It is becoming more popular to perform arbitrage these days and on an even bigger scale.That is why i plan on engaging in what has been termed an "App-O-Rama." This is a strategy of completing multiple credit card applications at the same time. The goal is to get as many bonus offers and new credit lines as one desires, in a quick and convenient way and then place the funds into a high interest account of at least 5% APY. This has become so popular in fact that it has even sprung an official website. This website is full of helpful resources such as current credit card offers, tips and tricks, and a list of sign-up bonuses.
Just a word of warning for those who may be interested in this:
I would recommend not doing this unless you read and fully understand all of the credit card terms and conditions and are aware of all of the potential consequences. I will try to describe to you the Ts and Cs and express their importance, but i may not be able to remember them all. This is an entirely legal practice, but remember you are dealing with a credit card and banks design these products for you to spend money and make money off you, so if not done wisely it can be risky.
Here is my How To Guide:
1st: Gather up all of your offers - Just about every credit card company often offers introductory rates 0% for a certain exteneded period of time for balance transfers. You can either find these online from fatwallet.com, AOR.com, or just sift through your junk mail. First establish the the offer is for 0% interest and make note of the length of the introductory period. You must be sure that this offer applies to balance transfers and preferably for at least 10 months.
Just a word of warning for those who may be interested in this:
Here is my How To Guide:
1st: Gather up all of your offers - Just about every credit card company often offers introductory rates 0% for a certain exteneded period of time for balance transfers. You can either find these online from fatwallet.com, AOR.com, or just sift through your junk mail. First establish the the offer is for 0% interest and make note of the length of the introductory period. You must be sure that this offer applies to balance transfers and preferably for at least 10 months.
2nd: Apply - You must decide now on the application how much you would like to transfer. This can be as high as you want it to be, but i have read from my resource websites and my money blog that you should attempt at least twice your highest credit card limit (up to about 20K). Despite what you ask for, the credit card company will give you want they want. I have asked for 20k before and only received 5k from one bank and 18k from another bank. So if you dont ask, you wont receive. A quick reminder, stay away if your planning on cashing this out for a vacation or a trip to vegas!
A side note on what to fill in for "household income." You should know that this figure is not verifiable on a credit card application because it is treated as stated income. Put otherwise, you should be listing the combined income of you, your spouse, roomate or anyone else living under your roof to make this number big. As in this case, bigger is better.
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