BBC Expert Explains How to Profit from 0% Credit Cards with £3,000 Rule

A BBC finance expert has revealed how credit card holders from M&S Bank, TSB, Lloyds, Tesco Bank and HSBC could potentially make a profit using a technique known as ‘stoozing’. Laura Pomfret appeared on BBC Morning Live to explain how individuals can save hundreds of pounds in interest by taking advantage of 0% interest credit card offers.

Pomfret explained that “stoozing” involves using a 0% interest credit card to pay for everyday expenses while placing the equivalent cash amount into a high-interest savings account. Over time, the interest accrues in the savings account, and when the 0% credit card term ends, the accumulated savings can be used to clear the card balance, effectively allowing the cardholder to pocket the interest earned.

She illustrated the method with an example using £3,000: if someone spends this amount on their 0% purchase credit card and deposits £3,000 into a savings account simultaneously, they can accrue around £150 in interest over a year while only paying the card’s minimum monthly payments. When the 0% period concludes, the card balance can be paid off using the saved amount, leaving the earned interest as profit.

However, Pomfret emphasised that the approach requires rigorous discipline and organisation. She outlined key rules for success:

Utilize a high-interest savings account offering rates around 4.5% to 5%.
Use a 0% purchase credit card (not a balance transfer card).
Spend regularly on the credit card, ideally on everyday items such as fuel or shopping.
Pay only the minimum credit card payments during the 0% term to maintain the interest-free balance.
Consistently transfer the equivalent funds into the savings account.

Pomfret warned of potential risks, including the importance of not missing credit card payments as this could cause the loss of the 0% interest deal and damage credit scores. She noted that although some may consider applying this strategy across multiple cards, it increases risk and requires careful management.

BBC Morning Live presenter Holly Hamilton remarked that the technique might be seen as high risk due to the necessity of strict adherence to terms and the need for sustained effort. Pomfret agreed, stating that the strategy demands significant commitment and may not yield large returns relative to the effort involved.

In summary, while stoozing can be a useful financial hack for disciplined individuals, it is important to understand the rules and risks involved before attempting this method.