| Its All About the DetailsIn Part II of this article, we | | | | offers up to 5% cash back on purchases and has a |
| looked at some of the things that people to need to | | | | 0% APR on purchases for the first 6 months of |
| watch out for in implementing this balance transfer | | | | membership, but after that the purchase APR rises |
| arbitrage strategy. It wasn't the complete list, but it was | | | | significantly. Depending upon your credit history the |
| enough to make it crystal clear that careful attention | | | | purchase APR, which is a variable one, could range |
| has to be paid to the details - the fine print - in order to | | | | from 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 & conditions | | | | strategy is to make a profit on the spread between |
| from an actual balance transfer offer I received in the | | | | what it costs you to borrow the money and the net |
| mail to determine if it is good enough to make some | | | | interest you pocket on the borrowed money after you |
| free money with if we accept the issuer's credit card. I | | | | pay off the card balance. The greater the spread, the |
| recently received an offer from American Express for | | | | greater the opportunity to make a profit and the |
| its Blue Cash card, so we are going to take a look at | | | | narrower the spread, the smaller the opportunity to |
| the terms & conditions for Blue Cash.Here's What | | | | make a profit. Based upon its terms & conditions, the |
| We're Looking ForHere are 4 things to know when | | | | American Express Blue Cash card offer is an |
| screening balance transfer offers for this arbitrage | | | | extremely 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 and | | | | our 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; and | | | | Look for a 12 to 15 month time frame. Lastly, by |
| (4) The length of time for the promotional interest | | | | accepting the offer, a cardholder authorizes American |
| rate.In reviewing at the terms & conditions for the | | | | Express' bank to issue and forward the balance |
| American Express Blue Cash card, I noticed the | | | | transfer check to his or her old credit card issuer. This |
| following:(a) There's a 4.99% APR for the life of the | | | | completely knocks out any chance of making money |
| balance on balance transfer requests submitted with | | | | with this strategy! The offer must permit a cardholder |
| the credit card application - any subsequent | | | | to write a check to himself/herself, and must be able |
| balance transfers will be subject to the substantially | | | | to 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, but | | | | offers" because, I really don't want to sort through |
| subsequent balance transfers may be subject to an | | | | stacks of junk mail |
| unknown balance transfer fee; | | | | ============================== All rights |
| (c) No annual fee; and | | | | reserved. This article may be reprinted provided it |
| (d) The 4.99% APR is good for only 6 months.A few | | | | remains as is and all links remains intact.Ray Harris |
| other details: American Express has its own bank and | | | | writes articles on credit, investments and personal |
| by accepting their offer to transfer credit card | | | | finance. He is the webmaster of a website that |
| balances to that bank, you authorize it to forward the | | | | provides information on a variety of credit card offers, |
| balance transfer check to the credit card company | | | | including balance transfer offers. |
| the balance is being transferred from. The card also | | | | |