Balance Transfer Arbitrage
Have good credit and don't carry credit card balances? Why not make money with your credit cards? In a couple simple steps you can have your credit cards working for you.
Balance Transfer Arbitrage
Make Money With Your Credit Cards
Yes, you read it correct. You CAN make money with your credit cards. It's not a get rich quick scheme but who doesn't like extra money? Here's how it works:
1. Find a credit card that offers 0% Balance Transfer for as long as possible. I like the Blue from American Express. They offer 0% APR for up to 15 months.
2. Request a balance transfer check. This can be done by calling customer service or, in most cases, it can be done online.
3. Write the check out to yourself for the entire credit card limit. Note: Some credit card companies don't allow this. In which case, you'll need a second credit card to transfer the balance to. For this I'd use the Advanta Life of Balance Platinum. If you transfer a balance in the first 3 months there's no fee. Thereafter, it's still low (you won't be paying interest anyways).
4. Deposit the balance transfer check into a high yielding savings account or other liquid investment (you want to be able to get at the money to make the credit card payments). Online savings accounts tend to pay higher. I like the one listed below:
5. Let the money sit and collect interest while you make the minimum payments ON TIME every month. NOTE: You must make your payments on time. Maybe even early just to be safe. If you default then you lost the 0% APR.
1. Find a credit card that offers 0% Balance Transfer for as long as possible. I like the Blue from American Express. They offer 0% APR for up to 15 months.
2. Request a balance transfer check. This can be done by calling customer service or, in most cases, it can be done online.
3. Write the check out to yourself for the entire credit card limit. Note: Some credit card companies don't allow this. In which case, you'll need a second credit card to transfer the balance to. For this I'd use the Advanta Life of Balance Platinum. If you transfer a balance in the first 3 months there's no fee. Thereafter, it's still low (you won't be paying interest anyways).
4. Deposit the balance transfer check into a high yielding savings account or other liquid investment (you want to be able to get at the money to make the credit card payments). Online savings accounts tend to pay higher. I like the one listed below:
5. Let the money sit and collect interest while you make the minimum payments ON TIME every month. NOTE: You must make your payments on time. Maybe even early just to be safe. If you default then you lost the 0% APR.
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Credit Related Books
Finance Websites and Blogs
- Credit Card School
- This site has loads of information on credit cards. You can find credit cards by type, issuer, etc. and apply right online.
- Mortgage Super Search
- This site has a lot of good articles that explain mortgage types. They seem to be invesment oriented in an "investments for dummies" sort of way. Worth a look if you're buying, refinancing or are just curious about mortgages. There's a ton of calculators for every different mortgage scenario as well.
- Credit Card Blog
- This is updated twice weekly. There's some good articles on choosing the right credit card for certain situations. I got the information for this lens from that blog.
- Mortgage Blog
- This is the blog for the Mortgage Super Search Website. It seems as though some of the blogs end up as site content, eventually. Again, worth a look if you're at that stage of the game.
