Credit Card Financing
I have historically used credit cards extensively to finance a portion of my stock portfolio. But now, credit card companies are making it harder to arbitrage.
In the past, I would receive cash advance offers for 0% financing for at least a year, with usually a $50-$100 transaction fee. It was easy money to take that money, invest in a money market or stocks and lock in some attractive returns.
Lately, however, the offers haven’t been as kind. I’m not sure if they caught on to my money making machine or if interest rate increases or credit defaults have made the companies reign in their offers.
In any event, I would like to roll over some cheap financing but am finding most of the offers lacking. At least I should have the cash to pay off any debt coming due. But I am going to miss the free lunch.
