The Credit Card Balance Transfer Game
September 24th, 2007My definition of this game would be: The act of transferring the balance from a credit card to a bank account with the intent to invest or borrow interest-free money. It is also referred to as “0% credit card arbitrage.”
There’s been some debate on how safe “The Credit Card Balance Transfer Game” is. Some people have called it irresponsible and dangerous. While others have called it smart and profitable. I am somewhat open-minded about this subject because I think it can work if done properly and with discipline. However if you’re an over-spender like me, you may end up piling on more debt.
Here’s how it basically works:
1. Apply for a 0% intro credit card.
2. Transfer the available credit from the credit card to your bank account.
3. Now that you have interest-free money in the bank, you can either invest it or spend it however you want.
4. Before the 0% intro offer expires, pay off your credit card in full, or transfer the balance to a new credit card with 0% intro rate. By doing this this, you’ll avoid paying any interest on the money you used.
“The Credit Card Balance Transfer Game” shouldn’t be played by everyone. It generally works best for disciplined people with good credit and substansial liquid assets.
Remember that banks aren’t nice. They exist to make money. Do they want to give you a 0% rate? No, it is their way of attracting new customers. To avoid fees, make sure to pay your bills on-time and don’t go over the credit limit. Defaulting on your credit card, will mostlikely, terminate the promotional intro rate.
January 11th, 2008 at 3:55 am
I liked your description about credit card balance transfer game. The explanation is lucid and precise, which worked well for me. It’s really fun to play such games, even though they might be risky.