I was thinking of things to do to safely make a few bucks off one or more 12 month 0% APR intro bonus on a new credit cards, assuming you are ok with taking a FICO score hit for the utilization on the card(s).
Run your spend through the cards like normal, but buy a short term CD of the same higher value as it would have taken to pay off the purchases each month.
Obviously would not work for the final 3 months of the 0% period, so could chuck the money in a HYSA those months.
A couple of days before the end of the 0% period, pay it all off with the cash from the CDs and HYSA.
3 and 6 month CDs can be had at 5.6% APY, and HYSA at 4.6%. Maybe better on both, but those are what I'm looking at now.
It seems like a surprising low effort way to safely make a few hundred to a thousand+ dollars letting a bank pay you to use your money while another bank pays you, via welcome bonus and travel/cash rewards, to use their money.
Even lower effort if you skip the CDs and just do a HYSA.
Am I missing something?
Someone has to have tried/is currently doing this, how's it pan out?🤔
@markbeiser wrote:I was thinking of things to do to safely make a few bucks off one or more 12 month 0% APR intro bonus on a new credit cards, assuming you are ok with taking a FICO score hit for the utilization on the card(s).
Run your spend through the cards like normal, but buy a short term CD of the same higher value as it would have taken to pay off the purchases each month.
Obviously would not work for the final 3 months of the 0% period, so could chuck the money in a HYSA those months.
A couple of days before the end of the 0% period, pay it all off with the cash from the CDs and HYSA.
3 and 6 month CDs can be had at 5.6% APY, and HYSA at 4.6%. Maybe better on both, but those are what I'm looking at now.
It seems like a surprising low effort way to safely make a few hundred to a thousand+ dollars letting a bank pay you to use your money while another bank pays you, via welcome bonus and travel/cash rewards, to use their money.
Even lower effort if you skip the CDs and just do a HYSA.
Am I missing something?
Someone has to have tried/is currently doing this, how's it pan out?🤔
I'm sure it would be just peachy, if you think it's worth it to muck up your credit scores and acquire cards you don't need. And I don't think you would make as much as you think you would. And also bear in mind that the current interest rate climate isn't going to last very long.
@SouthJamaica wrote:I'm sure it would be just peachy, if you think it's worth it to muck up your credit scores and acquire cards you don't need. And I don't think you would make as much as you think you would. And also bear in mind that the current interest rate climate isn't going to last very long.
All true!🤣
Also, on further reflection over another dram of whiskey, it occurred to me that maxing out a new $20k+ limit card runs the risk of triggering AA on other cards, so lets just mark this one in the "Silly whisky inspired ideas" category.🤪🥃
@markbeiser wrote:
@SouthJamaica wrote:I'm sure it would be just peachy, if you think it's worth it to muck up your credit scores and acquire cards you don't need. And I don't think you would make as much as you think you would. And also bear in mind that the current interest rate climate isn't going to last very long.
All true!🤣
Also, on further reflection over another dram of whiskey, it occurred to me that maxing out a new $20k+ limit card runs the risk of triggering AA on other cards, so lets just mark this one in the "Silly whisky inspired ideas" category.🤪🥃
More importantly, can you get me some of that whiskey? I'm in need of some kind of inspiration myself 
@ptatohed wrote:I've read a few people say that they do this. But for this to even make sense, you'd have to make sure there is a $0 balance transfer fee. A one time 3 - 5% fee will gouge or even wipe out your annual 5% return. $0 fee + 0% seem to be getting harder and harder to find. Plus, it's not like you're getting the lump sum as a cash advance, it would be a balance transfer. It might be best to just focus on paying down the balance at 0% than to try to make a little extra money.
This idea doesn't involve balance trasfers at all, it is for 0% APR on purchases offers.
@ptatohed wrote:I see what you are saying.
So, say you have 0% on purchases for 12 months and let's say you have a $12,000+ CL and you spend $1,000 per month. So, instead of paying your CC bill in full each month, you take that $1,000 and put it in a HYSA?
I'm not sure you'd be too happy with the results. Let's say your HYSA offer 5% APY. That's a 0.417% monthly yield. You'd earn .00417 x $1000 = $4.17 first month. .00417 x $2000 = $8.34 second month. $12.51 the third month.......... and $50.04 the twelfth month. So, about $325 for the year. Meanwhile, if you just used a straight 2% CB card for that $12,000 spend, you'd have earned $240 ($300 at 2.5% CB and $360 at 3% CB).
So, your idea does come out ahead over a 2% card by $85. It's up to each individual to decide if it's worth it.
Yeah, it isn't a lot of money, but it is "free" money!
With a card that had a 20k limit, I worked out that you could get around $650 utilizing short term CDs and a HYSA, if the current rates on them hold.
If I were to do it, I'd do it with a card I was getting good rewards/CB on the spend, and a SUB to go along with the 0% on purchases period.
More of a "for the lulz" way to claw some "free" money from the banks, but probably not worth the temporary score hit, and possible AA from other skittish lenders.
@ptatohed wrote:Right but, in my example, if you could average ~2.75% CB with other card(s), you could be losing money. 2.75%+ CB average is not hard to meet if you are willing to use the right card or a combo of cards. I, for instance, get no less than 3% CB with any CC purchase and I get 5% at every opportunity, bringing my average CB to notably over 3%.
As I said, I'd only do it with a card that also got good CB rewards...