Anyone tried credit card arbitrage?

[dunnhead]

I've thought about it, but I don't know if I'm ballsy enough to do it.

If you don't know what this is... you know how you get those 0% interest for a year credit card offers in the mail?  Some will let you do a balance transfer into a savings account (some consider it a cash advance...depends on the card).  So lets say you get a card with a $20,000 limit.  You request a $20,000 balance transfer into a high yield savings account that earns 5% interest or so.  You just pay your minimum payments from the savings account, and when the introductory term is up you either transfer the balance to another 0% interest card or pay the full balance from the savings account and pocket the earned interest.  Some people make a few thousand a year doing this.  Downside:  potentially hurts your credit, and if you miss a payment you could owe the full balance plus penalties, which could wipe out any of your earnings.  Interesting concept.

Here are some links about it:
http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/DaredevilsChaseFreeCash.aspx

http://www.fivecentnickel.com/2007/02/27/how-to-profit-from-0-balance-transfer-credit-card-offers/

[dunnhead]

s

[Snort and Squeal]

same here.  I know some people that have done it however.  Arbitrage is an interesting concept and the opportunity for it exist on only a limited basis so why not?

[BigSexyHog]

might we willing to give this a shot.

[hawgs34]

The biggest downside I see is that, depending on other variables in your credit report, it may cause your credit score to tank.  Of course if you're not planning on making a credit purchase in the next year it may not matter.