The Basics

The basics of credit card arbitrage are quite simple. I’m sure you’re familiar with the 0% credit card offers. I get about dozen a month in the mail. Being a financially-disciplined person, I saw no need to act on those offers. Now I have one.
Credit card arbitrage is about getting that 0% cash and putting it in an online savings account. Just like a stock or bond arbitrageur, you’re taking advantage of a price differential between two markets and collecting the spread risk-free.

There are advantages and disadvantages to doing this, which are discussed further in the guide.

Although the basics are not complex, what separates the professionals from the amateurs is how they go about this. There’s a deeper strategy here, and they center on the following:

1. Getting the most money possible. Obviously, the higher your credit line the more interest you will make.
2. Getting the money out. Not all banks will allow you to do balance transfers to your checking account. There’s a variety of ways around this.
3. Making sure everything goes smoothly. Credit card companies are infamous for exorbitant fees. Those who are knowledgeable, prudent and well-organized will set up a system that will allow them from making mistakes.
4. Controlling credit score damage. Knowing what boundaries not to pass will allow you to manage this.