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Making Money With 0% Balance Transfers

Posted By Jim On 02/27/2006 @ 11:37 pm In Credit | Comments Disabled

I’m joining the herd, I’m going to do the often mentioned 0% balance transfer [3] game where you request 0% balance transfer, put them in an online bank account [4], and earn a little cash on the side. I’ve written about the downsides [5] in the past but since none of them concern me now, I figured it’s the best time to take advantage of these great opportunities before credit card companies stop offering these 0% rates.

My first card of choice? The credit card because it offers the 0% intro APR on balance transfers for a full 18 months, then the Regular APR, and no annual fee.” I applied entirely online and was approved for a credit limit of $6,600 which amounts to $280.50 (if I put it at FNBO Direct), or $316.80 if I open an HSBC account. (The actual earnings will be less because I’ll be paying taxes and a little bit of the balance each month)

Second card? A credit card that also had the 0% but this time only nine months, but again no balance transfer or annual fee. I was approved for a $4,000 limit which will net me approximately $127.50 pre-tax at 4.25%.

Other have done this and written about it extensively but this will be the first time I’m going to try it. And if you’re curious how these offers are bound to affect your score, Cap at Stop Buying Crap has tracked his FICO score [6] while he’s done these offers.

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[1] Tweet: http://twitter.com/share

[2] Email: mailto:?subject=http://www.bargaineering.com/articles/making-money-with-0-balance-transfers.html

[3] 0% balance transfer: http://www.bargaineering.com/articles/list-of-cards-with-0-balance-transfer-offers-for-12-months.html

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

[5] downsides: http://www.bargaineering.com/articles/pitfalls-of-using-0-percent-credit-card-offers-to-earn-interest.html

[6] tracked his FICO score: http://www.stopbuyingcrap.com/2005/12/16/lowest-score-ever/

Thank you for reading!