I dont get it. You still have to pay off the card that you transfer the balance too so youre still simply borrowing $2000. Why go to all the extra trouble.?
Your first strategy is reckless- lose the $$$ and you still have the debt = bad idea. As for earning rewards, good thinking but implementation is flawed and there is always a spread when dealing in bullion. If you want real strategies to earn rewards- check out the finance forum on fatwallet.com- though recently the ideas aren't as good and the typical post seems to be "help I am a moron who doesn't know how to handle money- bail me out" My 2 cents.
you must have 0% apr on balance transfers on that card. people do make money in simular way with credit cards, but they usually trying to earn interest, not trade with it. here is much more simple approach-you open new credit with 0% apr on balance transfers for next 12 month or more(they may give you as much as 10K or even more), you transfer money to another credit card with zero balance and then request check. that's it. you don't have to buy anything. you got 10G's with 0% for next 12 months. google stoozing
Here's a better idea: Take a credit card balance transfer check. Write your name on it. Deposit it at your bank. Now you have accomplished the same thing with a lot less work. You do know that you can use those balance transfer checks for anything, not just paying off other credit balances, don't you?
Very bad idea. Balance tranfer checks charge high interest and cash advance fee's. A credit card check is the same as a cash advance and they charge 50% and more interest which is compounded "daily". There is no payoff grace period. They charge $500.00 to take out 5K. Bad idea. No cash rewards given for cash advances with credit card checks. Bad idea. It has to be an item purchase if you want the cash back rewards with zero interest and a payoff grace period.
You are the one that suggested using a balance transfer check: But I agree...its a bad idea you had. BTW, if you buy something using a credit card that gives you rewards and then return that item then you dont get the rewards.
Balance tranfer checks used to tranfer balances from one CC to another are not charged fee's and some give zero interest. If a balance tranfer check is used to deposit money into your account, then they chage high interest and fee's. Bad idea.
You are wrong, you do not have to pay off another credit card to take advantage of credit card balance transfer checks. What you are suggesting isnt new, lots of folks do it routinely (take a zero percent loan using credit cards) Read: http://www.fatwallet.com/t/52/632935/