If you want to make 'free money' from your credit card it is possible thanks to the large number of credit cards on the market which charge 0% on new purchases.

Method 1

• Use a 0% purchases card to pay for everything you would be buying as normal with your debit card
• Only pay the minimum repayments each month on the credit card
• Every time you purchase on your credit card transfer the same amount from you current account to a savings account thus allowing all incoming money to accrue interest

Following this technique will earn you interest on your savings, allowing you to pay off the credit balance when the 0% purchase deal has ended. By setting the money aside each month it ensures that if anything was to go wrong you have the money available straight away.

You should only do this ‘trick’ if you don’t have credit card debt and have a good credit card rating. Similarly it is vital that you are organised and will remember to shut down your account when the 0% benefit has ended. Do not overspend on the card thinking of it as 'free money', as the benefits of using this technique will disappear even if you only incur an interest charge once. There are a lot of different cards offering the 0% purchase rate but the duration of the offer does differ:

Method 2

‘Stoozing’ is making money from your credit cards by taking the available 0% interest balance and placing it into a high earning savings account. The interest gained via this method is effectively ‘free money’. The majority of cards will charge you a fee to transfer a card balance into a current account.

For calculations in relation to the interest which could be earned, consult the online calculators on whatsthecost.com or stoozing.com.

The credit card company may require  a debit on the account, so check the terms and conditions before finalising your application.

Method 3

A final way in which to make money from your credit card is to pay your credit card on the last possible date prior to incurring interest, thus allowing you to keep the money in your current account for longer. This means that the money is earning you interest for longer by remaining in your account. Not all credit cards have the same interest free credit period – some cards can be as little as 31 days, whereas some are as long as 56.