too good to be true?

[muttonhead]

seen a prog on utv,author of new banking book telling you how to make money by doing nothing(nearly).all you had to do was get out an ordinary loan and pay it back via a credit card loan as interest rates were lower from one to the other.
anyone know if this is the case down south?

 

[SteelBlue05]

you borrow say 5k from someone, you still have to pay back 5k. How do you make money?

 

[Madra]

Eh .. Did someone actually decide on that name for you or did you make it up yourself ?

 

[SteelBlue05]

Unless you earn some high interest rate for having your credit card in credit and pay of the loan at a lower interest rate? would that make a difference? You might make about .5 of a cent!

 

[redbhoy]

If you owe money on a credit card at say 13.9% then take out a personal loan from tesco at 7.9% and pay off the credit card you'll save money in the long run but wont make any! You still owe the original and whatever interest you've already paid.

 

[RainyDay]

Didn't see the show, but I'm guessing that it had something to do with 0% introductory offers on credit card transfers. There are a few flaws with trying to make any decent money on this;

- the €40 stamp duty per credit card account
- the relatively low credit limits that you are likely to get for any new credit card a/c

 

[demoivre]

Didn't see the show, but I'm guessing that it had something to do with 0% introductory offers on credit card transfers. There are a few flaws with trying to make any decent money on this;

- the €40 stamp duty per credit card account
- the relatively low credit limits that you are likely to get for any new credit card a/c

I would say you are right - the pratice is referred to as "stoozing " and is profitable in the UK because of higher deposit rates and no stamp duty on cc's.
http://www.stoozing.com/

 

[TheGreenMan]

I would say you are right - the pratice is referred to as "stoozing " and is profitable in the UK because of higher deposit rates and no stamp duty on cc's.
http://www.stoozing.com/

Also note the warning on that site:

You will damage your credit history rating very badly while stoozing, so please read and understand the credit history section in Resources.​

 

[muttonhead]

thanks for the replys people.guess it was just too good to be true.

Eh .. Did someone actually decide on that name for you or did you make it up yourself ?

i picked the name myself because i thought it wuold make ppl with low self esteem more confident to make a reply.so, good for you.
(ps i spelt would that way so you could come back on the attack again).

 

[demoivre]

Also note the warning on that site:

You will damage your credit history rating very badly while stoozing, so please read and understand the credit history section in Resources.​

Irrespective of that point ( which I think is a bit misleading ) the possibility of Gordon introducing a tax on each cc presently held along with the hassle of it all would be enough to deter me from the practice even if I did live in the UK.