We’ve known for a long time that 0% balance transfer cards offer us access to some of the cheapest credit we will ever see (if we use them the right way). Stoozing and other similar practices developed precisely because of the cheap debt that balance transfer gave us. But, as saving rates have diminished, thanks to record low BoE interest rates, so the fees charged to transfer a balance have become an ever bigger consideration for stoozers. But, could that be changing?
As the teaser lengths on balance transfer deals have skyrocketed over recent years, so competition on other elements of balance transfers has become more intense. First, we had low or discounted fee credit cards. They offered a shorter balance transfer period than table-topping deals, but the low fee meant that people who could quickly clear their balance would save. As fees were discounted lower and lower, so emerged the fee-free transfer.This effectively gave people access to free credit.
Currently, there are four credit cards offering fee-free balance transfers of two years or more at 0%.
- Halifax Credit Card
- Barclaycard Balance Transfer No Fee
- Virgin No Balance Transfer Fee Credit Card
- Tesco Bank Clubcard with No Balance Transfer Fee
The existence of these products means that even in a very low interest environment, some money can still be made through stoozing.
Alternatively, people expecting to clear their balance within two years will find that they can save a considerable amount compared to standard 0% transfer products (some of which have fees topping 4%) by using these cards.
So will fee-free balance transfer cards prompt a return to heady days of stoozing? Well, not just yet. Savings rates are so low that it is relatively unproductive for the effort incurred. However, these cards are now a popular fixture within the credit card space, and look unlikely to disappear any time soon, so when savings rate do eventually increase they will become the stoozers cards of choice!