I Just Added $19,500 in Debt!
It’s OK, I THINK I know what I am doing this time. I didn’t buy a new car. I didn’t go on a fancy vacation. I simply decided it was time to play the credit card arbitrage game.
After spending the past 2+ years aggressively paying down my credit card debt I have managed to eliminate the balances on all of my credit cards except one. Instead of closing my old accounts I selectively kept them open to help Improve my credit score.
These were cards that:
- I have had for at least 5 years - They add history to my credit report
- Have high credit limits - They keep my credit utilization ratio low
After watching many other bloggers and their success with this technique I was waiting for a opportunity to start with a minimal effect on my credit score.
Bank of America was the first to step up offering 0% on Access checks and balance transfers till May 2008 with a $75 balance transfer fee. Interestingly this was only offered on 1 of my 3 Bank of America credit cards. The other two were still offering 1.99% on balance transfers.
It couldn’t have been any easier. Now until May 2008 I just need to be vigilant about paying my bills on time and making sure I don’t get any universal default charges.
