| Its All About the DetailsIn Part II of | | | | from. The card also offers up to 5% cash |
| this article, we looked at some of the | | | | back on purchases and has a 0% APR on |
| things that people to need to watch out | | | | purchases for the first 6 months of |
| for in implementing this balance | | | | membership, but after that the purchase |
| transfer arbitrage strategy. It wasn't | | | | APR rises significantly. Depending upon |
| the complete list, but it was enough to | | | | your credit history the purchase APR, |
| make it crystal clear that careful | | | | which is a variable one, could range |
| attention has to be paid to the details | | | | from 13.24%, 15.24% or 18.24%.The |
| - the fine print - in order to profit | | | | Verdict is InIf you've read Parts I & II |
| from balance transfers. As I mentioned | | | | of this article, you know that the |
| in Part I, the details are in the terms | | | | objective of the balance transfer |
| & conditions of the offer. Today, we're | | | | arbitrage strategy is to make a profit |
| going to examine the terms & conditions | | | | on the spread between what it costs you |
| from an actual balance transfer offer I | | | | to borrow the money and the net interest |
| received in the mail to determine if it | | | | you pocket on the borrowed money after |
| is good enough to make some free money | | | | you pay off the card balance. The |
| with if we accept the issuer's credit | | | | greater the spread, the greater the |
| card. I recently received an offer from | | | | opportunity to make a profit and the |
| American Express for its Blue Cash card, | | | | narrower the spread, the smaller the |
| so we are going to take a look at the | | | | opportunity to make a profit. Based upon |
| terms & conditions for Blue Cash.Here's | | | | its terms & conditions, the American |
| What We're Looking ForHere are 4 things | | | | Express Blue Cash card offer is an |
| to know when screening balance transfer | | | | extremely poor candidate for the |
| offers for this arbitrage strategy:(1) | | | | arbitrage game. For starters, the |
| The APR for the balance transfer; | | | | balance transfer APR of 4.99% makes our |
| (2) The transaction fee to transfer the | | | | cost of funds too high to overcome. 0% |
| balance and the caps; | | | | APR is best. Second, the 6 month time |
| (3) The annual fees; and | | | | frame is too short. Look for a 12 to 15 |
| (4) The length of time for the | | | | month time frame. Lastly, by accepting |
| promotional interest rate.In reviewing | | | | the offer, a cardholder authorizes |
| at the terms & conditions for the | | | | American Express' bank to issue and |
| American Express Blue Cash card, I | | | | forward the balance transfer check to |
| noticed the following:(a) There's a | | | | his or her old credit card issuer. This |
| 4.99% APR for the life of the balance on | | | | completely knocks out any chance of |
| balance transfer requests submitted with | | | | making money with this strategy! The |
| the credit card application - any | | | | offer must permit a cardholder to write |
| subsequent | | | | a check to himself/herself, and must be |
| balance transfers will be subject to | | | | able to do so without the check being |
| the substantially higher, standard | | | | treated as a cash advance. Oh well, its |
| purchase APR; | | | | time to google "balance transfer offers" |
| (b) There's no balance transfer fee | | | | because, I really don't want to sort |
| with the offer, but subsequent balance | | | | through stacks of junk mail |
| transfers may be subject to an unknown | | | | again.================================== |
| balance transfer fee; | | | | =================================== All |
| (c) No annual fee; and | | | | rights reserved. This article may be |
| (d) The 4.99% APR is good for only 6 | | | | reprinted provided it remains as is and |
| months.A few other details: American | | | | all links remains intact.Ray Harris |
| Express has its own bank and by | | | | writes articles on credit, investments |
| accepting their offer to transfer credit | | | | and personal finance. He is the |
| card balances to that bank, you | | | | webmaster of a website that provides |
| authorize it to forward the balance | | | | information on a variety of credit card |
| transfer check to the credit card | | | | offers, including balance transfer |
| company the balance is being transferred | | | | offers. |