How To Do Credit Card Arbitrage

“Credit Card Arbitrage” is when you take out a 0% balance transfer check from your credit card use it to make money. Here’s the basic gist of how to do it, and some of its dangers.

1. Request a balance transfer check from your 0% balance transfer credit card.
2. Put the money in a high-yield savings account or high-yield investment.
3. Pay the minimum balances on the cards (even better, set up the account from step 2 to auto-pay the bill).
4. Before the 0% trial period expires on each one, pay it off in full from invested/banked cash advanced.
5. The remainder is your profit.

DANGER: Don’t do this if you
• Care that that your credit score will take a nose-dive afterwards (if you do app-o-rama where you apply for several of these cards at the same time)
• Are carrying debt or have a bad credit score.
• Have a low-tolerance for poring over and obeying fine-print terms and agreements.
• Can’t stay anally on track of the whole process. Miss a payment or slip up on a rule and your rates can skyrocket.

If you don’t have one, here’s a list of some 0% transfer cards, and a primer.

Personally, though, we don’t think it’s worth the effort or risk. — BEN POPKEN

RELATED:
0% daredevils chase ‘free’ cash [MSN Money]
Making Money With 0% Balance Transfers [Bargaineering]
(Photo: Spidra Webster)