How Stoozing Works, The Risks, and When It’s Worth Considering
If you’ve spent time exploring personal finance hacks, you may have come across the term “stoozing”. A clever, longstanding technique that uses 0% credit card deals to earn interest on borrowed money.
It’s not new, but with credit card offers and interest rates always changing, many people wonder whether it’s still practical today.
Here’s a clear, easy-to-understand breakdown.
What Is Stoozing?
Stoozing is a financial strategy where someone borrows money at 0% interest (usually through a promotional credit card) and stores that borrowed money in a savings account or investment to generate interest.
You then repay the card before the 0% period ends and keep the difference.
In simple terms:
1. You borrow money at 0%
2. You place it into a savings account or investment
3. You earn interest
4. You repay the balance before the 0% deal expires
5. The interest you keep is your profit
It’s essentially making borrowed money work for you.
What You Need to Stooze
To stooze successfully, three things matter:
1. A 0% credit card
This could be a 0% purchases card, balance transfer card, or cash/money transfer card.
2. A savings account or investment that earns interest
This is where your profit comes from.
3. Discipline and organisation
You must track dates, minimum payments, and repayment deadlines.
Example: How Stoozing Works
Imagine you have a 0% credit card with a £10,000 limit for 12 months.
1. You spend £10,000 using the card, or transfer £10,000 into your bank using a money transfer card.
2. Instead of spending your own cash on bills, you place £10,000 of your own money into a savings account earning 5% AER.
3. Over the year, the savings grow by £500.
4. Before the 0% period ends, you repay the £10,000 credit card balance.
5. You keep the £500 interest (minus any fees).
It’s simple… but only if you stay organised.
Is Stoozing Legal?
Yes.
You’re simply using promotional credit card offers in a strategic way. Provided you meet all payment requirements and follow the card’s terms, everything is above board.
The Risks of Stoozing
Stoozing isn’t “free money,” and there are risks:
0% period expiry
Miss the repayment deadline and you may be charged high interest (often 20–30%+).
Fees
Many credit cards charge balance or money transfer fees (usually 2–3%).
Credit score impact
Multiple credit applications can temporarily affect your credit rating.
Discipline required
One missed payment could cancel the promotional rate.
Tax on interest
Savings interest may be taxable, depending on your Personal Savings Allowance.
Does Stoozing Still Work Today?
Yes. But it’s slightly harder than it used to be.
0% cards are still available (12–24 months is common)
Transfer fees remain typical
Savings rates are relatively strong (around 4–6% AER)
The key factor is the gap between what you earn and what the 0% deal costs you.
When Is Stoozing Actually Worth It?
Here’s an example with £10,000 borrowed, 12 months, and a 2% transfer fee:
| Savings Rate | Interest Earned | Fee (2%) | Profit |
| 1% | £100 | £200 | -£100 |
| 2% | £200 | £200 | £0 |
| 3% | £300 | £200 | +£100 |
| 4% | £400 | £200 | +£200 |
| 5% | £500 | £200 | +£300 |
| 6% | £600 | £200 | +£400 |
A savings rate of around 4%+ starts to make the maths work, depending on your card’s fees.
If the card charges no fee, the breakeven point drops significantly.
Tips for Successful Stoozing
Set a direct debit for the minimum payment
Use reminders for the end of the 0% period
Keep the stooze fund separate from your main spending money
Avoid treating the borrowed money as income
Use guaranteed savings products to avoid market risk
Is Stoozing Right for You?
Stoozing can still be profitable but only for people who are:
financially disciplined
organised
comfortable managing credit
able to secure a strong enough savings rate
For many, it’s a niche strategy rather than a mainstream approach.
If you’re debt-free, methodical, and enjoy finding small financial efficiencies, stoozing might be something worth exploring further.
disclaimer
The information provided on this page is for general education and information only and should not be taken as financial advice.
We are not affiliated with any credit card providers, banks, or financial institutions.
Stoozing involves using credit cards and savings accounts strategically, and it carries financial risks including potential fees, interest charges, and impacts on your credit score if managed incorrectly.
Always check the latest card terms and conditions, and consider speaking with a qualified financial adviser before using any credit-based strategy.
