Make Money with 0% APR Credit Cards

You didn't read it wrong. You can actually MAKE MONEY with a 0% APR Credit Card. It's not a "get rich quick" scheme but it's not rocket science either. Here's how it works:

1. Credit card companies offer 0% introductory APRs for a period of 3-15 months. The 0% APR is usually only for purchases but some cards offer it on balance transfers as well. The trick is to capitalize on the 0% APR period.

2. To do this you'll need two credit cards (request the highest limit possible when applying). I like the Miles by Discover Card and the Pulaski Bank Gold Visa Card but you can choose any card you like. The important thing to keep in mind is the balance transfer rate, balance transfer fee and 0% APR period. You want to find a card that has a 0% introductory APR and balance transfer rate. It's tough to find a credit card with no balance transfer fee but most will have a $75 cap and this will work fine.

3. With the two 0% APR Credit Cards of your choosing you want to pick one to request balance transfer checks or an online balance transfer. An online balance transfer is best because you can start earning money quicker.

4. Next, you take the 0% APR Credit Card that you would like to transfer FROM and max out the limit by transferring to the other card. This will create a NEGATIVE BALANCE on the credit card that you transferred to.

5. At this point you want to request a "credit balance refund." With most credit cards this can be done online. The credit card company will then send you a check for the negative credit amount.

6. Now that you have the money you want to do one of two things. Either apply the amount to high rate loans (other credit cards, home equity loan, etc.) or put it in a high yielding savings or checking account. You can find an account paying 5% easily (see bottom).

7. The money making part works like this. You either save a year's worth of interest on the balance you applied to other loans or you're going to make 5% for the same year on the money you put into a savings account. Simply put, if you put $10,000 into a savings account at 5% you'll make $500 in interest. If you paid a balance transfer fee of $75 you still profited $425. This isn't a large sum of money but it's free money. And with access to enough credit this process could be repeated several times.

There are some words of caution in using 0% APR Credit Cards to make money. Some people like to apply the money to stocks or bonds to make (potentially) more than 5%. This is fine but keep in mind that if one payment is late the 0% APR period ends. Then you're stuck paying the normal APR (probably more than the money is earning) and the money is tied up in stocks. With a savings account is 100% liquid and can pay off the credit card if it loses the 0% APR. This involves less risk and guaranteed money.