do you live without state benefits and expect this to remain the case?

If the answer to any of those questions is "No", you may not have the right frame of mind or personal circumstances for Stoozing. Another area to consider is how open to temptation you are. If you would feel in the slightest bit tempted to spend or gamble (including investing) the CC money, then don't consider Stoozing. It is imperative that the borrowed money is sitting there safely in a no risk account so that you can pay off the CC when required.

Finally, how much do you care about your credit rating? To maximise your 'earnings' from Stoozing, you will probably take on a lot of 'debt'. While you know that you could pay off all the debt tomorrow because it is all sitting in a savings account, any future lender doesn't know that. So if you care about your credit rating or can foresee that you will need credit in the near future, then forget Stoozing for the time being. The more debt you take on, the more likely that another lender will turn down a credit request. If such a rejection was just for another Stoozing card, then that would be fine. However, if the rejection was for a mortgage application for your dream home then that could be a bit more of a problem. To learn more about mortgage applications and stoozing, please read our article: "Will Stoozing Affect my Mortgage?"

If you want to check your credit history before proceeding, click here for a free copy of your credit report from Experian.

What are the risks in Stoozing?

  • You spend some of the borrowed money and can not pay it back, so incur interest charges
  • You damage your credit rating and can not borrow money in the future when you really need it
  • You don't pay off the full amount at the end of the introductory period and incur interest charges
  • A balance transfer to another card does not pay off the balance in time and you get charged interest
  • you use your Stoozing card for purchases and get charged interest (You should never use your Stooz card for purchases unless it has a matching intro period)
  • Having the stoozed money in a savings account may affect your entitlement to state benefits that are means tested i.e. you may no longer be eligible for benefits where they take into account your savings.

What Next?

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