Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Stoozing shopping experience:

1. Compare - without doubt the biggest advantage that the Stoozing offers shoppers today is the ability to compare thousands of Stoozing at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.

2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about

3. Testimonials - don't know anybody that has bought a Stoozing? Wrong! If the Stoozing is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.

4. Questions - Got a question about Stoozing then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....

5. Reputation - Never heard of the company selling Stoozing? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Stoozing and build up a picture of their reputation for sales, returns, customer service, delivery etc.

6. Returns - still worried that even after all of the above your Stoozing wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.

7. Feedback - happy with your Stoozing then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.

8. Security - check for the yellow padlock on the Stoozing site before you buy, and the s after http:/ /i.e. https:// = a secure site

9. Contact - got a question about Stoozing, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.

10. Payment - ready to pay for your Stoozing, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.



Stoozing is a slang term used to describe the act of borrowing money at 0% (typically on credit cards) and earning interest on the money and paying it back before the 0% period ends. In effect, it is free money for little work as long as the borrower is good with paper work and can keep up the minimum payments required. Stoozing can also be viewed as a form of Arbitrage. The term was coined circa 2004.

Etymology The word "Stoozing" came into existence from posts on the Motley Fool UK discussion boards in early 2004. Many people were earning money on 0% deals before 2004, but one discussion board contributor, Stooz, was prolific and so it was once referred to as "doing a Stooz". The word "Stoozing" appeared to work, so it The term "rate tart" is also sometimes used.

In the United States, the concept gained a similar following.

Method Credit cards in the United Kingdom will typically offer 0% interest on transferred balances for 6-12 months for newly opened card accounts. Credit cards in the United States have similar offers. In both countries, cards may also offer a similar period covering purchases. A stoozer will use an introductory period balance transfer at 0% (or whatever low rate has been offered) for the purpose of transferring their new credit Credit Limit into a high-yield savings account rather than an existing debt. A balance transfer is usually taken to mean: a payment made by the credit card issuer to a third-party on behalf of a borrower in settlement of a debt (the balance to be transferred) the borrower has with that third-party. A stoozer may crucially have no indebtedness, so any payment made on their behalf can be used in reality to preserve their savings account balances elsewhere - at no (or low) interest cost to them. Several devices exist to maintain (and indirectly build) offsetting saving account balances in this manner:

- Credit card cheques (checks) issued to the borrower allow them to directly credit themselves rather than pay down an existing debt immediately (which may have some time itself remaining of any introductory period)

- A balance transfer from a credit card with no (or smaller) debit balance to create an intentional credit balance on the account which the borrower can seek to recover either gradually (eg day to day purchases) or instantly (eg cheques issued by the secondary card to the borrower)

- A Direct Credit made to the personal bank (checking) account of the borrower, with the knowledge of the issuer, at their request. (This has become colloquially known as making a Super Balance Transfer - or sometimes 'SBT')

Offsetting and stoozing An alternative to the pure form of stoozing is Offset loan itself - typically on large secured debts like mortgages. Here the stoozer carries real indebtedness and their objective is not to generate profits but simply interest savings in whatever form their loan agreement will allow. Many mortgages now permit overpayments by giving the borrower the opportunity to draw at the same rate of interest later within the (declining) limits set out. Other mortgages are genuine offset loans that sweep borrowers' entire savings balances with the lender and 'off' of their loan account. In either case, the effect is the same.

Stoozing in practice While the simplest form of stoozing will involve only a single debt-swap, with one account directly repaying another, successful stoozing relies on being able to muster several transferred balances at the same time in order to generate usefully large profits (or savings). Stoozed balances are constantly running down, as every card requires monthly servicing payments of (typically) 2 percent of the reducing balance throughout its introductory period as well as needing to be repaid at the end of this period. But, as the availability of introductory card offers varies significantly (that is, offers change), effective stoozers must research opportunities and apply for new credit cards speculatively as they arise - without guarantee of success - rather than simply when one introductory period ends.

Effective stoozing also relies on making effective applications for further credit. Each application made gives rise to an enquiry of the personal credit history of the borrower, which is shared between individual card issuers and the commercial Credit bureau#United Kingdom (CRAs) maintaining such files. In the UK the main CRAs used are Experian, Equifax and Callcredit; in the US they are Experian, Equifax, and TransUnion. In addition, regardless of whether an application for credit is successful, the fact that a search will have been made on a person's file is itself recorded and made known to future lenders. To maximize the chances of success, therefore, applications should ideally not be made too frequently.

A more basic approach to stoozing is just to apply for a single credit card at a time and to do so at least six weeks before any introductory period ends - giving sufficient time if accepted for the issue of a new card to transfer a balance off the original card - even if that is a few weeks before the original card's introductory period would have ended. Unless the stoozer sticks with this basic single application method, however, expiration dates from differing introductory periods on different cards will inevitably become staggered and overlap with time. In addition the amount of credit available from individual cards can vary greatly which complicates the practice of matching debts. The stoozer may concentrate, therefore, on one method for building their balances (e.g by use of super balance transfers) and quite separate methods for repaying them - only rarely employing an actual balance transfer in its precise sense to swap debts. The objective always remains the same however - to preserve or (re)build stoozed balances.

