In the video “Stoozing vs Cashback”, Money to the Masses explores two distinct strategies for leveraging credit cards to earn money—stoozing and cashback rewards—and explains which one makes more sense in 2025.
1. What Is CashBack and Why It’s Easy
Cashback is the familiar strategy of using a cashback credit card for everyday expenses—like groceries, bills, and dining—and getting a small percentage (often 0.5–5%) back.
The key benefits:
- You only earn cashback on real spending you already planned.
- No credit juggling required.
- Must pay your credit card bill in full each month to avoid interest charges that wipe out gains.
Third-party platforms like TopCashback, Quidco, or Airtime Rewards can be layered with cashback cards to further increase returns.
2. What Is Stoozing and How It Works
Stoozing is an advanced, higher-effort strategy. It involves:
- Getting a 0% purchase or balance-transfer credit card with a long interest-free period.
- Using it for regular expenses, but transferring the equivalent amount into a high-interest savings account.
- Paying only the minimum due monthly on the credit card.
- By the 0% period’s end, repaying the card from your savings—keeping all the interest earned.
For example, if you borrow £5,000 at 0% for 12–21 months and stash it in a savings account yielding 4–5%, you could earn £200–£500 interest without risk—provided you repay on time.
3. Stoozing vs Cashback – Which One Wins?
It depends on your situation:
| Criteria | Cashback | Stoozing |
| Complexity | Simple—use and pay monthly | Complex—requires tracking card dates, savings balances |
| Effort | Low | High—requires discipline |
| Returns | Typically 1–5% on spending | Savings interest minus minimal fees; potentially 3–5% annually |
| Risk | Minimal if paid off monthly | High if you miss repayment or overspend |
| Credit impact | Builds score if used responsibly | Can boost utilisation and affect future borrowing like mortgages |
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4. When to Choose Cashback
Choose cashback if you want:
- A no-fuss way to earn rewards on everyday spending.
- Minimal financial juggling or risk.
- A tool that simply gives you money back for purchases you would make anyway.
Cashback systems are reliable and easy—just remember to clear your dues each month.
5. When to Choose Stoozing
Stoozing might make sense if:
- You are highly disciplined and organized.
- You have a large monthly buffer to cover credit card minimums.
- You qualify for top-tier 0% credit card offers and high-yield savings accounts.
In that case, you can earn free interest income—but be aware stomping and credit usage might impact your future borrowing plans.
Final Takeaway
Cashback remains the most reliable and beginner-friendly way to earn money using a credit card. It delivers modest rewards safely if you manage payments well.
Stoozing can be far more rewarding, but only suitable for disciplined users with stable finances. One misstep—like missing the zero-interest deadline—can erase your gains and hurt your credit.
Choose cashback for ease and consistency. Opt for stoozing only if you fully understand its rules and risks.
For more credit card strategies, personal finance optimization, and investment insights, explore Investment Marg. Broader lifestyle and money-saving content is available at InkSpireDaily.
FAQs
Q1. Is stoozing legal?
Yes. Stoozing is simply using a legitimately offered interest-free credit period and maximizing savings returns.
Q2. Can stoozing damage my credit score?
It can—high credit utilisation or missed payments during the 0% period may affect your creditworthiness.
Q3. How much can I realistically earn from stoozing?
With £5,000 borrowed at 0% and a 4% savings rate for 12–18 months, you could earn £200–£300 in interest .
Q4. What if I drink from my savings and miss the repayment?
Then the strategy fails. You’ll lose the 0% benefit, start accruing interest, and damage your credit history.
Q5. Which is better for most people?
For most, cashback is safer and easier. Stoozing offers more profit but carries higher risk and requires strict discipline.
Credits to: Moneytothemasses
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