Cashing In On Credit Cards

Credit cards come with a wealth of incentives to attract new borrowers. These include points, long term low interest rates and 0% balance transfer rates. The balance transfer rate is perhaps the most attractive and it has been used to advantage by many credit card users. Two good examples are credit card tarts and stoozers.

As the name suggests, credit card tarts move their money from credit card to credit card to take advantage of preferential interest rates and balance transfer deals. That is similar to stoozing, but there is one key difference. While credit card tarts usually have a credit card debt that they are looking to reduce, stoozers have no credit card debt and are looking to make money.

Credit Card Tarts

Credit card tarts use 0% balance transfer offers to their advantage by moving their money to keep up with the latest deal. It works like this. A borrower with an outstanding balance on a loan, credit card or store card applies for a new credit card with a 0% balance transfer offer.

Once they receive the card, they transfer the balance onto the new card to take advantage of the preferential rate. This rate may last for a period of six to 12 months, depending on the card issuer. The borrower makes payments as usual, but these are used for clearing the debt.

Well before the preferential rate comes to an end, the borrower transfers the outstanding balance to a new 0% balance transfer deal. The borrower does this as many times as needed to clear the debt. This can be an effective strategy for reducing credit card debt over time.

Stoozers

Stoozers use 0% balance transfer deals to make money. To do this, they need a super balance transfer card. This is a card that allows them to pay money into a bank account without charging an additional fee. An alternative to this is a fee free credit card cheque that can also be used to pay money into a bank account.

The second aspect of stoozing is getting a high interest savings account. Stoozers then use the entire credit limit of the balance transfer card to transfer a balance into their high interest savings account. They make the minimum payments on the credit card by direct debit from their bank account, while they earn interest on the balance in the high interest savings account.

At the end of the interest free period, they can clear the credit card by using the money in the savings account. Any interest earned remains in the account. Another option is to get another balance transfer card and use that to clear the old credit card.

Strategies For Success

Both credit card tarts and stoozers need to be organised to succeed with their strategies. It is important to make repayments on time to avoid damaging the credit rating. It is also essential to apply for a new balance transfer card in good time to avoid having to pay interest.

Related Links

• Quick Balance Transfer Guide
  Balance transfers allow card holders to transfer the money they owe to their existing credit card to another, usually at a special rate of interest. The new credit card company pays off the old credit card debt and transfers it to the new card. This article will tell you how to play the game.
• Successful Stoozing: A Guide
  The introduction of 0% balance transfer deals brought a new financial practice which allowed people to use those deals to make money. The practice is known as 'stoozing' and it is closely related to credit card jumping. The difference is that successful stoozers have to be debt free, otherwise any gains made by stoozing will be lost in paying interest on credit cards.
• Are You A Stoozer?
  'Stoozing' is a term that entered the English language at the start of the 21 st century. It refers to the practice of making money moving money from credit card to credit card to take advantage of preferential interest rates. Stoozers are similar to credit card tarts and credit card jumpers.
• Rate Tart - Are You One?
  Rate tarts are the smart shoppers of the credit card world. They play the system to avoid paying interest on purchases, borrow money for free, and even make money on that borrowed money!