When you hear the term "credit card", you instantly think about spending money or paying fees to card issuers. Most folks use their credit accounts to buy all kinds of things they don't need or want. Many others use their cards to pay down their debt, and lower their interest fees. But what most folks don't consider doing is making money with credit cards.
Unlike what credit companies want you to believe, making money with credit cards is very much possible. Credit arbitrage has been around for years, and folks have used various tactics to make easy money. The challenge with credit arbitrage is the fact that you need to be ultra careful and very responsible in paying your bills on time.
0% balance transfer credit offers are the best offers to use to achieve arbitrage. These cards allow you to transfer balances to your bank account and get started with your investing process as soon as possible. In general, you should look for offers that come with 0% APR on balance transfer or cash advances, and have the lowest fees possible.
One you have managed to secure the money from your card, you should try to invest it in a high yield investment to make "free" money. Investing in a high yield saving account is the easiest way to go. You may be able to earn as high as 5% back with your bank account. But depending on your risk tolerance, you can invest your funds in stocks, money markets, and bonds to earn more.
Your goal should be to maximize your investment opportunities. You can hedge your risks by diversifying your investments. You can invest 50% of your funds in a high interest savings account. You can use 20% of it on the stock market, and another 20% on bonds. Finally, you can invest 10% in FOREX markets.
There are thousands of different ways that you can invest your money to earn more. But it all comes down to your "risk averseness." The funds you borrow need to be paid back to your cards, so you want to make sure you protect yourself against volatility in investment markets. You also want to have funds on hand to pay your minimum monthly payments.
Credit card arbitrage is not for everyone. While the money is for free, you will need to be very diligent with your financial affairs. You need to pay your bills on time and have a system that keeps you on track with your due dates. You should also monitor your cards for sudden rate increases. Once you have mastered this process, you can start making free cash with your cards. Who wouldn't like free cash?
Read to make money with your credit cards? The chances are that you are interested in making money with credit arbitrage, but are not sure what cards to apply for. Intellicreditcards.com has a list of credit cards that you can use to get started with the arbitrage process. To find arbitrage credit-cards, log on to intellicreditcards.com, and look for 0% APR offers on the intro column.
For a comprehensive credit card comparison, please visit http://www.intellicreditcards.com
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