Credit Card Tactics: Making Free Money From Balance Transfer Offers - Part III

Its All About the DetailsIn Part II of this article, weoffers up to 5% cash back on purchases and has a
looked at some of the things that people to need to0% APR on purchases for the first 6 months of
watch out for in implementing this balance transfermembership, but after that the purchase APR rises
arbitrage strategy. It wasn't the complete list, but it wassignificantly. Depending upon your credit history the
enough to make it crystal clear that careful attentionpurchase APR, which is a variable one, could range
has to be paid to the details - the fine print - in order tofrom 13.24%, 15.24% or 18.24%.The Verdict is InIf
profit from balance transfers. As I mentioned in Part I,you've read Parts I & II of this article, you know that
the details are in the terms & conditions of the offer.the objective of the balance transfer arbitrage
Today, we're going to examine the terms & conditionsstrategy is to make a profit on the spread between
from an actual balance transfer offer I received in thewhat it costs you to borrow the money and the net
mail to determine if it is good enough to make someinterest you pocket on the borrowed money after you
free money with if we accept the issuer's credit card. Ipay off the card balance. The greater the spread, the
recently received an offer from American Express forgreater the opportunity to make a profit and the
its Blue Cash card, so we are going to take a look atnarrower the spread, the smaller the opportunity to
the terms & conditions for Blue Cash.Here's Whatmake a profit. Based upon its terms & conditions, the
We're Looking ForHere are 4 things to know whenAmerican Express Blue Cash card offer is an
screening balance transfer offers for this arbitrageextremely poor candidate for the arbitrage game. For
strategy:(1) The APR for the balance transfer;starters, the balance transfer APR of 4.99% makes
(2) The transaction fee to transfer the balance andour cost of funds too high to overcome. 0% APR is
the caps;best. Second, the 6 month time frame is too short.
(3) The annual fees; andLook for a 12 to 15 month time frame. Lastly, by
(4) The length of time for the promotional interestaccepting the offer, a cardholder authorizes American
rate.In reviewing at the terms & conditions for theExpress' bank to issue and forward the balance
American Express Blue Cash card, I noticed thetransfer check to his or her old credit card issuer. This
following:(a) There's a 4.99% APR for the life of thecompletely knocks out any chance of making money
balance on balance transfer requests submitted withwith this strategy! The offer must permit a cardholder
the credit card application - any subsequentto write a check to himself/herself, and must be able
balance transfers will be subject to the substantiallyto do so without the check being treated as a cash
higher, standard purchase APR;advance. Oh well, its time to google "balance transfer
(b) There's no balance transfer fee with the offer, butoffers" because, I really don't want to sort through
subsequent balance transfers may be subject to anstacks of junk mail
unknown balance transfer fee;============================== All rights
(c) No annual fee; andreserved. This article may be reprinted provided it
(d) The 4.99% APR is good for only 6 months.A fewremains as is and all links remains intact.Ray Harris
other details: American Express has its own bank andwrites articles on credit, investments and personal
by accepting their offer to transfer credit cardfinance. He is the webmaster of a website that
balances to that bank, you authorize it to forward theprovides information on a variety of credit card offers,
balance transfer check to the credit card companyincluding balance transfer offers.
the balance is being transferred from. The card also