Once we discovered that we could make easy money by borrowing at 0% and investing at a higher rate, we knew we needed to figure out ways to borrow the highest amount possible for the longest period possible. We waited anxiously by our mailbox each day in hopes of receiving a pre-approved offer of credit. On those days that a potential offer showed up, we eagerly ripped open the envelope to read what was inside. If it was a good offer, we immediately applied and then went back to waiting anxiously for the next one to show up.
We no longer do it this way. Technology has changed everything. We can now get everything we need immediately online, cutting the wait time and maximizing our results.
Before we go into the details and our Show-Me-Their-Money Step-By-Step, we will briefly identify the important factors that lead to great results.
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Key factors in choosing the right offers:
1. Length of offer - 0% balance transfer interest rate holds for the longest time possible (12-15 months or more).
2. Transaction Fees - Either none at all or capped at a specific $$ figure (i.e. 3% of balance with a maximum of $75). We are careful to never choose a card that has transaction fees of 3% or higher with no cap. Always read the fine print very carefully. This is
extremely important!
3. Ease of deposit - Some cards will actually transfer the money directly into our bank accounts over the phone (Bank of America for one does this). This allows us to start earning interest almost immediately. Most will send us blank Balance Transfer Checks a few weeks after we are approved for the card. We make these checks payable to ourselves and deposit them directly into our bank accounts (we are always sure to use ONLY the checks which are under the terms of our balance transfer offer). This is also
extremely important! |
And now, without further ado, here is the step-by-step guide which lists every step involved in the process.
The Show-Me-Their-Money Step-by-Step
Step 1: Know our credit scoresWe must know our
credit scores
before we start because, if our scores are over 750, we will qualify for most of the offers with exceptional terms. This is not only the 1st step but is also the most crucial. We must find out our score so that we know whether or not we can continue to Step 2.
Step 2: Apply for multiple lines of credit all at the same timeAssuming our credit scores are above 750, we want to identify the very best offers available to us and then apply for multiple lines of credit with multiple credit issuers. We will only apply for cards that offer 0% balance transfers with no or capped balance transfer fees. While these kinds of offers are few and far between these days, they ARE out there. You just have to know where to look.
Step 3: Locate and open high yield bank accountsWhile we are waiting for our credit cards and balance transfer checks to roll in, we locate and open up new bank accounts. With all of this new money coming in, we need to find a nice safe place for it. We can earn 4% and above on this money even in a terrible interest rate climate like we are in currently and still be FDIC insured and completely safe.
Step 4: Double check the terms & conditions once credit cards & balance transfer checks arriveWe are never too careful. Even though we specifically applied, and were accepted for, a specific offer, we ALWAYS double check the terms & conditions with the card when we receive it in the mail. We make sure all of the terms that made the card such a good decision in the first place still apply.
Step 5: Get the biggest credit limits possible through consolidationAlways keeping in mind that our ultimate goal is to get the biggest credit line possible with each issuer, we have applied for and received multiple cards from the same issuer. We will now call customer service and ask them to sweep all of our separate credit lines onto our new 0% balance transfer card, giving us the biggest possible credit line with which to play.
Step 6: Show Me Their Money!!!Once we have received our new cards in the mail and all possible balances have been consolidated, it is time to deposit their money into our bank accounts. Show Me Their Money! I love this part. I still say it just like I'm Rod Tidwell screaming it through the phone to Jerry Maguire.
Step 7: Sit back and collect interest from Their moneyAh, my favorite part. Making money while doing nothing. Our only responsibility is to set up a few systems that will either remind us to do certain things at certain times or automate them so that they are done automatically. |
We have set up a FREE 4-Day E-Course which goes into much further detail for each of the 7 steps and offers links to current 0% interest offers and links to bank accounts that pay out 4-5% annual interest on your money. Tips and tricks galore! Subscribe below.