Due to the different features available on different cards only the commonalities of stoozing with credit cards have been described. Secondary strategies that take advantage of specific features arguably justify the term 'stoozing' also. These can include:

- Using one credit card (if it allows) to make repeated balance transfers during the introductory period to meet the minimum payments on another card requiring them - thus maintaining a slightly higher balance average throughout the period on the former card.

- Using a credit card which offers 0% for a period on purchases (but not necessarily on balance transfers) to build up debt over the introductory period that can be transferred subsequently (sometimes referred to as 'slow' stoozing)

- Using a (rarer type of) credit card that gives interest free periods on balance transfers, in addition to normal purchases, to repay debt on an expiring card - then repaying this debt in full as a credit card account settled in full each month attracts no interest. For a brief period, the original debt is effectively carried beyond the end of its 0% rate.

The popularity of stoozing, deliberately taking advantage of cheap borrowing where there is technically no need to borrow, has increased steadily in the UK in recent years as the availability of 0% borrowing has itself gone from being almost unheard of before the year 2000 to becoming an established feature of almost every new credit card currently (as of 2006) offered in the UK

Examples An initial balance of £3000 borrowed over 6 months with 2% monthly repayments averages about 95% (£2850). At a 4.00% pa after tax savings rate that generates a profit of £57 (about 100 USD). An initial £8000 borrowed over 12 months with an 2% balance transfer fee (£160) and 2% monthly payments averages about 90% (£7200). The net profit is then about £288 - £160 or £128 (about 200 USD). As these figures show, effective (that is profitable) stoozing depends on holding of several active stoozed balances simultaneously and carrying these over successfully by making several applications for credit every year for a number of years.

Online sites, such as Savings Agent, allow you to find and maximize the value of stoozing by transferring balance between credit cards.

In the media Articles in the press and some financial industry experts have implied that such behaviour indicates an individual being careless, short term-ist or even ignorant when it comes to money. They point out that levels of personal debt are high. Against this backdrop, Rate Tarts (or Card Tarts) are accused of running up bills on credit cards and personal loans and saving nothing for the future.

There's another body of opinion that suggests that the very fact that people are making credit card offers work for them should be seen as a positive step. Understanding how the deals work and keeping track of when they expire demonstrates sound financial management.

Rate Tarts show that Brits can be savvy with their cash, putting an emphasis back on the financial services industry to provide the kinds of products that people want to put their money into. As if to emphasise the point, experienced Rate Tarts are also now applying their skills to other products such as savings accounts, mortgages, utilities and others.

More recently the press has reported that Rate Tarts risk damaging their credit rating by repeatedly applying for credit cards. There is some truth in this. If you apply for many cards within a short time period, you risk appearing to the credit rating agencies that you have a desperate need for credit and are therefore a credit risk.

External links

Stoozing is a slang term used to describe the act of borrowing money at 0% (typically on credit cards) and earning interest on the money and paying it back before the 0% period ends. In effect, it is free money for little work as long as the borrower is good with paper work and can keep up the minimum payments required. Stoozing can also be viewed as a form of Arbitrage. The term was coined circa 2004.

Etymology The word "Stoozing" came into existence from posts on the Motley Fool UK discussion boards in early 2004. Many people were earning money on 0% deals before 2004, but one discussion board contributor, Stooz, was prolific and so it was once referred to as "doing a Stooz". The word "Stoozing" appeared to work, so it The term "rate tart" is also sometimes used.

In the United States, the concept gained a similar following.

Method Credit cards in the United Kingdom will typically offer 0% interest on transferred balances for 6-12 months for newly opened card accounts. Credit cards in the United States have similar offers. In both countries, cards may also offer a similar period covering purchases. A stoozer will use an introductory period balance transfer at 0% (or whatever low rate has been offered) for the purpose of transferring their new credit Credit Limit into a high-yield savings account rather than an existing debt. A balance transfer is usually taken to mean: a payment made by the credit card issuer to a third-party on behalf of a borrower in settlement of a debt (the balance to be transferred) the borrower has with that third-party. A stoozer may crucially have no indebtedness, so any payment made on their behalf can be used in reality to preserve their savings account balances elsewhere - at no (or low) interest cost to them. Several devices exist to maintain (and indirectly build) offsetting saving account balances in this manner:

- Credit card cheques (checks) issued to the borrower allow them to directly credit themselves rather than pay down an existing debt immediately (which may have some time itself remaining of any introductory period)

- A balance transfer from a credit card with no (or smaller) debit balance to create an intentional credit balance on the account which the borrower can seek to recover either gradually (eg day to day purchases) or instantly (eg cheques issued by the secondary card to the borrower)

- A Direct Credit made to the personal bank (checking) account of the borrower, with the knowledge of the issuer, at their request. (This has become colloquially known as making a Super Balance Transfer - or sometimes 'SBT')

Offsetting and stoozing An alternative to the pure form of stoozing is Offset loan itself - typically on large secured debts like mortgages. Here the stoozer carries real indebtedness and their objective is not to generate profits but simply interest savings in whatever form their loan agreement will allow. Many mortgages now permit overpayments by giving the borrower the opportunity to draw at the same rate of interest later within the (declining) limits set out. Other mortgages are genuine offset loans that sweep borrowers' entire savings balances with the lender and 'off' of their loan account. In either case, the effect is the same.

