Using Balance Transfer Credit Cards Can Be Profitable
If you are out of work and need income, one way to earn money is by playing the role of a banker. You find a source of cash at zero percent interest then put some of the money in a savings account to earn interest before the promotion expires. You then pay off the loan and keep the difference. This idea is not much different than how professional financial lending institutions make their money.
Profitable Credit Cards
Even though balance transfer credit cards do not allow for you to transfer money to a checking or savings account, cash back credit cards do allow you to do so. These cards tend to be competitive with zero percent interest rates during a promotional term. After the promotional period, the interest rate usually increases, which is the main risk you need to be aware of.
Using other people's money to make money is the key to this concept. You need at least a few thousand dollars to generate enough interest in your savings for the plan to work. It's important to understand lending rules that apply to whatever card you decide to work with, so you need to do some research first. If you're not careful the idea can backfire and end up becoming an expensive gamble.
Doing Your Homework
If you are interested in cash back credit cards, you need to sort through the offers that come in the mail and find a deal with zero percent interest over the course of six to eighteen months. The main reason for these offers is to transfer all your debts to a new easy to manage an account with just one interest rate. The convenience of having just one credit card payment instead of several is that you only have to worry about one due date and one repayment schedule with one set of terms.
Make sure you read the fine print before accepting any offer so that you can be on top of the game. Some credit card companies design traps that lead you to pay back more money than intended, so be careful.
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