Cash From Credit Cards

If you are organised, there is the potential to make some quite tidy profits through the cunning use of credit cards and those who provide them. The following is one technique that you may find effective, but it does require you not to have any previous credit card debts outstanding.

The first step is to get yourself a credit card that offers an initial 0% on purchases, then use this card as your only form of spending - this means no cash or cheques either - it is also advisable to avoid any kind of card protection insurance.

When it comes to paying the monthly bill, set up the minimum repayment as a direct debit - meanwhile your wages are collecting in your bank account, so any debt on the card should be equal to the excess there.

Next, while you are accruing some debt on your credit card, you need to start making more interest from the money in the bank. There are a range of accounts to choose from, but your best bet would be a mini-ISA which gives you tax-free savings with easy access and a decent rate of interest.

Just before the period of 0% purchases ends, you simply have to pay off the card using the money in your bank account and the interest this money has accrued over the period is your profit.

Alternatively, if you are hungry for more, you could always just transfer the balance of your present card to another 0% card and restart the whole process. One thing to remember is that if you attempt this technique with too many cards at the same time, it may affect your credit rating adversely, so space them out!

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