Should I try credit card stoozing?

Key takeaways

• Stoozing involves using a 0% credit card while keeping your own money in savings to earn interest.

• The profit from stoozing depends on savings rates, credit card fees and the length of the 0% deal.

• Missing a payment or failing to clear the balance before the offer ends can be expensive.

• Stoozing can affect your credit profile and may impact future borrowing applications.

What is credit card stoozing?

Credit card stoozing is a strategy where you use a 0% interest credit card for spending while keeping your own money in a savings account or using it elsewhere.

Rather than paying for purchases from your current account, you put them on a credit card offering a 0% introductory period.

The money you would otherwise have spent can then earn interest in savings until the promotional period ends.

At the end of the 0% deal, you use the money you've set aside to repay the balance in full.

The difference between the interest you've earned and any fees you've paid is your profit.

While the concept is relatively simple, successful stoozing requires careful organisation and financial discipline.

How does it work?

The basic principle is straightforward: borrow at 0% and earn interest elsewhere.

A successful stoozer effectively turns their credit card into a short-term, interest-free loan while keeping their own cash working harder.

Step 1. Open a suitable 0% credit card

Most stoozers apply for a 0% purchase card with the longest interest-free promotional period they can get.

Step 2. Set up a direct debit

Set up a direct debit immediately for at least the minimum monthly payment. Failing to make the minimum payment could result in the loss of the 0% offer, penalty fees or damage to your credit file.

Step 3: Spend on your credit card

Use the new 0% card for your everyday spending so you’re not using the money in your current account balance.

Step 4: Put the money to work

Open a dedicated savings account and deposit the same amount as you’re spending on your credit card. For example, if you’re spending £1,500 on your credit card during the month, transfer £1,500 from your current account into savings.

Note: Some homeowners may choose to keep the money in an offset mortgage account, reducing the amount of mortgage interest they pay.

Step 5: Track the end date

For stoozing to be successful, it’s critical you don’t breach the conditions of the 0% deal and have the money available to pay off what you owe.

As such, make a note of the credit card’s 0% expiry date and savings maturity dates (if not in an easy access savings account). A calendar reminder several months before the offer expires can help prevent costly mistakes.

Step 6: Repay or transfer

When the promotional period ends, repay the balance in full using your savings pot or transfer the balance to a 0% balance transfer card if available.

A balance transfer card will usually come with a one-off transfer fee, so most stoozers aim to clear the balance completely and keep any interest earned as profit.

What are the risks to stoozing?

Stoozing can be profitable, but it can also unravel surprisingly quickly if you make a mistake and potential rewards are often relatively modest compared with the financial consequences of getting it wrong.

Common risks include:

• Missing a minimum payment: This is one of the biggest risks. Many providers reserve the right to withdraw a 0% promotional offer if you miss a payment. You could suddenly find the entire balance being charged interest at the card's standard APR.

• Forgetting the deal end date: A 0% offer won't last forever. If the promotional period ends before you've cleared the balance, interest charges can begin immediately.

• Choosing the wrong savings account: Some fixed-term savings accounts restrict access to your money. While they might offer a better interest rate, if you can't withdraw funds when the card balance becomes due, any gains will be wiped out by unexpected interest charges.

• Transfer fees: Balance transfer and money transfer cards often charge fees. A transfer fee of 3% on £5,000 would cost £150 immediately. This reduces the overall profitability of stoozing and is why stoozers may prefer sticking with 0% purchase cards.

• Falling savings rates: Variable-rate savings accounts can reduce rates at any time. A stoozing strategy based on a 5% return may become much less attractive if rates fall significantly.

• Tax on savings interest: If your savings interest exceeds your personal savings allowance, some of your profits could become taxable. This is why a tax-free cash ISA could be the right account choice.

• Overspending: Having access to a large credit limit can tempt some people into spending more than they otherwise would.

• Credit report impacts: Opening multiple cards, carrying large balances and making repeated credit applications may affect how future lenders assess you.

Is stoozing legal in the UK?

Yes. Stoozing is completely legal in the UK.

There is nothing unlawful about using a promotional credit card offer while earning interest on your own savings.

Credit card providers understand that some customers use products in this way and generally permit it within the terms and conditions of the account.

However, being legal does not necessarily mean every lender welcomes it.

Some lenders may:

• Decline applications if they believe you're seeking credit solely for stoozing

• Offer lower credit limits

• Refuse further applications if you repeatedly move balances between providers

In practice, as long as you comply with the card's terms and conditions, stoozing remains a legitimate financial strategy.

Is stoozing right for me?

Stoozing tends to suit people who are financially organised and comfortable managing multiple accounts.

It may be suitable if you:

• Always pay bills on time

• Have a strong credit history

• Maintain a detailed budget

• Have spare cash available each month

• Feel confident managing deadlines

It may not be suitable if you:

• Have a low credit limit, as

• Struggle to stay organised

• Already have debt problems

• Frequently miss payments

• Need access to your savings at short notice

Are planning to apply for a mortgage soon, as lenders may take outstanding credit card balances into account when assessing affordability

How much could I make from stoozing?

The amount you can earn depends on a number of factors including how much you can save (equivalent to your spending on credit), the savings rate available, the credit limit on your credit cards, length of the 0% deal, and any transfer fees, charges or taxes that might apply.

Using £1,500 of monthly spending as an example:

Example: 12-month stoozing period

Example: 24-month stoozing period

These figures are illustrative only and assume savings rates remain unchanged, interest compounds monthly, minimum card payments are made from separate funds and no fees or taxes apply. Also, that the credit limit is high enough to accept £1,500 a month without the balance (less minimum payment) being cleared.

Why longer deals matter

Longer 0% periods generally create larger opportunities for stoozing because more money remains invested for longer.

