How I earned over $82,000 in profits by exploiting the gap between 0% APR balance transfers and high-yield alternative investments.

What Is Credit Card Arbitrage?

According to Investopedia:

Borrowing money at a low interest rate from a credit card then investing that money at a higher interest rate to try to make a profit. The lowest risk and most common type of credit card arbitrage entails taking advantage of a 0% introductory APR balance transfer offer to borrow thousands of dollars from a credit card for the duration of the introductory period, often 12 or 15 months. The borrower then places all of this money in a higher-interest but no-risk vehicle, like a savings account, money market account or certificate of deposit, where the interest rate might be 1% to 5%, depending on market conditions. As long as the borrower makes all the required minimum monthly payments on the credit card on time and repays the balance in full before the introductory period expires, he or she will turn a profit from credit card arbitrage.

The Basic Mechanics

Credit card arbitrage exploits a simple interest rate spread: borrow money at 0% APR through balance transfer offers, invest it in higher-yielding vehicles, then return the principal before the promotional period ends. You keep the investment returns as profit.

The strategy in four steps:

  1. Secure 0% APR balance transfer offers: Apply for credit cards with 0% APR for 12-21 months and no balance transfer fees (rare but available)
  2. Transfer balances to cash: Use balance transfer checks or money transfer services to convert credit into liquid funds
  3. Invest in high-yield opportunities: Deploy funds in higher-return investments—I used private credit platforms, peer-to-peer lending, and short-term real estate debt deals earning 8-15%+
  4. Repay before promotional period ends: Return principal to credit cards before 0% APR expires, keeping all investment gains

Why This Works

Credit card issuers offer 0% APR balance transfers to attract customers, betting that most people will carry balances past the promotional period at high interest rates (15-25%+). Disciplined investors can exploit the promotional window for profits without ever paying interest—as long as they maintain rigorous payment discipline and invest in appropriate vehicles.

Requirements for Success

Minimum Prerequisites

  • $100,000+ in available credit: Smaller amounts generate insufficient returns to justify the operational overhead
  • Excellent credit score (740+): Required for approval on multiple 0% APR offers
  • Disciplined tracking: Must monitor promotional period end dates and minimum payment requirements meticulously
  • Stable income: Credit card issuers evaluate income when approving large balance transfers
  • Emergency fund: Separate from arbitrage funds to handle unexpected expenses without disrupting the strategy

Key Risks to Manage

  • Missing payments: Late payments terminate 0% APR and trigger penalty rates (25%+), instantly destroying profits
  • Promotional period expiration: Failing to repay before 0% ends results in high-interest charges
  • Credit utilization impact: High balances temporarily lower credit scores (can drop 50-100 points)
  • Balance transfer fees: Most offers charge 3-5% fees; only no-fee offers are profitable for this strategy
  • Investment risk: Investment vehicles must be liquid and low-risk to ensure capital preservation

Operational Discipline Required

Credit card arbitrage is simple in concept but requires rigorous execution:

  • Detailed spreadsheet tracking all promotional end dates and minimum payment amounts
  • Automated minimum payment schedules with backup manual verification
  • Calendar reminders 60-90 days before promotional periods expire
  • Separate accounting for arbitrage funds vs. personal funds
  • Investment vehicles that allow liquidation within promotional periods

Finding 0% APR Balance Transfer Offers

Not all balance transfer offers work for arbitrage. You need all of these criteria:

  • 0% APR: No promotional interest charges
  • No balance transfer fee: Most charge 3-5% fees; only no-fee offers are profitable
  • 12+ month promotional periods: Longer periods maximize returns and provide buffer
  • Balance transfer checks or bank transfers: Mechanism to convert credit to cash

Resource: Master List of No Fee, No APR Balance Transfers — Doctor of Credit maintains the most comprehensive database of qualifying offers (though they remain rare even today)

My Credit Card Arbitrage Results (2015-2018)

Between 2015 and 2018, I executed four arbitrage campaigns, generating over $82,000 in profits. Each campaign involved coordinating multiple 0% APR balance transfer offers, investing proceeds in private credit platforms (peer-to-peer lending, small business loans, real estate debt), and meticulously tracking repayment schedules.

Year Total Borrowed Avg Balance Net Profit Return
Round 1 (2015) $226,590 $219,497 $17,951 8.18%
Round 2 (2016) $363,271 $352,711 $25,464 7.22%
Round 3 (2018) $207,820 $202,970 $22,883 11.27%
Round 4 (2018) $206,990 $200,200 $16,608 8.20%
Total $1,004,671 $975,378 $82,906 8.72%

Click on each round to see detailed breakdowns of cards used, investment vehicles, and lessons learned.

Key Takeaways from Four Campaigns

  • Returns varied with investment opportunities: 2018 Round 3 achieved 11.27% through well-timed private credit investments, while 2016 Round 2 yielded 7.22% with more conservative deployment
  • Scale matters: Operating overhead (tracking, payments, transfers) is fixed, so larger balances generate better risk-adjusted returns
  • Perfect execution record: 100% success rate across four campaigns with zero interest charges or missed payments over 3+ years
  • Already rare offers became scarcer: No-fee 0% APR offers were uncommon even in 2015-2016, with even fewer available and shorter durations by 2018
  • Time-intensive: Each campaign required 20-30 hours of setup, ongoing tracking, and management

Why I Stopped

I discontinued credit card arbitrage after 2018 for several reasons:

  • No-fee 0% APR offers became even scarcer with shorter promotional periods (15-18 months became 9-12 months)
  • Opportunity cost—managing $200K+ in credit balances and tracking payments for $20-25K annual profit became less attractive relative to my growing net worth
  • Shifted focus to higher-scale opportunities (litigation finance investments of $50K-$150K per case with higher return potential)
  • Operational overhead remained constant while marginal value declined—same effort for diminishing relative returns
  • Capital could be deployed more efficiently in alternative investments without the administrative burden

Should You Try Credit Card Arbitrage?

When It Makes Sense

  • You have excellent credit (740+ score)
  • You can access $100,000+ in no-fee 0% APR balance transfer offers
  • You’re highly organized with strong financial discipline
  • You’re comfortable with temporary credit score impacts from high utilization
  • You have access to high-yield investment opportunities (private credit, real estate debt, etc.)
  • You have time to manage the operational overhead (20-30 hours per campaign)

When to Avoid

  • You’ve ever missed a credit card payment or struggled with credit discipline
  • You carry revolving credit card balances
  • You lack sufficient emergency funds separate from arbitrage capital
  • You’re uncomfortable with detailed financial tracking and spreadsheet management
  • You don’t have access to investment vehicles earning significantly more than current savings rates

Is Credit Card Arbitrage Still Viable in 2025?

The fundamental strategy still works, but the opportunity landscape has shifted:

What’s better now:

  • Higher baseline savings rates (~4% in 2025 vs. ~2% in 2018) improve the arbitrage spread
  • More alternative investment platforms available (though many have closed or consolidated)

What’s worse now:

  • No-fee 0% APR offers remain extremely rare and now come with shorter promotional periods
  • More cards charge 3-5% balance transfer fees, making arbitrage unprofitable
  • Increased operational complexity as banks tighten policies

The verdict: If you already have the credit infrastructure ($100K+ available credit lines) and organizational systems in place, credit card arbitrage can still generate meaningful returns. However, building that infrastructure from scratch for this strategy alone is likely not worth the effort for most people in 2025.

For detailed implementation guidance, see my individual round breakdowns linked in the table above, which cover specific cards used, investment vehicles, tracking systems, and lessons learned from each campaign.