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Credit cards equal debt, it's almost a universal truth. Almost.
It is possible, and is being done right now, to turn a profit from 0% credit cards.
Before we get started here are some things you need to realise before you even attempt to profit from these 0% interest credit cards.
1. It's no use making small percentage profits when you are already paying out large interest on debts elsewhere. Clear your debts first if you have any apart from a mortgage.
2. You will need to be vigilant on the 0% periods expiry, most will be 6 months, and you need to make sure you pay the money back then.
3.You need to be able to forget you have the money you borrowed on the credit card, and not dip into it for any reason.
4. You will need a good credit score from the start of this venture or it won't happen at all.
Now with those little caveats out of the way, we can get to the meat of the idea, and profit from those credit card companies.
Firstly you will need to find a credit card with a 0% interest rate for at least six months, some even offer up to nine months 0% interest. Then you need to apply for it, and wait.
You will also need either a loan or another credit card you can draw up to the limit of your 0% card on. Now here comes the science bit.
Pay the limit of the 0% credit card into a bank account by drawing it as cash or direct transfer, and immediately use the 0% card to transfer the balance to the other card to make it paid up.
The money you just got out can be placed into a high interest savings account. Leave it there until you have to pay up the 0% card at which point you will still only owe the original amount you transferred onto it. You will have made interest on the money while you had it and owe 0% interest.
If you have a real clean credit history you could even transfer the balance from another o% interest credit card to the first one, and leave the money earning interest in the savings account.
This is only meant as an informational overview, and you will need to research the credit cards and relevant laws in your own country or state. Here in the UK a few savvy people are using 0% interest credit cards to make them a nice sum, and as long as you remember the few simple rules at the beginning of this article you could too.
About the Author:
Douglas Titchmarsh also runs a credit and debt information site at http://www.cashinonline.info/credit
and a newsletter at http://www.thediscountebookstore.com/gep
Source: www.isnare.com
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