would this work?

daven1986

daven1986

daven1986

Soldato
Joined
29 Oct 2005
Posts
3,298
hi guys, a little idea i had. how about getting a 0% interest credit card, maxing it out, and putting the money in a high interest account then when you have to start paying the card back just remove the money from your high interet account, minus the interest and voila.

or am i just dreaming

daven
 
heh and now if you get many cards........

i might give it a go!!

although do you have to buy stuff to qualify for 0%? if so could you transfer the funds via paypal to count as a purchase?

daven
 
I have not looked into any credit cards in a while, but isn't it normally 0% interest on ballance trancfers (from another credit card company). and 0% on transactions for up to x weeks (at which point the interest on the debt is added from the point of the transaction). Also are you not also required to make a minimum monthly repayment whenever there is a balance outstanding?


It may work. But honestly I would be betting against you on this one.


A better investment would be to save up prior to going to uni, so that you have the funds to take you through the course without needing to use a student loan. Then take out the student loan and put it into a high interest account.
 
You would still have to pay x% back each month even if they don't add interest so the amount in the bank would decrease monthly reducing interest on the money so you probably wouldn't earn that much to make it worth the hassle.

0% interest doesn't mean pay nothing for 6 months.
 
I forget the term, but this kind of thing has been round for a while. You will need multiple cards, and you will need to switch the money round every few months when the 0% ends. Also be careful about applying for lots of cards at one time because it can damage your credit rating.


edit: STOOZING
 
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thats what im going to do with my student loan, as my parents will pay for all my uni costs.

i should get a good money for nothing
 
I have been doing this since i was 18 , but instead of high intrest acconts buying shares. It does work and it can help your credit rating.

Some cards still offer free Superbalance transfers if these are not on offer they will charge you for withdrawing cash or transferring cash.

A simple solution is to get a card that gives you 0% on purchases and put everything on this card ie all your purchases, putting the money you would have spent into a high intrest account. just remember to set up a direct debit covering the minimum payment.
 
its called stoozing. The lenders are trying to put people off doing it as it can work if you are good with regular payments. They have started to charge a balance transfer fee which is normally 2% of the amount transferred. Some times this is capped at £50. If you borrow 6k on 0% for 12 months you could earn > £300 in interest. If you are doing this with uncapped transfer fees and 2 cards (because the 0% offer was for 6 months) then you would pay £120 in fees so you could earn £180 or so. People do this and overpay the mortage as well. if you do it then never use the card to purchase anything with as this will be the last debt to be shifted from the card and is usually at a higher interest rate and always always pay the min monthly amount.
 
thanks for the info, i reckon i'll have to think a bit harder about it though.

with buying shares they are a bit more risky than using a high interest account as you could lose money.
 
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