Comments on: 0% Balance Transfer Credit Card Arbitrage in Action

By: Rich Schmidt

Rich Schmidt — Sat, 19 May 2007 01:54:57 +0000

Joel said, “Of course, you must never use the card once you get the balance transfered in”

That’s not always true. I’m doing this now with a Miles reward card from Discover, and the 0% APR offer applies to both balance transfers AND purchases. In fact, if I make at least one purchase during each billing cycle, I get a bonus 1,000 miles/month.

But with most of these offers, you’re right. If you make a purchase, they’ll charge you that high interest rate on it… and they’ll apply your payments to the LOWER APR balance (your balance transfer money) FIRST. It stinks, but it’s how they make their money…

By: Joel

Joel — Wed, 18 Apr 2007 01:13:24 +0000

I have the minimum payment made automatically from my checking account.

Of course, you must never use the card once you get the balance transfered in

By: Hustlermoneyblog

Hustlermoneyblog — Fri, 19 Jan 2007 18:12:58 +0000

great list. I’m writing about this 0% apr BT game right now.

By: Tinyhands

Tinyhands — Fri, 19 Jan 2007 14:27:53 +0000

I recently did the same thing with a new AmEx offered by USAA. I borrowed $12k at 0% for 12 months.

As Blaine points out, it could be easy to make a costly mistake though. As long as I pay the 2% minimum every month and pay off the balance at the end of the 12 (or transfer it, as I will probably do) I’ll be alright.

By: Blaine Moore

Blaine Moore — Fri, 19 Jan 2007 14:15:52 +0000

I don’t expect the 5%+ rates in savings accounts to last much longer, and having that much credit debt that could shoot up without me noticing because somebody makes a mistake in another account of mine is more risk than I’d be willing to take at this point in my life.