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I have lots of emails in my inbox about how to take advantage of the 0% APR on balance transfer from their new credit cards. Some are really curious about how to make extra money from 0% APR balance transfer. Here I will start to write a series of posts about how to make extra money by taking advantage of the 0% APR balance transfer offers from credit card issuers.

I believe most of us have already known how to get sign-up bonuses, how to maximum your cash back/rewards by selectively and wisely use your credit cards combination. However, some of us may be not familiar with the balance transfer and not know how to earn money from it. My post “Earn free Money from Citi” turned out to be one of the most popular posts in this blog. I don’t have enough time to reply each email. Instead, I’d like to write some more detailed stories about balance transfer.

Why do the credit card issuers give you 0% APR balance transfer offers? Of course, their purpose is not to let you earn interest from high rate saving accounts or CDs. As a matter of fact, they want you to pay down debts with high interest rates-auto loans, credit card balances, personal loans, payday loans and home-equity loans. Usually the 0% APR is time limited. For example, most of 0% APR offers will expire in 12 months. After that, if you can’t pay off all your balance on that card, you have to pay the regular interest rate (usually between 14% and 20%). This is an evil tactics used by credit card issuers. They want you to use the 0% APR offer; meanwhile they hope you can’t pay off the balance before the due date.

However, what if you don’t have any debt? Well, you can get extra money from high interest rate saving accounts or CDs by transferring your balance to those accounts. If you can take $10,000 from your credit card, you will end up with $10,500 after 12 months, and then put $10,000 back to your credit card account. It’s radically simple! You’re using one bank’s money to earn money from another bank. You don’t need to use one penny of your own money.

As I mentioned above, you have to pay regular interest if you can’t pay off the balance in time. The credit card issuers aren’t stupid. They are high profitable institutes. They know how to earn profits from their customers. You can’t be too careful about playing money games with them. People with the following

People always forget to pay bills.

It’s very simple. If you can’t pay bills in time, credit card companies will charge late fees and will also terminate the 0% APR offer. You have to pay regular rate. If your late payment exceeds 30 dates, your credit report will get hit by a late payment. Sometime, other banks will also close the accounts without notifying you first.

People need to use credit soon.

If you’re preparing for a mortgage, car loan or other kinds of loans, you’d better don’t play the game. A huge balance on your credit report will definitely lower your credit score. In this case, you can’t get a good rate for your new mortgage or loan. Or maybe you can’t get a loan. Please also remember that even you have paid off your balance, you have to wait for a bout 2 months until the payment appears on our credit report.

People have bad credit and limited credit history.

Of course, if you can’t get a good credit score, you can’t get a good offer from credit card companies. And you can’t get a high credit limit to maximum your earning.

People carry balance regularly.

If you carry credit card balance regularly, you might be not able to pay off the credit card balance before due date. If this is real, you have to pay tons of money. For example, $10,000 will generate more than $1,000 interest with regular interest rate. If you need cash immediately, you can find other financial products. Borrow money from credit card companies is a not wise decision.