Is it a matter of having such large borrowing limits that you hit the maximum $ levels fees on balance transfers but it remains a small % of the return?
For example, borrowing on a card with a $50K limit and having a maximum dollar transfer fee of $100 vs the 3% charge (which would equal $1500)?
I have never done this but am contemplating it since I have little to no debt and good credit.

So how do you get money into a CD (or other safe investment) from a credit card? I would not think a bank would take a credit card for payment into a CD.
And cash advance fees on credit cards are way too big to make it work. Doesn’t it have to be cash or check to get a CD? Do they take credit cards?

Thanks for the help!

Great find! Thanks for sharing. Also, note that it looks like it has a 1% balance transfer fee.

https://www.citibank.com/canada/cards/apps/citi/intro.jsp?access_code=V8G

Citi Gold Mastercard

Save money on purchases you’ve already made. Transfer higher interest-rate card balances to our low annual interest rate of 0% until April 2009.^^

Good Luck.

[...] existing debt using 0% balance transfer offers. If you have debt, make becoming debt free a top priority. Moving existing balances to 0% interest [...]

[...] you know what credit card arbitrage is? My Dollar Plan presents 0% Balance Transfer Credit Card Offers providing a list of credit cards that offer this currently and how to make it work for [...]

“I don’t know if it’s possible for Canadians – MDJ looked at it here http://www.milliondollarjourne.....-is-it.htm

and

http://www.milliondollarjourne.....alysis.htm

In the second post he did come up with two banks but the info is from last year so who knows?

I think you just have to keep your eyes open – maybe there are the occasional zero balance offer.

Bottom line is that it’s probably not worth pursuing if you live in Canada (otherwise I’d be doing it!).

Mike”

@ MIT Beta: I usually don’t ask when applying. I like to get the new line and consolidate it with other lines first, that way I can make one big balance transfer.

Since we keep our total outstanding balances at or about 20%, we are actually better off with high limits and lots of card.

I always try to keep the balances to less than 50% on any one card. Never more than 90%.

Of course, our credit scores are also good because we don’t have any adverse impacts: late payments, bankruptcies or judgements. In addition, we have a long credit history and relatively few inquiries.

We haven’t had any problem getting credit. We have qualified for the best rates for credit cards, insurance, and home loans. Although, I am very, very careful to check our credit reports before applying for a new loan to make sure that all the accounts are reporting favorably.

We use a combination of regular loans, our heloc and 0% interest credit cards to finance our house. Here’s the breakdown: credit card arbitrage.

Although all the 0% financing is done to save money on current loans. It is never used to buy things that we couldn’t afford otherwise.

@ Thrifty Femme: Great explanation! You know me better than myself:)

As for the $12,000 – it includes the balance transfer fees. I pay those out of the earnings/ savings. I don’t include minimum payments, because I don’t actually ever really pay them… I just move them to a different card and keep the cycle going:)

**Also, it wouldn’t be right if I didn’t include the “don’t try this at home” disclaimer. When I started the arbitrage 5 years ago, it was much, much smaller.

Since Madison’s been doing this for many years, she likely has some infrequently or unused credit cards with high balances, so her available credit percentage might not be all that bad. The only thing that might hurt is length of credit history and amount of new credit both of which don’t hurt that much.

From my understanding Madison doesn’t need home or a car anytime soon. I think she is looking to refinance, but loan officers look at all monetary accounts in addition to credit scores. If the money she makes from this arbitrage is in a high-yield savings account, it’ll have likely have little negative effects on refinancing.

My question is that $12,000 net earnings after all the minimum payments and balance transfer fees?