Yes if anyone was to try this, I would recommend that they read all of the fine print first. If the bank were going to charge you 2-3%, that would take almost a year to recoup those fees with interest in the bank.

I too have one of those cash back cards and love it. The thing is, you have to make sure you are not spending extra money just because you are getting 1% of it back.

Regarding 0% credit cards.

It’s possible to make a little cash with these – or rather it was. However, I would never advise anyone to ‘rack up a lot of credit card debt’.

In the UK the balance transfers to 0% cards were very popular but now the banks want 2-3% of the debt being transferred.

Previously I have used a 0% credit card and paid the minimum monthly amount. The rest I placed in a High Interest Savings Account. I did this until it was necessary to pay the balance in full. It made some interest in the Savings account. Not big money by any means but I always maintain that any profit is good profit.

At the present time I use credit cards for purchases that pay me 1%. Again not a big amount but over a year it builds up with normal spending.

Credit cards are expensive credit and I feel should, therefore, be paid off every month.

Good luck with your target.

Best wishes,
Mike.

Have you had to use your credit for anything recently? Like buying a home or car etc. I was wondering if this affected the rate you received b/c doing this usually drops your score a little bit.

I plan to hold off on credit card arbitrage until I have bought my own house/car.

The lower interest rates do make it harder to make money now. On the flip side, as interest rates come down, credit card companies do extend more 0% BT offers.

Right now, I have one running, but I expect to see more in the coming months.

I automate the entire process through auto transfers and On Line banking. It’s pretty much a set and forget sort of thing.

I did a 5 Post series on my process last year:

http://cromely.blogspot.com/2007/01/credit-card-arbitrage.html

I agree with you, I could probably get a better rate from those personal loans sites. I am making around 15% at Prosper. The thing is, I need something that is no risk and that is guaranteed. This is one thing that you could not afford to lose the principle. I would not recommend doing that, but thanks for the comment.