There is a method that one can use to actually make money with cash advances on credit card accounts. You have to be able to pay attention to what you are doing in order to make this happen, but it is possible.
Because of the highly competitive environment among credit card companies, you will find a myriad of offers in an attempt to out-do each other. This is especially true around the holidays. These companies will go for the throat in order to get this business. They know it means millions in interest and other fees and charges.
If you have a good credit score, you will be able to do this with ease. This is fully legal and legitimate in every way and it makes it more fun when you are able to do this to credit card companies which take every opportunity to squeeze every cent that they can from their customers. Here are the steps necessary to pull this off:
First, find a credit card offer for 0% for twelve months. Specifically it must be for 0% interest on cash advances for a year – not 0% interest on new purchases or balance transfers. There are not as many of these offers out there, but with a little searching, you can find them.
Next, when you find one, apply for the card. During the time that you are awaiting the arrival of your card, look around for a high interest bearing savings account into which you will deposit the cash advance from your card. This account must earn as much interest as possible during the same twelve month period.
Check with these online Savings accounts for very good rates:
GMACBank.com 2.81%
HSBCDirect.com 2.27%
CountryWideBank.com 2.25%
When you receive word that your cash advance is available take out as much as you are able under the agreement and deposit it into your high interest bearing savings account. Then let it alone for the twelve month period. Only make the monthly minimum payment each month on the credit card which will be acceptable since you are not being charged interest at the present time.
Finally, upon reaching the twelfth month, take out the amount of the cash advance that you first took an advance on and then pay it back into your account. You are replacing that original amount. Now, the rest is the interest you earned on the amount deposited into your savings account.
How much can this add up to? To make it easy, we will round off the following amounts. If you deposited $5,000 for twelve months at 3% interest, you would have $5,256 at the end of that period of time. That is a cool $256.00 earned using the credit card company’s money. That is called ’sweet revenge.’
If you repeat this process with another credit card, then you can continue to make money which over time along with the interest could become a sizeable amount.
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