If you’re like me you are probably solicited from credit card companies all the time and are tempted to take advantage of their teaser rates. Well, not only can you get great rates on credit cards these days but you can make money from them! That is, if you have a decent credit rating and are approved for a credit card (CC) with 0% APR on balance transfers for up to 12 months.
Here’s how it works:
- Find a CC with 0% APR on balance transfers for at least 12 months
- Research the CC and read the fine print to verify there are no catches
- Open a money market account or 5.05% HSBC Direct savings account
- Submit the application for your CC
- After activating your credit card, transfer the balance to your HSBC account
- Make all your minimum payments on your credit card on time
- Before the 12 months is up, return the entire amount to your CC account
I haven’t tried it myself but the guy at MyMoneyBlog and many of his readers have. His site has a great plethora of information about this including step by step instructions, which CCs to use, and how to continue doing it. Is it legal you ask? Not only is it apparently legal but you can actually deduct the credit card interest and balance transfer fees used for these investments as an investment expense on your taxes. So what’s stopping all of us from doing this? Well, I don’t want to have $10,000 in debt hanging over my head for an entire year just to make an additional $200-$500 bucks. Also, if you are thinking of purchasing a home within the next few months or year, you don’t want to take any chances that may prevent you from getting the best possible interest rate on your home loan. Other than that, I’d say go for it and let us know how it works out for you.If you liked this article, please take this time to share it with your Facebook friends using the Facebook button (see Facebook post button to the left) or retweet it using Twitter (see retweet button to the left). You may also want to follow us or subscribe to the site to stay up-to-date with this article. If you'd rather follow us from your Facebook account, join our Facebook fan page or subscribe to our NetworkedBlogs profile.
Please Tweet, Bookmark, or Share This Free Content Using These Services: