Stoozing: How to make money for freeWhich? explains this credit card trick

25 July 2014

happy blonde woman using her credit card at shop

'Stoozing' is widely regarded as one of the more complicated ways of making money from your credit card. 

Yet, with credit card companies offering increasingly lengthy 0% deals on purchases, and current accounts paying up to 5% AER on accounts in credit, there has arguably never been a better time to do it. 

Here, we explore how to 'stooze' efficiently. 

Which? comparison table - Best 0% on purchases credit cards - all available deals compared

What is stoozing?

Stoozing involves borrowing money on a credit card that offers 0% on purchases, and putting what you'd normally be spending into a high-interest current or savings account.

Currently, the best way to do this is to use a credit card with 0% on purchases for any regular spending you would have done on your debit card. Meanwhile, pay the amount you would have paid off your credit card each month into a Best Rate credit-interest current account to earn up to 5% interest.

As long as you pay the minimum monthly payment on the credit card, and pay off the full remaining balance before the 0% deal ends, this should cost you nothing. 

It used to be common for stoozers to transfer funds straight into their bank account, but most credit cards now charge hefty fees for this.    

How much money can I make by stoozing?

The table below shows how much money you could make by storing money in a Best Rate current account for a year. 

Amount stored in bank accountBasic rate taxpayerHigher rate taxpayer


These figures are based on funds stored in Nationwide's FlexDirect account paying 5% AER on balances of up to £2,500 for 12 months (1% thereafter). Cardholders could gain more interest on balances above £2,500 by storing money in two current accounts that pay credit interest. 

What do I have to do?

Once you've maxed out your credit card and set up a direct debit to transfer the minimum repayment back onto it, you can just sit back and let the interest accumulate until the end of your 0% deal. 

A month before the 0% deal is set to expire, use the money in your bank account to pay off the full credit card balance.

Alternatively, if you would like to leave the funds in your account for even longer, you could pay off the balance using a separate 0% balance transfer credit card. However, you will be charged a fee to transfer the balance.

Which? comparison table: Best 0% balance transfers credit cards - compare the best deals on the market

Mistakes to avoid when stoozing

It's imperative to ensure you don't spend more on your credit card than the amount you deposit in the current account. Otherwise, when you come to repay the balance at the end of the introductory deal, you'll have nothing to show for your efforts but debt.

We also strongly recommend you set up a direct debit for the minimum credit card payment. If you miss a repayment, you may lose the 0% deal and end up paying interest, defeating the whole objective of stoozing. Exceeding the credit limit is also likely to result in the deal being withdrawn, so make sure you keep within this.

Other benefits of credit card spending

Depending on your choice of credit card, you may be able to gain rewards for your spending, as well as interest from your stoozing.

The Santander 123 Credit Card, for example, offers cash back when used in a wide range of supermarkets, department stores and petrol stations.

The best credit cards for stoozing will offer an attractive rewards scheme, as well as a lengthy 0% purchases deal. 

Which? comparison table - Best cash back credit cards - our tables are updated in real-time

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