Stoozing... have you done it before?
By ahgong
@ahgong (10064)
Singapore
July 1, 2008 3:49am CST
There are a fair number of credit cards available that offer an interest-free period on balance transfers for a specified amount of time.
There are also one or two credit cards that offer the option to do a balance transfer to a current account, rather than a credit card (known as a super balance transfer or SBT in the trade). Using the two, it is possible to get a free loan for the time period of the 0% offer that can be utilised as a method of earning interest.
Here where I live, there is a transfer fee involved. Usually it will be at a cost that is more than the interest that you would have earned if you put it in a bank.
Unless of course you have a way to beat the cost of the fees, this is one interesting method I have yet to try.
I am wondering, does anyone here ever stooze?
What are the bank fees like where you come from?
2 responses
@applefreak (3130)
• Singapore
1 Jul 08
wow that's really cool if it's offered here. the trasnfer fee is pretty hard to beat. the only way i can think of is the stock market. however, there's no sure way to beat the fees. unless you've got some information about some company that no one else knows. then again, trading on these information is not exactly legal you know? ;p
@ahgong (10064)
• Singapore
1 Jul 08
I was actually thinking along the line of using FD as the tool. Those that returns a good percentage with capital protection.
Problem is, those higher FD rates require you to lock in the money for at least a year in order to qualify for the higher first 6 month return rate.
So, it defeats the purpose as you cannot do the stooze due to that.
@ahgong (10064)
• Singapore
3 Jul 08
I am also looking at it that way. But that would mean having to be sure to make the minimum payment every month in order for this to work well.
Lots of home work to do before embarking on such a thing.
I wonder if it is actually possible to do this. Cos the transfer fees are getting more and more expensive.
@applefreak (3130)
• Singapore
2 Jul 08
well, it can be used if you know there's a sum of money coming in. so you take the 6 month interest free offer. then you can pay it off 6 months later when you money comes in. posting a lot a lot on mylot helps too. lol
@squaretile (3778)
• Singapore
1 Jul 08
well I have not tried it because i believe that there is no such thing as a free lunch, and since I don't need extra credit, I couldn't really be bothered to go through the fine print on these offers. Usually these brochures on fund transfers just end up in the dust bin for me.
I suppose if one needs an interest free loan then this might be a good way to get one. But always read the fine print. cos I believe that banks are there just out to trap people into over-committing their finances and then jump in with ridiculous interest rates once you slip up, like forget a payment deadline or something. :) Nasty creatures, banks and credit card companies.
@ahgong (10064)
• Singapore
1 Jul 08
I know what you mean. When you owe them money, they are super efficient to collect.
When they owe you money, there is always a waiting period of a few business days.
Then comes the efficiency of them when they are providing the service.
If you give them money, it is always fast and prompt service. When you want to take it out, heh heh, that is another story altogether!
