J
jessica.k
Guest
Hey there,
A friend of mine told me about "stoozing". I found some information on the internet about the topic and think it sounds kind of fishy. Is stoozing illegal? My friend said he wanted to try it out and apply for one of those 0% credit cards. Should I be concerned?
Thanks!
Brendan's edit: from Wikipedia
Stoozing is the act of borrowing money at an interest rate of 0%, a rate typically offered by credit card companies as an incentive for new customers. The money is then placed in a high interest bank account to make a profit from the interest earned. The borrower (or "stoozer") then pays the money back before the 0% period ends. The borrower does not typically have a real debt to service, but instead uses the money loaned to them to earn interest. Stoozing can also be viewed as a form of arbitrage.
A friend of mine told me about "stoozing". I found some information on the internet about the topic and think it sounds kind of fishy. Is stoozing illegal? My friend said he wanted to try it out and apply for one of those 0% credit cards. Should I be concerned?
Thanks!
Brendan's edit: from Wikipedia
Stoozing is the act of borrowing money at an interest rate of 0%, a rate typically offered by credit card companies as an incentive for new customers. The money is then placed in a high interest bank account to make a profit from the interest earned. The borrower (or "stoozer") then pays the money back before the 0% period ends. The borrower does not typically have a real debt to service, but instead uses the money loaned to them to earn interest. Stoozing can also be viewed as a form of arbitrage.