For those new viewers, check out my five part series on App-O-Rama:
Jimmy from Yourcreditadvisor.com recently posted a great article “How to: Make Money with Balance Transfer Arbitrage”
Here is a little bit of it:
ARBITRAGE: Hedge two seemingly opposite transactions so as to make a guaranteed profit — that is, zero risk. Balance transfer arbitrage, with low-rate or 0% APR credit cards, requires only a bit of discipline, research to find good card offers, and organizational and planning skills.
PREMISE: Borrow money at a low rate and earn money on it at a higher rate until the intoductory low-rate borrowing term has expired.
The only thing I would disagree with is his position(rule #7) on closing credit card accounts once the promo is over. I always tell people to keep their credit cards open because you want the age of card to grow and utilizing the transfer of the balance for next year’s app-o-rama.