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I am what's known these days as a stoozer....taking advantage of 0% credit cards for as long as the rate lasts, then transferring it onto another card. I'm on to my 5th card now (not cumulative, I mean my 5th in a row) and have just been offered only HALF the credit limit that all previous cards had, despite my income actually having risen in that time.

Hmmmmm.....maybe this particular company always had a lower limit policy than the others, or maybe the rules have changed.

Discuss!

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Guest Charlie The Tramp
Hmmmmm.....maybe this particular company always had a lower limit policy than the others, or maybe the rules have changed.
Zero Rate Balance Transfers: R.I.P.

It could be the end of 0% balance transfer deals on credit cards as card issuers are forced to introduce charges in order to stem the losses caused by "rate tarts" who continually switch from one zero rate deal to another.

Last week Mint, owned by Royal Bank of Scotland, joined the ranks of providers such as MBNA and Barclaycard when it became the latest card issuer to impose a one-off fee on balance transfers form other credit cards onto their 0% deals.

Until the summer last year transferring balances to a 0% or low rate credit card was free. Last August that all changed as Barclaycard heralded the impending demise of free balance transfers when it became the first card issuer to introduce fees for transfers, charging 2%, up to maximum of £35, of the total amount transferred to its 0% rate.

MBNA, which issues hundreds of cards including the Abbey credit card, followed as it added a 2% charge, minimum £2 and maximum £50, to total balance transfers across the majority of the cards.

"The imminent demise of completely free borrowing should not come as a shock", says Charles Edwards, author of "Don’t Pay Interest". "Any technique which enables borrowers to profit and ends up costing the credit card companies will eventually be killed off.

"Interest holidays on balance transfers, fee-free credit card cheques and even cashback on balance transfers have are all dead and buried. It is not surprising that something as expensive for the credit card companies as fees free 0% balance transfers should be facing a death sentence".

Other card issuers are expected to follow suit and introduce fees for balance transfers as they try recoup some of the losses incurred as a result of borrowers who endlessly revolve their debts form one 0% deal to another.

The advice for now. "Make use of fee-free balance transfer deals while you can".

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I am what's known these days as a stoozer....taking advantage of 0% credit cards for as long as the rate lasts, then transferring it onto another card. I'm on to my 5th card now (not cumulative, I mean my 5th in a row) and have just been offered only HALF the credit limit that all previous cards had, despite my income actually having risen in that time.

Hmmmmm.....maybe this particular company always had a lower limit policy than the others, or maybe the rules have changed.

Discuss!

Did you cancel the 0% card once you had finished with it?

If you build up a stack of credit cards, this will adversely affect your credit rating. Keep the cards for the 0% period then cancel at once before applying for more cards. They will see it the same as if you have lots of loans...cards are a form of loan after all.

I started battering the cards 2 years ago. I've got 40k @ 0% making me 5% :D:D

I never spend one penny of the cards money....just the interest I earn.

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Did you cancel the 0% card once you had finished with it?

If you build up a stack of credit cards, this will adversely affect your credit rating. Keep the cards for the 0% period then cancel at once before applying for more cards. They will see it the same as if you have lots of loans...cards are a form of loan after all.

I started battering the cards 2 years ago. I've got 40k @ 0% making me 5%  :D  :D

I never spend one penny of the cards money....just the interest I earn.

Yes, I make sure the 'dead' ones are cancelled. I'm not at your level, I have 'only' 20K earning me interest......unfortunately I'll have to give some of it back now. Boo Hoo.

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...What is interesting is where do all these names come from? Stoozers, Rate Tarts and remember Carpet baggers?....How come these names surface when its the banks etc losing the money!

...Why didn't they come up with an official name for recent BTLers, ehhh...oh yeh they were making the banks money...!!! ...sorry...  <_<

LOL... :D:D

This was a classic I heard on the radio - people like colonel faulkner and myself "were like THIEVES IN THE NIGHT" taking away profit from the banks and robbing indebted customers of cheaper rates"....this was from a bank PR guy!

WTFF!!!!

Correct me if I'm wrong but most credit cards were charging nigh on 30% interest BEFORE 24 months ago?....I know who the thieves are...and if I can rob a little back, then I will. :ph34r::ph34r::ph34r:

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Did you cancel the 0% card once you had finished with it?

I started battering the cards 2 years ago. I've got 40k @ 0% making me 5%  :D  :D

I never spend one penny of the cards money....just the interest I earn.

Excuse my ignorance, but how do you get 40K credit into a savings account? Don't they charge x percent for cash withdrawals, or am I missing something obvious?

Btw fair play for having the nous for pulling this scam off. I hate banks.

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Excuse my ignorance, but how do you get 40K credit into a savings account?  Don't they charge x percent for cash withdrawals, or am I missing something obvious?

Btw fair play for having the nous for pulling this scam off.  I hate banks.

I started by just paying a chunk onto my everyday card, the one I use for all my shopping etc. Keep using your everyday card AS NORMAL (no stupid purchases) and every month, the extra you 'don't spend' is left in your current account. Transfer it to ING or similar & there you go.

Some of the cards will credit your account directly, no charge. Virgin does this....I kid you not. Slater, any other tricks??(always willing to learn....)

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I learn't something new today, a new 4 letter acronym, Slater I salute you fir this one:

WTFF!!!! :lol:

Colonel Faulkner, maybe we have reached the point where the true 0% stoozers and the 23% defaulters are having a material effect on the lender's profits. Note we've had the much heralded figures showing a decrease in CC lending, a sign of a rates working and pulling us back from the abyss. Ironic indeed if rather than being a positive sign it was merely a sign that those than can pay back the sums during the 0% offer pullback are doing so, leaving the real debt problem behind, just as large if not larger than before as overdraft and other loan forms show little sign of easing.

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Only Me, that mechanism had not occured to me......interesting.........as you say, supremely ironic if it's true.

There are also the defaulters. How much has been written off recently?

When you look over the DWD board on Motley Fool and see people with up to £100K of unsecured lending a piece, you begin to wonder.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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