For example:

Importantly, longer deals also reduce refinancing risk because you don't need to find another promotional card as quickly.

Is stoozing worth it right now?

Whether stoozing is worthwhile depends largely on the gap between borrowing costs and savings rates.

When savings rates are relatively high and lengthy 0% deals are available, the strategy becomes more attractive.

When savings rates fall, the rewards become smaller while the risks remain broadly unchanged.

Current savings rates and credit card offers change regularly, so it's worth checking the latest deals before calculating potential returns.

You can compare the latest:

• Easy-access savings rates, currently up to 5.00% ^{^}

• Cash ISA rates, currently up to 4.62% ^{^}

• 0% purchase cards, currently up to 25 ^{^} months

If you are looking to move your balance (rather than pay off the credit card and start over), you could also look at:

0% balance transfer cards, currently up to 36 ^{^} with an average 3% ^{^} transaction fee

What do I need before I start stoozing?

Before considering stoozing, make sure you have:

• A suitable credit limit: Even if you're accepted for a 0% card, the lender may not offer a high enough limit for stoozing to generate meaningful returns

• A debt-free plan: Existing high-interest debt should usually be prioritised first

• Budget headroom: Enough spare income to absorb unexpected costs

• Strong organisation: Confidence managing multiple accounts and deadlines

• Good credit eligibility: Access to competitive 0% offers generally requires a good credit profile

• Emergency savings: A separate safety net in case circumstances change

Which type of 0% credit card should I use for stoozing?

• 0% purchase cards: These are often the simplest option. You put everyday spending on the card while saving the equivalent cash. There are usually no transfer fees and they are straightforward to manage.

• 0% balance transfer cards: These allow you to move existing credit card debt to a card charging 0% interest. They can be useful if you already have debt and want to save on interest. The downside is that transfer fees often apply.

• 0% money transfer cards: These allow you to transfer cash directly into your bank account to create an immediate stooze pot, but transfer fees are common and interest-free periods are often shorter.

What savings account should I put my stooze pot in?

You’re not limited to the type of savings account you choose, but stoozing will only work if the interest rate is high enough and you can access the money when you need it.

Most stoozers also prefer cash-based products because the repayment date on the credit card is fixed. Investing introduces the risk that your money could be worth less when you need it.

Saving account options include:

• Easy-access savings: Ideal for flexibility and easy access to funds, but interest rates can fall without much notice

• Fixed-term savings: Will provide guaranteed returns, but may give limited access to the money or charge an interest penalty if you need to get it quickly

• Cash ISA: Tax-efficient way of saving, but rates might not be market-leading

• Stocks and shares ISA: Generally designed for long-term investing, with the risk that the capital might fall in value, not leaving you enough to clear your credit card debt

If you have an offset mortgage, you may also be able to use money from stoozing to help reduce the amount of interest you’ll pay.

How can fraud affect stoozing (and what should I do to protect myself)?

Stoozing often involves larger balances spread across multiple accounts, making good security particularly important.

Fraudsters may target credit card accounts, online banking, savings accounts and email accounts containing financial information.

A helpful stoozing security checklist is:

• Use strong, unique passwords

• Enable two-factor authentication

• Check statements regularly

• Monitor savings accounts frequently

• Never share one-time passcodes

• Keep devices updated

• Report suspicious activity immediately

• Use provider security alerts where available

Will stoozing affect my credit score or future borrowing?

Potentially, yes. When you apply for a new card, lenders will usually perform a hard credit search and multiple applications over a short period can make you appear reliant on credit.

Lenders may also consider credit utilisation, where large balances relative to your credit limits can affect how lenders assess risk.

They will also look at your affordability because despite being on a 0% card, it is still borrowing. As such, potential mortgage providers and other lenders may take stoozed balances into account when assessing applications.

If you are going to stooze, try to make every payment on time and this remains one of the most important factors affecting your credit profile.

How do I stay organised while stoozing?

Stoozing doesn’t have to be complicated, but to prevent getting into a muddle it is useful to have a checklist to work through. This could include:

• Record card opening and 0% expiry dates

• Set up minimum payment direct debits immediately

• Track monthly credit card balances

• Track savings balances and monitor interest earned

• Review savings rates regularly as it may be worth moving savings accounts

• Set reminders six months before promotional offers end

• Decide whether to repay or transfer balances

• Keep emergency savings separate

What are the alternatives to stoozing?

For many people, a simpler alternative to stoozing is to focus on building savings directly rather than using credit cards as part of the process. Regularly putting money into a high-interest savings account or Cash ISA can help you grow your savings without having to track promotional periods, manage multiple accounts or worry about repayment deadlines.

If you already have debt, particularly on credit cards or loans charging interest, paying that off should usually be your priority. The interest saved from clearing expensive borrowing is often greater than any profit you could make from stoozing.

More useful guides

Looking to find out more about credit cards? We have number of helpful guides to support, including:

• How credit cards work

• Balance transfer credit cards explained

• What affects your credit score?

• Credit card fees and charges explained

Compare credit cards with MoneySuperMarket

If you’re looking for a new credit card, then comparing options is quick and easy with MoneySuperMarket.

Just tell us a little about yourself and your finances, as well as what you want to use the new card for, and we’ll give you a list of deals tailored to your needs.

You’ll only know your credit limit once you’ve been approved, but you will be able to sort and compare deals by interest rate, any benefits or incentives, and how likely you are to get the card if you apply.

Once you've chosen the card you want to apply for, simply click through to the provider to complete your application.

MoneySuperMarket is a credit broker – this means we'll show you products offered by lenders. We never charge customers for this broking service. Instead, we're usually paid a fee by lenders, although the size of that payment does not affect how we show products to customers.