Tuesday, September 25, 2007

An Experiment in Credit Card Arbitrage

In recent weeks, I have been reading on credit card arbitrage. Basically, this is borrowing money using those 0% offers from credit cards on balance transfers, and using it to invest in a safe, fixed-term investment. At the end of the 0% offer, you pay back the money you borrowed and keep the interests you made on it. Since you are borrowing the money for free, even a 4% interest rate translates into free money.

So, I decided to do try this to see if it is worth the effort. So I signed in for a new credit card from Citibank, which is offering 0% interest on transfers until August 2008. I did this on September 16th. I am still waiting for the card and transfer cheques.

I will keep you posted on my progress on this experiment.

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