Can I make small profit from my credit card, please help?

Question

I need money, but found out one of my credit card can give me 3.99% into my checking account. Now, my saving account give me 4.65% interest. But my credit card says will charge me $70 fee. Am I making small / very small profit, do you think, suppose they loan me $25,000 for a period of 9 months?

BTW, my saving account said the interest is compounded daily but credited at the end of the month.

Thanks!

Answer 1

Yes you can. The low 3.99% APR is usually for a short term. You can borrow $25,000, say for 6 months, then put that money in a 6 month CD (they pay a higher interest rate) typically paying 5.80%. You pocket the difference, 1.81% of $25,000. You make $450 in 6 months.

Answer 2

I think I followed this... you want to take a $25,000 cash advance against your credit card for 9 months. They will give you 3.99% into your checking account. You will then deposit the $25K into your savings and earn 4.65% and then pay off the credit card in 9 months, right?

If that is the case, you left out how much your credit card interest rate will CHARGE you. They may give you a one time deposit of 3.99% but if they charge you 22% per month for 9 months, you aren't making a profit. Not to mention what might happen if you can't pay it off as you have planned?

Answer 3

Before you proceed make sure you read and understand all the rules of credit card. More over credit cards change there policies very often. It sounds like a profit. All the best.

Answer 4

unfortunately the banks are the only people who make profits off of credit cards

Answer 5

sorry but there is no possible way to make a profit off of credit cards UNLESS you are the issuer, not the issuee.

Answer 6

I don't know