Arbitrage with 0% Balance Transfers
Interested in screwing credit card companies and earning some money on their dime? Then credit card arbitrage with balance transfers is exactly what you need! See, credit card companies offer these balance transfers as an enticement, they want you to transfer your high interest debt over to them, sometimes for as little as 0% interest for a year and no fee for the balance transfer, because they know that after the introductory period, they’ll be earning the high interest! So, how do you turn the tables on them? Get it and put that money in a high yield bank account (such as one of the many 5% bank accounts out there), earning interest on their money which is costing you 0%, and laugh all the way to the bank!
The steps to arbitrage are very simple…
- Apply for a credit card that is offering 0% interest on balance transfers, here is a handy list of 0% balance transfer credit cards. I recommend the Discover Platinum, Citi Professional (only 9 months but comes with a $100 gift card), Citi Platinum Select.
- Request a balance transfer check, Citi is wonderful for this because you request a balance transfers entirely online and get the check made out to your name.
- Open a high yield bank account, I recommend Emigrant Direct, HSBC, or ING Direct. If you have a Citi account locally, I recommend going with their e-Savings account.
- Deposit the check into your local bank account and transfer the funds to the high yield account.
- Make the minimum monthly payments until the month the transfer expires, then pay off the debt immediately.
