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November 09, 2006
Makin' A Buck Off Your Credit Card
Previously I had mentioned the idea of using your credit card to make money by funding the start up costs for a home based business.
Today I just learned a new term called stoozing
So just how does one go about stoozing?
Stoozing turns out to be a term used in Britain where 0% introductory credit card offers are very common.
To stooz, you must be good at paying bills on time because the concept is this simple:
1. You acquire a 0% introductory interest rate credit card
2. You draw money from your credit card as it is interest free
3. The money drawn from the credit card is placed into an interest baring investment
Heck, 0% is free money. It's the best kind of money.
If you are going to stooz your way to riches you better be absolutely certain your credit card minimum is paid during the interest free period because there are typically costly fees if you don't pay on time.
Now, I have never stoozed myself but I did get a kick out of the name. In fact, I chuckle a bit everytime I say stooz (ha ha).
I am sure that banks will be a stop to this but might be fun to try.
Tip for would-be stoozers:
Check the terms and conditions regarding cash withdrawls on your credit card as cash advances might incur an interest charge.
If you are going to stooz, consider purchasing your interest baring investment directly via the credit card to avoid an interest charge or bank fee on a credit card cash advance.
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