Making money with your credit cards

[fluffy]

If you are an organized person, stoozing is not risky at all. You have a few weeks to make your payments, whether online or by mail, and the ability to easily verify online that the payment credited correctly. It just takes a little organization and can yield a few thousand dollars per year with very little effort. The problem these days is lower interest rates and stingier credit card issuers

As far as signing up for rewards and cancelling the card afterwards it's an OK strategy as long as you realize that every new card lowers your credit score which in turn may result in higher mortgage/loan/insurance/home equity/credit card rates. So a few $100 rewards may not be worth it if you are going to apply for a large mortgage or other loan soon.

 

[samclem]

If you are an organized person, stoozing is not risky at all.

Well, I guess it depends on what you mean by "organized." The card companies are free to change the rules at any time (usually requiring only that you be given XX days notice), so anyone who is stoozing will need to read every word of everything they receive from their card companies. And, since the card business of one company can get sold to another company without any notice to the stoozer, a stoozer has to at least open every correspondence from every card company to see if their account has been sold. One missed deadline or one missed clause in a new contract can instantly cost more than the stoozer has made in the year (and result in a ding on the stoozer's credit). If this is "easy money", I'll take w*rk.

But, some folks are making money at it, and apparently enjoy this stuff.

 

[youbet]

If this is "easy money", I'll take w*rk.

There ya go....... When I first retired, I was looking around for some small ways to generate a little cash or reduce a few expenses. I did read about stoozing and even ran a few trials on paper. In the end, with my personality, I'm better off using my time to do most all of my house and car maintenance, try to stay on top of my investments and taxes and leave the stoozing to others.

Obviously the gimmicks that CC companies offer to attract business, and which stoozers try to take advantage of, must be working for both parties or it would stop.

 

[heretic]

I just paid off $90k in balance transfers, but with today's interest rates I'm staying out of the game for a while.

It's a group sport for me. It only works if you work with a team who help find the 0% fee/0% interest offers, and who alert each other of individual bank changes and rules.

I did 3 rounds and made a few thousand each time. It was more work than expected, but well worth it financially.

And how can anyone pass up a $300 sign up bonus for an Amex card?

 

[clifp]

I just paid off $90k in balance transfers, but with today's interest rates I'm staying out of the game for a while.

It's a group sport for me. It only works if you work with a team who help find the 0% fee/0% interest offers, and who alert each other of individual bank changes and rules.

I did 3 rounds and made a few thousand each time. It was more work than expected, but well worth it financially.

And how can anyone pass up a $300 sign up bonus for an Amex card?

I was 3 for 4 on stoozing, and I'd keep doing it, but even checking Fat Wallet, I don't see how you can make money with the 3% no cap fees that virtually all cards are charging, when money market rates are <3%.

When you factor in that interest earned is taxable and fees paid aren't deductible it seems like the only winner is Uncle Sam.

 

[REWahoo]

I don't see how you can make money with the 3% no cap fees that virtually all cards are charging, when money market rates are <3%.

When you factor in that interest earned is taxable and fees paid aren't deductible it seems like the only winner is Uncle Sam.

Yep. I did a little stoozing the past couple of years, but the landscape has changed to the point it's not worth it.

 

[bssc]

I just took $15K at 0% with a $75 fee cap from BAC. However, Wells Fargo said that they would put a 6 week hold on it. I mailed it directly to my brokerage and was credited instantly.

 

[chinaco]

I wonder how many people that use these shadow margin accounts accidentally miss a payment and pay up with the penalties and high interest rate (charged if one is late)?