Stoozing

jsheroes on 14/03/2018 - 19:52

I am on the lookout for a new high limit free balance transfer credit card for stoozing, as my current one is coming to the end of its interest free period.

It occurred to me that I could BT onto an existing card, put it in positive territory and then close that card, getting a check for the balance as a result. The card I have in mind has only a 2 dollar fee for cash advance when you have a positive balance.

Can anyone (familiar with what I'm talking about) see a problem with this?

PS - spare me the discussions about my credit rating etc, ta.

Financial

Comments

  • jsheroes on 15/03/2018 - 02:17
    +1

    Or left in an offset, or otherwise invested, yes.

  • BertieBrown on 15/03/2018 - 16:13
    +1

    I have some degree of financial literacy, but I'm not familiar with this; there would be downsides or potential downsides to this practice?

  • jsheroes on 15/03/2018 - 17:57
    +1

    With the BT approach - only issue is ensuring you always pay the minimum payment on time, pay out in full before interest free period ends and don't apply for a large number of cards in a short space of time. I have been doing this for several years and have had no issue. My credit rating has actually improved (now over 800) and I've just refinanced my mortgage, so no issue there. Have never put a card into positive balance and then closed it though, so would love to hear if anyone has experience with this.

    • Wakety-Wack on 16/03/2018 - 18:06

      Could you help me with a few questions the more i seem to read into these credit cards terms the more my brain bleeds!

      If i open a citibank simplicity credit card account and do not touch it, then open a NAB 0% p.a. interest for up to 24 months on balance transfers with a no balance transfer fee, and transfer say $20k to it from the first card, will I have to pay any fees from the nab card? it says it has a 2% on cash advances or $2.50 what ever is greater but that is not a worry right as it is a BT not a Cash advance?

      Also if i close the citibank account in $20k positive, will i get that in a cheaque or have to pay the cash advance fee of 3.5%?

      Any help would be miuch appreciated im getting more and more baffled as i try and understand it.

      • jsheroes on 16/03/2018 - 18:32
        +1

        Answer to the first Q, without having read the Ts and C's of that card, is yes, if they say there's no fee on the BT, there's no fee. It isn't a cash advance. The second scenario, again without having read the Ts and C's, is probably not, as they aren't 'advancing' you any money. The card has a positive balance. But I'd like to hear if anyone has had a problem in this situation.

        • Wakety-Wack on 16/03/2018 - 18:36

          thank you, you have cleared up alot for me :) I appreciate it.

          We just need someone who has done this before to add there 2 cents.

  • Wakety-Wack on 16/03/2018 - 10:10

    I too am intrigued in this "stoozing". I am looking at buying a used car, but would rather take advantage of the interest free periods than pay interest on a car loan ect..

    Could someone please explain what i do? is it:

    -Get a credit card with the highest possible limit and do not touch.

    -Get another card that has the Balance Transfer with a long interest free period.

    -Balance Transfer to the first card (max 80-95% of first cards limit) that will now be in credit and do a cash advance of the positive credit then close the account. As it is in the positive it should incur minimal cash advance fees? or do i just close the account and they send a cheque?

    I could purchase a used car as needed and put any extra onto my mortgage offset account, then payback car amount over interest free term and also return extra amount offsetting mortgage?

    • jsheroes on 16/03/2018 - 18:50
      +1

      Normally, it involves using a BT to offset existing debt on other cards, or possibly putting them into positive balance, which you then spend on the existing cards. In the past Citibank offered a free cheque to self, but no more. I've not heard of closing a card in positive balance previously, which is why I started the thread.

      • Wakety-Wack on 16/03/2018 - 19:05

        Thank you, its a shame the cheque to self is no longer available :(

        I found this:

        Getting a refund if your account has a credit balance
        When you close a credit account, any overpayments, credit or interest adjustments could result in your account balance being in credit. This may not be automatically refunded to you.
        -If your credit card has a credit balance after you have closed the account, contact the card issuer and ask for the credit balance be refunded. Your credit provider may do this by transferring the balance to another account you hold with them or they may send you a cheque.
        -ASIC will take action against any credit providers who fail to refund customers of their outstanding balance when their accounts are closed. See ASIC's media release on refunds given to Citibank credit card customers.

        From here

        Maybe it is as simple as closing the account??

  • Wakety-Wack on 17/03/2018 - 00:18

    Some people over at Whirlpool say that a credit card through a bank may be the better choice, as they could transfer a positive balance to there bank account free of charge.

  • Wakety-Wack on 18/03/2018 - 16:29

    Just an update from over on my thread, this seems to be the best way so far:

    -Open a bank account with a Bank not just a credit card company.
    -Then open a credit card with that same bank, and make a small purchase so you are in the negative.
    -Apply for a BT credit card with another bank, looking for the best possible rate on BT fee and longest interest free period, and have the $x amount sent to card 1.
    -Wait until the amount has cleared and you are in the positive and have it sent to your new bank account under the same bank.
    -Withdraw or transfer to your old bank account, and close the credit card and bank account opened for this purpose.
    -Use funds interest free for agreed term and pay back before it ends /or/ BT again to another provider before term ends for more interest free time.

Login or Join to leave a comment
Login Join