It's January 2020. The Bank of England base rate sits at 0.75%. Savings rates are, frankly, underwhelming. And yet there's a perfectly legal strategy that lets you earn interest on money you were going to spend anyway — using credit cards that charge you nothing.
It's called stoozing, and it's been quietly making money for savvy people since the early 2000s. If you've ever wondered how 0% credit cards could actually put cash in your pocket, this is your complete strategy guide.
What Is Stoozing and Why Does It Work?
The concept is beautifully simple. You get a credit card that offers 0% interest on purchases for a set period — often 12 to 24 months. Instead of paying for your everyday spending with your debit card, you pay with the 0% card. The cash that would have left your current account stays put, and you park it somewhere earning interest.
Before the 0% period ends, you pay off the card in full. You keep every penny of interest.
You're not borrowing money you can't afford to repay. You're just rearranging the timing of when your money leaves your account — and getting paid for the delay.
It works because credit card companies make their money from people who don't pay off their balance. The 0% offer is bait to get you spending on their card, hoping you'll slip up and start paying 20%+ interest. Stoozing flips that model on its head. You take the free credit, earn interest on the float, and pay it all back before they charge you a penny.
The 2020 Opportunity: Why Now Still Makes Sense
You might think low interest rates make stoozing pointless. After all, easy-access savings accounts are paying around 1.3-1.5% at the moment, and even the best fixed-rate deals are hovering around 1.8-2%.
But here's the thing: those returns are on money you'd otherwise earn nothing on. If you spend £500 a month on everyday purchases and redirect that spending to a 0% card, after 12 months you've got roughly £6,000 sitting in savings that would have been gone. Even at 1.5%, that's around £45-50 in pure profit — and with an 18 or 24-month card, the numbers get considerably better.
And if you combine stoozing with bank switching bonuses — where HSBC is currently offering £175, First Direct has £100, and both RBS and NatWest are paying £150 — you're building a proper strategy rather than relying on a single trick.
Step-by-Step: How to Start Stoozing
Step 1: Check Your Eligibility
Stoozing relies on being accepted for a 0% purchase credit card with a reasonable credit limit. Before you apply, use our eligibility checker to see what you might be offered without leaving a mark on your credit file.
You'll generally need:
- A decent credit score (no recent defaults or CCJs)
- To be on the electoral roll
- A regular income
- Ideally, no more than 2-3 credit applications in the past 6 months
If you've been bank switching aggressively, keep an eye on your credit file. Each switch involves a hard search, and too many in quick succession can make lenders nervous. Space them out sensibly.
Step 2: Choose the Right 0% Card
Not all 0% cards are equal. For stoozing, you want:
The longest 0% purchase period possible. The longer the interest-free window, the more time your cash spends earning interest. Right now, some cards offer up to 20+ months at 0% on purchases.
No annual fee. Any fee eats directly into your profit. Most 0% purchase cards are fee-free, but always check.
A reasonable credit limit. The higher your limit, the more spending you can redirect. You can't control what limit you're offered, but a clean credit history and stable income help.
Important distinction: You want a 0% purchases card, not a 0% balance transfer card. Balance transfer cards charge 0% on debt moved from other cards. Purchase cards charge 0% on new spending. For stoozing, it's the purchase card you're after.
Check our live offers page for the best current 0% purchase deals.
Step 3: Set Up Your Savings Account
Before you start spending on the card, open a savings account where your float will live. You want:
- Easy access (so you can pay off the card when the 0% period ends)
- The best rate you can find (currently around 1.3-1.5% for easy access, or higher if you're willing to lock money in a notice account)
- FSCS protection (your money should be covered up to £85,000)
Marcus by Goldman Sachs, for instance, has been consistently competitive on easy-access rates. But shop around — rates shift constantly.
If you've opened a bank account through switching that includes a regular saver (Lloyds, HSBC, First Direct, and others offer these), you might be able to funnel some of your stoozing float into a regular saver at a higher rate. That's stacking strategies — more on that in a moment.
Step 4: Redirect Your Everyday Spending
This is where the magic happens. Every purchase you'd normally make with your debit card, you make with the 0% credit card instead:
- Supermarket shops
- Petrol
- Subscriptions you can put on credit card
- Eating out
- Online shopping
- Bills that accept credit card payment
The money that would have left your current account? Transfer it to your savings account instead. Do this regularly — weekly or monthly — so the cash is earning interest as quickly as possible.
What NOT to put on the card:
- Cash withdrawals (these are almost never covered by the 0% offer and attract fees)
- Gambling transactions (same issue)
- Anything you wouldn't normally buy (stoozing only works if you're redirecting existing spending, not creating new spending)
Step 5: Set Up a Direct Debit for the Minimum Payment
This is non-negotiable. Missing a payment can void your entire 0% deal and dump you onto the standard interest rate — typically 19-23% APR. Set up a direct debit to pay at least the minimum each month from your current account.
Yes, those minimum payments reduce your float slightly. Factor them into your calculations. On a £5,000 balance, the minimum payment is typically around £25-50 per month — a small price for keeping the 0% deal alive.
Step 6: Pay Off the Full Balance Before the 0% Period Ends
This is the critical step. Mark the end date of your 0% period in your calendar, your phone, your bathroom mirror — wherever you need to. Set a reminder for at least one month before it expires.
When the time comes, transfer the full balance from your savings account and clear the card completely. If you're even one day late, you'll start paying interest at the full rate, which will wipe out your earnings and then some.
