More credit card arbitrage
| In an effort to earn a bit of extra money to pay down our debt, I've been participating in a little credit card arbitrage extra credit. So far it has been a worthwhile endeavor, I've increased our 0% BT money by over $100,000 to almost $200,000. We should be earning about $600/month in interest on the free money, which means I'm upping my monthly debt repayment goal from $1,500 to $1,800. Most of the new money is for shorter terms, some as little as six months (I long for the days of 15 month 0% deals from Chase), but with $35,000 credit lines it is still worthwhile for us to pursue. In six or seven months we will just rinse and repeat. Labels: $37k debt payoff, 0% BT, app-o-rama, cheap money, debt |
posted by savvy at 9/15/2007 07:21:00 AM
Comments on "More credit card arbitrage"
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2million said ... (2:22 AM) :
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savvy said ... (6:00 AM) :
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Tiredbuthappy said ... (5:06 PM) :
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Brian said ... (3:09 PM) :
post a commentsavvy -- $200k in 0% bt? That seems extreme even to me.
I assume most of these have balance transfer fees?
I think its great to bring in an extra $600/mo but what is the net after fees? If you are still bringing in $500+/mo I guess I need to rethink my strategy and step it up :-)
We only take advantage of balance transfers that are either free or capped at $75. A $20,000 balance transfer with a $75 fee pays for itself in the first month.
Wow, that is just amazing. I have pretty good credit, but all my limits are pretty low, so it hasn't seemed worth it to me to do the BT thing.
Maybe I should work harder to up my limits. How did you get such high limits? Is it because I don't carry a balance that none of my credit card carriers will give me a higher limit?
(my limits are at around $10K or lower. I have 3 open cards).
Like your blog Savvy and happy to see you back discussing and tackling more financial issues.
We have good credit, wife and my fico's north of 760, but I'm not seeing any BT offers without a transfer fee. Any cards or sites to check them out you recommend - I think I want to to start doing this aggressively as well after that $600k/month figure you mentioned jumped out at me.