Stoozing in practice While the simplest form of stoozing will involve only a single debt-swap, with one account directly repaying another, successful stoozing relies on being able to muster several transferred balances at the same time in order to generate usefully large profits (or savings). Stoozed balances are constantly running down, as every card requires monthly servicing payments of (typically) 2 percent of the reducing balance throughout its introductory period as well as needing to be repaid at the end of this period. But, as the availability of introductory card offers varies significantly (that is, offers change), effective stoozers must research opportunities and apply for new credit cards speculatively as they arise - without guarantee of success - rather than simply when one introductory period ends.

Effective stoozing also relies on making effective applications for further credit. Each application made gives rise to an enquiry of the personal credit history of the borrower, which is shared between individual card issuers and the commercial Credit bureau#United Kingdom (CRAs) maintaining such files. In the UK the main CRAs used are Experian, Equifax and Callcredit; in the US they are Experian, Equifax, and TransUnion. In addition, regardless of whether an application for credit is successful, the fact that a search will have been made on a person's file is itself recorded and made known to future lenders. To maximize the chances of success, therefore, applications should ideally not be made too frequently.

A more basic approach to stoozing is just to apply for a single credit card at a time and to do so at least six weeks before any introductory period ends - giving sufficient time if accepted for the issue of a new card to transfer a balance off the original card - even if that is a few weeks before the original card's introductory period would have ended. Unless the stoozer sticks with this basic single application method, however, expiration dates from differing introductory periods on different cards will inevitably become staggered and overlap with time. In addition the amount of credit available from individual cards can vary greatly which complicates the practice of matching debts. The stoozer may concentrate, therefore, on one method for building their balances (e.g by use of super balance transfers) and quite separate methods for repaying them - only rarely employing an actual balance transfer in its precise sense to swap debts. The objective always remains the same however - to preserve or (re)build stoozed balances.

Due to the different features available on different cards only the commonalities of stoozing with credit cards have been described. Secondary strategies that take advantage of specific features arguably justify the term 'stoozing' also. These can include:

- Using one credit card (if it allows) to make repeated balance transfers during the introductory period to meet the minimum payments on another card requiring them - thus maintaining a slightly higher balance average throughout the period on the former card.

- Using a credit card which offers 0% for a period on purchases (but not necessarily on balance transfers) to build up debt over the introductory period that can be transferred subsequently (sometimes referred to as 'slow' stoozing)

- Using a (rarer type of) credit card that gives interest free periods on balance transfers, in addition to normal purchases, to repay debt on an expiring card - then repaying this debt in full as a credit card account settled in full each month attracts no interest. For a brief period, the original debt is effectively carried beyond the end of its 0% rate.

The popularity of stoozing, deliberately taking advantage of cheap borrowing where there is technically no need to borrow, has increased steadily in the UK in recent years as the availability of 0% borrowing has itself gone from being almost unheard of before the year 2000 to becoming an established feature of almost every new credit card currently (as of 2006) offered in the UK

Examples An initial balance of £3000 borrowed over 6 months with 2% monthly repayments averages about 95% (£2850). At a 4.00% pa after tax savings rate that generates a profit of £57 (about 100 USD). An initial £8000 borrowed over 12 months with an 2% balance transfer fee (£160) and 2% monthly payments averages about 90% (£7200). The net profit is then about £288 - £160 or £128 (about 200 USD). As these figures show, effective (that is profitable) stoozing depends on holding of several active stoozed balances simultaneously and carrying these over successfully by making several applications for credit every year for a number of years.

Online sites, such as Savings Agent, allow you to find and maximize the value of stoozing by transferring balance between credit cards.

In the media Articles in the press and some financial industry experts have implied that such behaviour indicates an individual being careless, short term-ist or even ignorant when it comes to money. They point out that levels of personal debt are high. Against this backdrop, Rate Tarts (or Card Tarts) are accused of running up bills on credit cards and personal loans and saving nothing for the future.

There's another body of opinion that suggests that the very fact that people are making credit card offers work for them should be seen as a positive step. Understanding how the deals work and keeping track of when they expire demonstrates sound financial management.

Rate Tarts show that Brits can be savvy with their cash, putting an emphasis back on the financial services industry to provide the kinds of products that people want to put their money into. As if to emphasise the point, experienced Rate Tarts are also now applying their skills to other products such as savings accounts, mortgages, utilities and others.

More recently the press has reported that Rate Tarts risk damaging their credit rating by repeatedly applying for credit cards. There is some truth in this. If you apply for many cards within a short time period, you risk appearing to the credit rating agencies that you have a desperate need for credit and are therefore a credit risk.

External links

 

Stoozing



 
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