The days of the credit crunch and the ensuing financial troubles keeping you on tender hooks are over. There are many innovative ways to counter the credit issues and make money out of nothing.
If do not know any techniques for how to get money off a credit card, then this article is for you. Though this concept has been used for over a decade, it has comeback with a bang now. Financial customers borrow money with their credit card and deposit the cash with some other institution at a higher rate of interest. This gives them a higher return without having to spend anything out of their pocket.
Though it’s not necessarily a way to get money fast, it does have its rewards for the patient. Here’s how to do it.
How to Get Money off a Credit Card Using Stoozing:
The process is a highly crafty move where customers search the existing credit card offers provided. There are many deals that offer 0% interest as introductory offer so they can grab new customers easily. This is known as ‘stoozing’.
The customers take the money and deposit it in an account that pays them the highest interest rates. The only thing the borrower needs to worry about here is repay the money before the introductory offer expired.
If the procedure went on smoothly, the borrower gets to earn the interest money without having paid anything from his pocket.
Is It Legal and Possible?
Making money from your credit card in this way is allowed and legal too. It is also a good way to increase the credit score.
Since the economy is on the recovery path, there are many credit card companies who offer the lucrative 0% offers and the time span is also more.
For earning a profit, the credit cards should have the facility of transferring the money to any current account or bank account you have from which you can get the interest money.
If the savings rate offered by the banks is high you can easily make a decent profit out of the process. By doing some thorough research, you can find the right credit card offer and the bank to pull this off.
Selecting the Appropriate Credit Card:
The first step in the process of making money from the credit card is by selecting the appropriate credit card. You can find the rates and deals offered by the various cards either in the newspapers or online. Do a complete search and compare the rates.
Remember that you are looking for an interest free offer and not the rate for balance transfer. If you look deep, you can also find cards that come with rewards that further increase your earnings.
Credit Score Matters:
There is one glitch in this process. You should have a good credit score for the card to be issued. The providers usually have their own eligibility requirements.
So if you are not accepted by a particular provider, there will be others who have a lenient policy. If on the other hand you do have a good score and a reasonable income, the card will be issued readily.
Using the Card:
Once your credit card is approved and you receive it, you should have a direct debit in place to see to the payment of minimum amount of balance.
This is vital as even if you are not charged interest on the purchases you do, the monthly minimum payments ensures that the credit score is unaffected.
Setting Up a Savings Account:
When you apply for the card, you should also find an appropriate savings account. An account that has the highest interest rates and is easy to set up at short notice is the best choice.
You can plan on how much you can save by calculating the amount of money you spend using the card, the payment you need to make and the transferred amount.
Things to Consider:
After you start spending on the card here are some things you should do
- Since the zero interest span is only for a short time, you need to spend more during the initial part to earn a sizeable amount. Doing the larger part of all your shopping with the card will give you more amounts to save.
- After you have seen to the monthly minimum payment, transfer the remaining amount to the account you have set up. When done regularly all through the statement span increases the returns greatly.
- Once the free interest ends, you can pay the balance with the savings that you have built. This will avoid any interest on the card use.
- After clearing the balance, you should stop purchasing with the card. After a month’s time, you can cancel it.
Now you can start from the first again by finding a new card with 0% interest. You need to be careful while using the card and not overspend as it will complicate matters, and you will end in debt instead of earning profits.
If you know how to get money off a credit card, it is an excellent way to get a profit. But you need to be financially disciplined and do the entire process in the right manner.
Also make sure you do not miss on making the payments as it can cancel the 0% deal and you will be faced with high interest rates. Pay your bills and plan well to see good profits.
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