Make Money on Credit Cards?

This is for those out there who like playing the game… You know who you are! You’ve experimented with having multiple credit cards and transferring your card balances between the two credit cards to keep paying a super low rate of interest whenever they have a low interest rate balance transfer promotion.

CreditCard.jpgWell, if you are really in the mood, how about this one…  If you have a credit card that periodically will have an offer to give you a low rate of interest on cheques written from your credit card for 3 months or 6 months or whatever, then assuming that you have no credit card debt, you could write a cheque to yourself and deposit it into a high interest rate savings account.  Let’s take an example:

Your credit card is offering a 0% interest rate on all cash advance cheques for 6 months.   HSBC (example) is offering 5% interest on it’s high interest savings account. Let’s say you write a cheque to yourself and deposit it to HSBC for $10,000.  You will earn $250.00 in interest over those 6 months that you didn’t have before!  Keep in mind though that you will have to pay the monthly minimum payment to your credit card company – which you can take from your new savings account. Right before the 0% interest rate promotion ends, remember to pay off the credit card with the balance of your high-interest savings account… :)

Preet Banerjee
Preet Banerjee an independent consultant to the financial services industry and a personal finance commentator. You can learn more about Preet at his personal website and you can click here to follow him on Twitter.
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