Ok, so you know that credit card companies don't stay in business offering zero interest credit cards any more than casinos stay in business offering free gambling chips right?

The only 0 APR Credit Card that STAYS that way, that you can't MESS UP by making a late payment, and where the 0 APR doesn't EXPIRE in a few months is a PREPAID card.

They come as Master Card or VISA cards (you decide) and the 0 APR never goes up because, well, they're prepaid and there never is an APR. Dig?

It's also completely UNSECURED for all you people surfing the web looking for an unsecured credit card. Seems to be a bunch.

Anyway, here's one of many...



What I like about these things is that they let you do business online even if you don't have a checking account.

But now back to your 0 APR Credit Card reveries. Because I know what you really want is how to get free money upfront. Right? Right!

Let's see what's really up with these babies.

This is a true story and is one very good instance in which a 0 APR Credit Card - or a handful of them - might be exactly what you need to get out of a wicked financial mess.

This acquaintance of mine was a stockbroker - so he was used to taking some financial moves that might scare a sane person to death.

As I recall he'd married this chick with - shall we say - a rather icky "social" disease that somehow hadn't been disclosed prior to the Big Day.

Let's just say they didn't get along as well as this couple in the picture...

It turned out that deep purse was not carrying wads of cash either - but rather a huge array of prescriptions to keep baby functioning during the courtship.

As these facts became known during the "honeymoon", this acquaintance decided for his health and sanity to annul the little relationship he'd found himself in.

But momma didn't want to be single again and, well, lawyers take credit cards these days. Lots of credit cards.

Now this dude was a successful stockbroker and was drawing down over $100,000 or more per year from his day job. But the divorce left him with mid 5 figure credit card debts at some awful interest rates.

I told you he's a pretty risk savvy stock broker so he's into some money games right?

Anyway, he gets a series of 0 APR Credit Cards and starts getting his interest rate to 0 APR too.

He keeps paying down the debt, getting new 0 interest rate cards as the old ones have their high interest rates kick in and that's how he whittles his debts down to nothing.

It took a steady hand and someone for whom this is half entertainment, half financial strategy in case things go south.

What can I say? It worked - for him.

That handful of 0 APR Credit Cards paid off!

It makes you feel almost virtuous just to hear about it... Smart guy beats credit card companies at their own game! Sounds just like - well us - right? We're smart and beautiful too right? Ta Da!




Now that the warm, virtuous feeling is wearing off let's get back to reality for a second and ask a question.

Will it work for you?

Maybe if you

1) Have the cash flow already
2) Have nerves of steel
3) Have a disciplined will of iron financially speaking
4) Get a kick out of taking your money in your own hands knowing you could really mess up royally.

Then, just maybe.

Well, as you might have guessed, if you have the money and you DON'T need to buy a new house or a new car in the next 12 months (if you know this for sure, can I borrow your crystal ball?)... you might want to do what some slicksters do and play the arbitrage game for yourself.

Warning: If you do, this little picture might be YOU...

"Arbitrage" is a fancy word for buying low and selling high. Or in this case it means getting a handful of those 0 APR Credit Cards, taking the 0 APR balance transfer and putting the cash in one of those high yield online savings accounts.

The Wall Street Journal talked about recently.

Basically it's half smart money management and half devil-may-care adrenaline rush seeking for people are are a bit bored in life.

But the idea is simple.

You get money at 0% APR.

You put it in a high yield savings account at 6%.

You earn 6% on someone else's money.

You pay back what you owe and keep the 6%.

You very happy.

Credit card companies make nothing because you are SMART!!!!

That's the theory anyway.

As the article points out, one experienced player in this game - I mean "financial strategy" - says to only plan to make $1400 per year. He uses it to pay for vacations. He's kept his day job.

You probably will too, though I know you don't believe that right now. I see the dollar signs in your eyes!

Hazards abound because if you mess up and don't pay the monthly bill on time, your 0 APR Credit Card could be prime interest rate plus monstrosity like fast. It might even trigger all your 0 APR Credit Card rates to skyrocket. These credit card companies talk to each other you know.




Again...

Will it work for you?

Maybe if you

1) Have the cash flow already
2) Have nerves of steel
3) Have a disciplined will of iron financially speaking
4) Get a kick out of taking your money in your own hands knowing you could really mess up royally.

The problem is that the credit card companies are getting wise to this and trying to crack down they say...probably like cigarette companies are trying to help smokers quit smoking, but that's what they say.

They probably aren't doing too much because the bankruptcy laws just made things alot easier on them and they're pretty sure you're going to mess up and trigger those massive interest rates.

So should you do this?

Probably not.

Really.

But hey, you didn't get to this lens because you swore off the idea before hitting the net today did you?

You probably think you can get away with this...and maybe you can.

I gave up illusions about me being so smart and disciplined a long time ago though.

But if you really are different than 98% of the undisciplined population, you will find there are websites that are designed to (make money and)"help" you play this game.

One of them is App-O-Rama. There are probably others. And they're honest that you shouldn't be playing this game unless you're a real pro. But just to be honest - just click that link for your own information purposes. Many people aren't going to be better off after trying this.

Go back and read that Wall Street Journal article.

OK, here's probably the best reason for getting a 0 APR Credit Card. It's still got its pitfalls though: A Student Credit Card!

It might make sense for a student just building their credit rating to look into getting a 0 APR Credit Card or Low APR Credit Card. That's supposed to help them build their own credit rating for themselves.

What might happen is that you mess your credit up forever at age 18 - or not.

Do you notice how discipline has a nasty way of creeping into all these 0 APR Credit Card scenarios?

But if you're disciplined... you might want to check out a Student Credit Card though I don't think most have 0 APR. Sorry.

That's a game you may have to wait to play.

Or might not want to play at all.

It may be better just to go ahead with those prepaid debit cards!

You know the credit card company with the commercials about the barbarians? They used to talk about how their low APR credit cards stayed low?

Well, when I got one once and ran into a little short term misfortune, I found who who the real "barbarians" were!

Oh well, at least the commercials were funny if completely untrue!

When this happens to YOU, you may get a bit testy like the lady in this picture, but please don't start playing Annie Oakley. You'll just get yourself in a worse situation!

So what should you do?

Okay, first of all like chill out. It may not be that bad yet. If this is your first and only credit blunder, then you may be able to get things under control pretty quickly.

Here are some of the factors that go into making up your credit score...

Basically if this is a one time, short term foul up, some simple credit tips ought to work pretty fast and get you back on track.

If you've been playing the App-O-Rama game, overnight your one foul up could send all 0 APR credit cards into cardiac arrest!

When that happens, it's too heavy for this lens baby! You probably need some professional financial help!

Here's a lens with some links to the Federal Trade Commission and stuff that you might want to check out too.

Hey, did you notice that this all goes back to that stuff about this works...

"Maybe if you

1) Have the cash flow already
2) Have nerves of steel
3) Have a disciplined will of iron financially speaking
4) Get a kick out of taking your money in your own hands knowing you could really mess up royally."

The dude in this picture is like shocked that you're still thinking you're going to get rich with that 0 APR Credit Card!