Saturday, August 16, 2014

Watch Your Steps and Make a financial Success

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While the game is risky, if you have some knack for investing, then you may beat the credit card companies at their own game and make money using their free offers, cash back and balance transfer schemes. All you need to do is some shrewd planning and investments and may be get some revenge on your credit card companies for charging you through the nose. There is definitely a good strategy required to ensure that you make the credit card arbitrage process a success. There are some key areas that you should focus on.

The trick is to make use of the low or zero cost money from credit cards and use the same for high value investments tghat giove a high yield within a certain time span. This may be the tricky part but its worth trying given the rock bottom rates . It may not help you make a fortune but certainly helps you earn extra as long as you are vigilant and cautious and exrcise self-discipline. Therefore once you’ve done the inutial research, you’ll have to keep a tab and monotor the same. Experts like Milner, give sample spreadsheets that can make your task easier.

Investors are not going to going to get too much information from the investment consultants but a little research on the internet yields a lot of information from bloggers who have successfully used the process to earn rewards from the credit cared companies by using their policies intelligently. One blogger has stated ti have made approximately, $2500 loans over a period of 3 years using the process of credit card arbitrage. It is in a way works like the banks , who rotate your money to earn interests.ffors

Tips To Make Your Efforts A Success

There are some ways through which you can make sure that the process of credit card arbitrage turns out to be in your favor and you make some good profits.

1. Identify a good offer that gives very low cost cash advance or a balance transfer facility. These will be typically a limited period offer aiming at luring the customer into a new debt and most will range for 6 months to a year period. Read through very carefully the terms and conditions and assess the profit margin and create a spreadsheet to monitir al payments, returns and payoff dates.

2. Then select the offer and park the money into any online investment option that gives a higher return. CDs can yield a higher amount but often come with penalties too when you withdraw before the term is up.

3. Make the monthly payments on time during the offer period so that there is no risk of late payments and penalties being added to your bills and thus eroding your profits.

4. Pay off the balance at least a couple of weeks before the end of the offer period, to ensure that all calculations get done on time and you do not end up having any last minute surprises. The remaining interest is your profit.

It is important to note that most new cards may not offer very attractive cash advance schemes, therefore in a such a situation the best thing is to take cash advance from an existing card and then transfer the balance to the new card and enjoy the ‘teaser” period. However you’ll have to understand the transfer fee and the caps imposed before you go ahead with the plan.

Also remember that the profit is taxable as per your tax bracket. You need to be confident and savvy enough to be able to juggle through the period without getting stuck.

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