Earn money from your credit card

I watched anxiously as the $12000 check slides into the deposit slot. Waited, gave a sigh and walked out of the bank. I’ve done everything I could to make sure the transaction goes smoothly as planned including that final examination on how many zeros there are in twelve thousand dollars. This is the largest sum of check I’ve ever written in my life.

The plan. To do a balance transfer using introductory rate of 1.9% and deposit it into a money market fund that guarantees a 4.25% return for a period of 6 months. I gain whatever differences in between. Which roughly finalizes into 1% of the total sum. So $120. If I screw up anywhere during the process, a 20% interest fee will apply and I stand to be charged $1200.

Sounds like too much risk and work? Not for me, it’s all for the benefit of education. With each small maneuver, I grow more confident in my abilities to assess the situation and make the right decision. Same thing with this experiment. I stumbled at the beginning and wasted several hours of phone calls plus email exchanges just to get all the facts right.

Later, I found out that this maneuver is called credit arbitrage and that our neighbor down south has it even easier. Several companies offer 0% intro rate for a 12 month period. How I wish to be in the states right now, there are so much more financial opportunities for a young aggressive person like me.

I will write again on the details of the execution once the deal is done and finished.