A BBC finance expert has outlined a strategy by which credit card holders from major UK banks-including M&S Bank, TSB, Lloyds, Tesco Bank and HSBC-could potentially turn a profit through a method known as ‘stoozing’. Laura Pomfret, a financial expert, appeared on BBC Morning Live to explain how some individuals may earn hundreds of pounds by making use of credit cards offering 0% interest rates alongside high-interest savings accounts.
Ms Pomfret emphasised that while the technique can be effective, it requires careful adherence to certain guidelines and a great deal of discipline. Using a £3,000 sum as an example, she described the approach in detail.
“Stoozing is a financial hack that some people use to earn money by exploiting 0% credit card offers,” she explained. “Essentially, you use a 0% credit card to pay for your everyday purchases, and instead of spending your cash, you deposit that amount into a savings account to earn interest. When the 0% interest period on your card ends, you use the accumulated savings to pay off the credit card balance, effectively pocketing the interest earned.”
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The term “stoozing” originates from the username of the individual who first shared this method on a financial forum. Ms Pomfret noted that the strategy works best when 0% purchase credit card deals coincide with high-interest savings opportunities.
She cautioned viewers to be extremely organised and follow a set of specific rules to benefit from this method effectively. “Firstly, you need to find a savings account offering a competitive interest rate-ideally around 4.5% to 5%-to make the effort worthwhile. Secondly, you must use a 0% purchase credit card rather than a balance transfer card, as the goal is to spend on everyday items without incurring interest.”
Ms Pomfret advised using the credit card for routine expenses such as groceries and fuel, where spending tends to be regular and substantial, rather than for one-off large purchases.
Crucially, when the credit card statement arrives, she recommended paying only the minimum amount due, rather than clearing the full balance immediately. “By paying the minimum, you maintain the balance on the card while placing your cash savings in the high-interest account,” she said. “Each month, you repeat this cycle, building your savings alongside the outstanding credit card debt until the 0% offer expires. Then, you repay the debt in full using the saved funds, and ideally, you are left with the interest earned.”
Ms Pomfret added that this method could be applied by managing multiple credit cards simultaneously, although she warned that this increases risk and requires careful financial management.
Using her example, if £3,000 is spent on a 0% purchase credit card at the beginning of the year and simultaneously placed in a savings account, a person could accumulate approximately £150 in interest over 12 months, assuming a 5% savings rate. “When the promotional period ends, you pay off the card using the money saved, and the £150 interest is your profit,” she explained.
Host Holly Hamilton described the strategy as potentially “high risk,” to which Ms Pomfret responded by highlighting the necessity of strict compliance with credit card terms. “Missing payments or changing banks could lead to losing the 0% deal and incurring high interest, which would eliminate any gains. Additionally, missing payments can damage your credit score,” she said.
She acknowledged that the approach requires ongoing effort and vigilance, especially to sustain it over longer periods where the returns might not be substantial. “There is quite a bit of effort and stress involved, with returns that may not always be significant,” she concluded.
Individuals considering this strategy should carefully assess their financial discipline and understanding of the risks involved before proceeding.