First you must make sure you know what you actually have –

is it 0% on purchases or balance transfers?

In neither case, it would not apply to a withdrawal at an ATM – interest kicks in from day 1 – banks are not dumb!

But for instance – if it is on purchases and if you buy something – and then sell it quickly (maybe on Ebay or to a friend?) and use that cash to invest in say, a 3 month CD earning interest – now we are talking.

I’m hoping this is a what if joke question as it is wrong on so many levels……. no offence.

First of all what kind of investment is going to give you a guaranteed return by July? You won’t even have time for a 6 month CD. And what kind that you can cash out in so short a time?

Investment means risk no matter what. What happens if they don’t pan out as expected? You will still need to pay the credit company. Plus you have to make payments as you go along. In addition 0% in most cases mean that if you have slow payed or have not paid the card to zero by the end of the offer you owe the regular APR retroactivly on the previous balances.

There are way to many varibles to even consider this as a good idea. Credit is the number one investment in life that one can make and it’s not worth making a few bucks to mess it up. Good credit means you get the best deal in buying a car, car insurance, housing, medical insurance and everything. You lose a bit of money that you saved and invested well you just lost it. Screw up the credit and it can follow you and cost you big bucks for up to 10 years!

And these so called Gurus are a scam just like the real estate gurus. You know darn well they are not doing the same thing that they tout as they have money convincing people to sign up or try for the easy money.

I hate to sound like your mom but this is a terrible idea. Borrowing to invest is a recipe for disaster, and these cards are going to spring higher rates, hidden fees and other restrictions on you eating away returns (assuming your investments are positive). You are playing with snakes and going to get bit.

Use the Convenience Checks with low Apr’s that some of the good credit card companies send to their customers. You can write the check to yourself as cash, and cash it at your local bank. You will be charged the fixed APR as listed by the company. Make sure that it is a fixed APR as in 3.9 or 5.9 %.

RD

Use your credit card to pay for normal household expenses and use the cash you would have used for groceries, utility bills etc to invest. Net result, you used the credit card balances to invest.