We've written about the 0% expiry trap in detail — it's the single biggest risk in stoozing and it's entirely avoidable if you stay organised.
A Worked Example for 2020
Let's run the numbers with realistic 2020 figures.
Your situation:
- Monthly spending you can redirect to credit card: £600
- 0% purchase card with an 18-month interest-free period
- Credit limit: £5,000
- Savings account paying 1.5% AER (easy access)
How it plays out:
Each month, you spend £600 on the card and move £600 to savings. You also pay the minimum payment on the card (roughly 1% of the balance, or £5, whichever is higher).
After 18 months:
- Total redirected to savings: ~£10,800
- Minus minimum payments made: ~£600
- Average savings balance over the period: ~£5,100
- Interest earned at 1.5%: approximately £115
That's £115 for doing essentially nothing different except which piece of plastic you tap at the checkout.
Boost it: If you can divert some of your float into a regular saver paying 5% (several are available if you hold the right current account), you'd earn even more. Feeding £250/month into a 5% regular saver alongside your stoozing could add another £40-50 over 12 months.
Stacking Stoozing with Other Strategies
Stoozing doesn't exist in isolation. The real power comes from combining it with other free-money strategies:
Bank switching bonuses: With HSBC offering £175 and RBS/NatWest at £150 each right now, a couple switching together could pick up several hundred pounds in a few months. Check our switching guide for a step-by-step walkthrough.
Regular saver accounts: Many switched-to accounts include regular savers at elevated rates. Feed your stoozing float into these for a better return on part of your money.
Cashback credit cards: Once your 0% period ends, switching to a cashback card for everyday spending adds another small income stream.
The annual cycle: Switch banks, open the regular saver, apply for a 0% card, stooze for the year, pay off the card, repeat. Check how stoozing works for the full picture of how these pieces fit together.
A disciplined approach combining all of these can comfortably generate £500-1,000+ per year from your banking — and that's with rates at today's relatively modest levels.
The Risks (and How to Manage Them)
Stoozing is low-risk if you're organised, but it's not zero-risk. Here's what can go wrong:
Missing the 0% deadline. As mentioned — the biggest risk by far. Set multiple reminders. Pay off the card at least a week before the period ends.
Missing a minimum payment. One missed payment can void the 0% deal. Direct debit solves this entirely.
Spending more than you normally would. The psychology of "free credit" can tempt you to overspend. Only put purchases on the card that you'd make regardless. If you find yourself buying things just because the credit is free, stop immediately.
Not being accepted. You might not get the card, or you might get a lower credit limit than expected. That's fine — you just stooze with whatever limit you're given. Even a £2,000 limit generates some profit.
Impact on future borrowing. If you're planning to apply for a mortgage in the next 6-12 months, carrying a large credit card balance (even at 0%) can affect your affordability assessment. Lenders see the outstanding balance, not the matching savings. If a mortgage is on the horizon, either clear the card before applying or skip stoozing until you've completed.
Who Shouldn't Stooze
Stoozing isn't for everyone. You should probably avoid it if:
- You have existing high-interest debt (pay that off first — the guaranteed "return" of clearing 20% debt beats any savings rate)
- You struggle with credit card discipline or tend to overspend on plastic
- You're about to apply for a mortgage or significant loan
- You don't have the organisational habit of tracking dates and balances
There's no shame in deciding it's not for you. Bank switching bonuses on their own are simpler and often more lucrative for the effort involved — check our live offers page to see what's available right now.
Getting Started Today
If you've read this far and you're thinking "this sounds straightforward enough," you're right — it is. The whole strategy comes down to:
- Get a 0% purchase credit card
- Spend on it instead of your debit card
- Put the saved cash into the best savings account you can find
- Pay the minimum each month, on time, every time
- Clear the full balance before the 0% deal expires
- Keep the interest
Start by checking your eligibility with our eligibility checker, then head to our offers page to compare the best current 0% purchase cards.
Even in a low-rate world, stoozing turns dead money into working money. It's not going to make you rich, but it's one of the smartest things you can do with money you were going to spend anyway.
Common Questions
Do I need a perfect credit score to stooze? Not perfect, but decent. You need to be accepted for a 0% purchase card, which typically means no recent defaults, being on the electoral roll, and having some credit history. If you've been responsibly managing credit for a year or two, you're likely fine. Use our eligibility checker to check without affecting your score.
Is the interest I earn from stoozing taxable? Yes — savings interest counts as income. However, most people are covered by the Personal Savings Allowance, which lets basic-rate taxpayers earn £1,000 in interest tax-free, and higher-rate taxpayers earn £500. Unless you're stoozing very large amounts or have significant other savings income, you're unlikely to exceed this. Check our tax guide for full details.
Can I stooze with a balance transfer card instead? Technically you could borrow on a 0% balance transfer card and put the money in savings, but this is old-school stoozing and it's harder to pull off now. Most balance transfer cards charge a fee (typically 1-3% of the amount transferred), which eats into your profit. 0% purchase cards are cleaner — no fees, and you're simply redirecting spending you'd do anyway.
What happens if my credit limit is really low? You stooze with what you've got. Even a £1,000 limit means £1,000 that's earning interest instead of sitting idle. And if you manage the card well for 6-12 months, you can often request a credit limit increase, making the next round of stoozing more profitable.
Can I have multiple 0% cards running at once? You can, but be sensible about it. Each application involves a hard credit search, and managing multiple cards increases the organisational burden. For most people, one card at a time is plenty. Once you've paid off the first card and the 0% deal ends, apply for a new one and start again.
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