Profiting From Balance Transfer Arbitrage at World Wealth View

Profiting From Balance Transfer Arbitrage

Published by rdash February 22nd, 2007 in general, earning, debt, credit cards

Balance transfer arbitrage is a relatively new technique for making with 0% APR balance transfer credit cards. The general idea is that you get a card with, say, a $5,000 balance transfer, receive the transfer cheque, then deposit that into an interest- bearing liquid investment. If the 0% APR term is good for 12 months, then you cash in your investment before that time and pay off the credit line early.

Balance transfer arbitrage also works if the balance transfer has a low interest rate and your liquid investment interest rate is greater. If you are interested in learning more, Your Credit Advisor has an article on making money with balance transfers.