Comments on: If I Were Going to Do Credit Card Arbitrage… http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/ Fri, 19 Mar 2010 13:56:41 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Saturday Roundup | Credit Withdrawal http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3935 Saturday Roundup | Credit Withdrawal Sat, 22 Dec 2007 19:11:00 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3935 [...] Mrs Micah - If I Were Going to Do Credit Card Arbitrage,… [...] [...] Mrs Micah – If I Were Going to Do Credit Card Arbitrage,… [...]

]]> By: mrsmicah http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3165 mrsmicah Mon, 17 Dec 2007 18:13:16 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3165 Ah, good points Jon and PT. I'd probably opt for the Money Market account. I'm with you, Laura. Even though it seems like this would work, I just don't have the risk tolerance (or credit score) for it... Ah, good points Jon and PT. I’d probably opt for the Money Market account.

I’m with you, Laura. Even though it seems like this would work, I just don’t have the risk tolerance (or credit score) for it…

]]> By: Laura http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3144 Laura Mon, 17 Dec 2007 16:13:52 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3144 I guess I'm not the risk taker I thought I was! I'll stick with growing our house fund month by month. I guess I’m not the risk taker I thought I was! I’ll stick with growing our house fund month by month.

]]> By: Jon http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3115 Jon Mon, 17 Dec 2007 13:37:04 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3115 Yep as paidtwice said you have to keep making payments. I think they're usually 2% of the balance, aren't they? So maybe you could put half the money in a money market account and the other half in a high interest CD. Another possibility is to calculate how much you'll make in interest and then put that amount in the stock market. Worst case, you lose it and break even overall; best case you make oodles of money! Yep as paidtwice said you have to keep making payments. I think they’re usually 2% of the balance, aren’t they? So maybe you could put half the money in a money market account and the other half in a high interest CD.

Another possibility is to calculate how much you’ll make in interest and then put that amount in the stock market. Worst case, you lose it and break even overall; best case you make oodles of money!

]]> By: paidtwice http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3020 paidtwice Sun, 16 Dec 2007 23:34:45 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-3020 Don't forget you have to make your minimum payments on all your debt each month or lose your 0% interest. That's the part that does it in for me. It diminishes your returns and is just too much for me to keep track of. Maybe if I made arbitrage my full time job lol. I only have $100K in available credit, anyway lol Don’t forget you have to make your minimum payments on all your debt each month or lose your 0% interest.

That’s the part that does it in for me. It diminishes your returns and is just too much for me to keep track of. Maybe if I made arbitrage my full time job lol.

I only have $100K in available credit, anyway lol

]]> By: RacerX http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-2993 RacerX Sun, 16 Dec 2007 19:26:13 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-2993 Another thing to note: You will take a massive initial hit on your FICO scores. To the tune of 100+ points potentially. Over the year it will come back up and you might even increase it later, but do not do this if you have ANY major purchases comimng up. Another thing to note:

You will take a massive initial hit on your FICO scores. To the tune of 100+ points potentially. Over the year it will come back up and you might even increase it later, but do not do this if you have ANY major purchases comimng up.

]]> By: My Dollar Plan http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-2989 My Dollar Plan Sun, 16 Dec 2007 19:14:23 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-2989 Glad it got you thinking! It does require organization, but the payoff is worth it. Most of the work is upfront, then it really just runs itself. Glad it got you thinking! It does require organization, but the payoff is worth it. Most of the work is upfront, then it really just runs itself.

]]> By: Wooly Woman http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-2978 Wooly Woman Sun, 16 Dec 2007 17:14:47 +0000 http://financefreelancelife.com/2007/12/16/if-i-were-going-to-do-credit-card-arbitrage/#comment-2978 I keep thinking about this too when I get 0% offers for credit cards in the mail, but for smaller amounts. I too am scared I would miss the deadline and be charged interest and it is a lot of work. But you are right, on bigger balances it does seem worth it if you have the guts. I keep thinking about this too when I get 0% offers for credit cards in the mail, but for smaller amounts. I too am scared I would miss the deadline and be charged interest and it is a lot of work. But you are right, on bigger balances it does seem worth it if you have the guts.

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