Earn and Save With Credit Cards: Stoozing – Cash Back – Rate Tarts

Who wouldn’t want to save a little more or make a little extra money? For most people in today’s economy, a credit card has become an integral part of managing their finances. Anyone willing to put in a little effort can use their plastic to earn and save money with any of these three strategies – stoozing, rate tarts and cash reward credit cards.

Stoozing to Earn Money

An odd new word used to describe a strategy to make money using credit cards – stoozing – is common in the UK and becoming a part of American jargon. The term is used when someone invests a credit card account to make money. The process is totally legal and can be executed by anyone with good credit and excellent organizational skills.

1. Apply for the longest introductory 0% credit card offer that you can find.

2. Deposit the entire card balance to a high interest rate bank account for the duration of the introductory rate and enjoy the profit from the interest earned.

3. Before the intro rate ends, pay the credit card account back. In essence you’ve made extra money off the bank. To successfully stooze, you will need to repeat the strategy multiple times, whenever the introductory rate expires; it also requires persistence, organization and timing. It’s also necessary to do the calculations in advance to insure you’ll actually make money and not have any potential profits eaten up by annual and transfer fees. High transfer fees will eat away any profit you may hope to make. Resist the temptation to deposit the money into a longer term investment scheme that may not be secure or immediately available.

Cash Back

Anyone with good to excellent credit can qualify for a cash back credit card and earn 0.5% to 3% on every purchase in the form of a cash back rebate check or a credit to the account. Look for a card that best fits how you will use it. Disciplined cardholders will make the most cash back by using multiple cards. For example, use the Miles by Discover® Card for all your travel expenses and the Discover® More® Card for cash back rewards for all your family and home purchases.

Become a Rate Tart – Save Some Dough

Another term used especially in the UK is ‘rate tart’ for an individual who tries to keep all debts at 0% by continually switching card deals. People who use this strategy take advantage of low and zero interest credit cards to pay less in interest or even better still, none. The trick is to transfer the balance in full before the introductory rate expires and requires diligence. Be aware, the strategy can have a negative impact on credit scores, if there are too many transfers in a short period of time; so be sure to have a minimum of twelve months between transfers.

Using any of these strategies will still require responsible financial management. Make sure to read the terms and conditions of every account you open. Be especially aware of transfer fees and different interest rates when transferring and making purchases. Using diligence and careful planning, you too can make and save money with credit cards.

About The Author: As a freelance writer for multiple finance websites and a credit news blog, Noreen provides readers with relevant and timely information. She specializes in finance and money management with a focus on the credit industry; including cash back credit card offers for the purpose of helping consumers secure and use credit to their best advantage.