How To Make Money From 0% APR Balance Transfer Offers

Making money from a 0% Credit Card offer, is to borrow money at a low rate(0%) and earn money on it at a higher rate until the introductory low-rate borrowing term has expired. Doing so, means you are hedging two seemingly opposite transactions so as to make a guaranteed profit at a zero risk. To get started you need to find credit cards that offer 0% APR(This rate is usually only valid for a transfer of debt, not purchases.) Why do banks do this? They are enticing you with easy credit for the sole reason that if you dont pay off your balance in time, they will start charging interest. But if you properly take advantage of low rates, you can come out ahead. It may not be a lot without high balances, but even a few hundred dollars per year at no risk can be worth the effort.

Borrowing money from credit card companies is not for everyone. Remember your credit score at any time, reflects the number of credit card you have, the credit utilization, amount of balances borrowed, your current balance payment habits and others. Every time you apply for a new credit card and do a balance transfer your credit scorer will go down by a certain amount. In general if you have a good credit score, pay off your balances regularly, not planning to make a big investment in the future, you may be ok to go ahead. However, the following three types of people, in general, should stay away from this scheme:

1) - You Have A Poor Credit and/or Carry Large Balances Regularly If you have a poor credit score or carry balance on your credit card regularly its better you stay away from this scheme. First of all, if you have poor credit, you probably cant get a really low interest rate anyways. Second, you probably have shown that you cant handle credit responsibly and very likely may just pile on additional debt by doing these activities. To summarize, if you dont pay off all your statement in full every month and regularly pay credit card interest, this may not be for you. You might just accumulate more debt.

2) - You Need A High Credit Score Top Soon Remember, as mentioned earlier, doing this scheme will reduce your credit score. If you are shopping for a mortgage or planning to apply for one, in the near future, youll want to keep your credit score as high as possible. When applying for a mortgage, many lending institutions will not only pull your current credit score, but a several year history of your score. Then, using the current plus historical data, they generally measures what level or credit risk the potential borrower is. The good news is that once you complete the credit card payment in full, your credit rating generally will go up.

3) - You Forget To Pay Bills Regularly. If youve paid more than one bill late within the last year, this may not be right for you. Credit card companies love it when you pay late. They can charge you late fees and jack up that nice 0% rate to 20%+ instead. You can probably get one late payment forgiven once in a while, but dont push it. Now, there are lots of tools to remind you about payments and also automate that process, but some people just dont keep up with their bills all that well.

Action Steps:

1) Find a 0% APR Credit Card.

Look closely at different mailings you receive for credit card offers, the weekend section of your local newspaper and or do a google search online, you will find many 0% APR Credit Card offers. A typical offer, is 0% APR on Balance Transfers until 2007! where the date given is typically 8-15 months in the future. Also, keep in mind the longer the balance transfer offer lasts the more you can make, hence 12months or more is a better option. Once you have a 0% Balance Transfer credit card offer, you need to review the fine print to make sure there are not any catches with the offer. The biggest catch out there in a small balance transfer fee typically 3% (but varies with each credit card company).

You want to make sure there are no balance transfer fees other fees associated with taking out a balance transfer. (Note: You can still profit if some of these fees are in the offer, but since these offers are frequent, it is wiser to wait for a better offer).

Once you are satisfied with the credit card terms and conditions ask the representative to do a money transfer to your bank or to send you a check for the cash advance.

2) Now that I have the 0% balance transfer, what do you do with it?

The whole reason you are doing this is to earn money, so this is a very important step. Find highest-yielding risk free investments and invest in them for a term less than the maximum term of your 0% APR Credit Card. Most of the safe investment options gives 5% or more interest rate. Hence if you can execute things in the right way, you are looking at a profit of 5% or more. On an investment of $15000 you can potentially make more than $750. Remember, if lets say your credit card 0% APR term was for 12 months, you should make investments for a span of less than 12months, lets say a 9 month CD at 5.25% APR.

Here are some suggestions:

A) Online high yield savings accounts such as HSBC Direct, ING Direct, or EmigrantDirect.

B) Short term treasury bills on TreasuryDirect.gov.

C) Short term CDs such as a 6-month or a 9-month CD.

D) High-interest, short-term US treasury bills.

Stay away from stocks, mortgages, etc.

3) Start Repaying the Credit Card Debt.

Once you identify your investment vehicle, you must immediately invest the borrowed money from the credit card into it. Next you must set up an automatic monthly payment for your credit card. Make sure you pay a little more than the minimum due, this helps to keep your credit score at a slightly better level.

4) Timely repayment of credit sources.

At the end of your term, when your CD matures, you should pay back your credit balance on time. Withdraw investments a monthly early, before your Credit Card 0% APR expires, for safety. Not making your payments on time can cost you late fines thatll put a dent in your profits. (Read the fine print on each offer.) In fact, make payments on the balance immediately, if possible even if its a small amount each month, to reduce your total payout at the end. Else you run the risk of flipping over into the much higher interest rate on the balance.

Learn More here: http://howtoearnamilliondollars.com

I am Rich George and I will share ways to Make Money Online. I have been able to earn a significant amount of extra income, following the various schemes mentioned here. I want you to be able to do this also, by following my existing and upcoming new ideas. Good Luck!