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0% Balance Transfer Credit Card Offer Daredevils

Posted By Jim On 05/29/2007 @ 4:00 pm In Credit | 4 Comments

Hmmmm… according to an MSN Money article [3], Bruce of Virginia has $50k in credit card debt that has netted him thousands of dollars in interested because of 0% APR balance transfer credit card offers [4] socked away into high yield savings accounts [5], taking advantage of something that personal finance bloggers have been writing about for years now. Now, it makes you kind of wonder about the whole 0% balance transfer arbitrage game now that it’s hit “mainstream” with articles in MSN Money, tipped off probably on Weston’s Your Money forums, but credit card companies still offer them, often times with no fees.

Only recently did Discover add a balance transfer fee [6] to their transfers, likely because a lot of folks were targeting Discover before Citi, the other balance transfer target; and so you wonder if the free money will come to an end?

Personally, I think the balance transfer arbitrage game is too risky [7] and not really worth the effort (do you really want to have $50k in credit card debt, even if you’re making money?) so I stopped after my first round of offers. However, if you really do want some extra spending money and I don’t mind the hassle, it’s definitely an easy way to make some extra scratch and the steps are pretty straightforward.


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[3] MSN Money article: http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/DaredevilsChaseFreeCash.aspx

[4] 0% APR balance transfer credit card offers: http://www.bargaineering.com/articles/list-of-cards-with-0-balance-transfer-offers-for-12-months.html

[5] high yield savings accounts: http://www.bargaineering.com/articles/top-5-online-banks-savings-or-checking-accounts.html

[6] Discover add a balance transfer fee: http://www.bargaineering.com/articles/discover-no-longer-offering-fee-free-balance-transfers.html

[7] balance transfer arbitrage game is too risky: http://www.bargaineering.com/articles/say-no-to-credit-card-0-balance-transfer-arbitrage.html

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