Credit Card Offers
Credit card companies have a lot of competition for your business. Often, they market gimmicks in hopes that you will join their card. 8.9% introductory rate for 6 months they say! That works out great for the 6 months, but then they bump you up to 26% or something crazy like that. Not fun at all.
Yesterday I got a credit card offer from Fidelity that was very intriguing. They offered a 0% introductory fixed APR for cash advance checks and balance transfers until April 2009! That is 13 1/2 months away! This is a great opportunity to make a nice riskless profit. What I could do is apply for the card. Once I am approved, I can write a cash advance check to a bank and open a CD with it. For a 1 year CD the average rate is somewhere around 4% right now. For every $1000 that I am approved for I can make a free and riskless $40! That means if you are approved for $10,000 you can earn $400. This sounds great, but there is one catch though. In the offer they state that there is a 3% cash advance fee. You still stand to make a profit though. The riskless profit would be 4% - 3% = 1%. So for every $1000 you will make $10 risk free! Disappointing I know, but imagine if rates were at 6%.
Just something to think about for when rates go back up again.
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