The idea of making money by means of credit cards is widely discussed in the media and in personal finance weblogs. There are numbers of methods described, all of them having advantages and disadvantages. Making money with credit cards has attracted financial analysts' attention and it is evaluated as an important financial phenomenon. Let's look at the most popular methods of increasing capital from playing cards right. Is this really a right game?
The method called 'stoozing' (after the blogger who was the first to describe and promote this technique) is based on precalculated use of 0% APR credit cards. It is as simple as this. You apply for a credit card that has a good grace period and 0% intro APR. After maxing the card out, you place the money lent onto a savings account or make some other investment providing 100% safe and sure interest. After the grace period ends, you can either pay off the debt (the interest earned on the savings account will be your profit) or transfer the balance onto a credit card with 0% on balance transfers, thus making your money go on working where you invested in to. Perfectly splendid? It would be, but there are some 'buts'.
To make this method work, one should be prudent, as it's obligatory to make monthly minimal payments and avoid making purchases with the card in work - otherwise there will be interest rate and fees to pay. Besides, you are supposed to spend hours and hours searching for a worthy investment and a credit card with the best terms. A great disadvantage of the technique is that you can lower your credit score immensely, applying for new credit cards and transferring your balances so often. Good memory is also required - you will have to keep in mind the due dates to make necessary transactions.
The attractive features of good credit cards (rewards, low rates), if used wisely, can also help you raise your capital. By increasing expenses on your cash back credit card (if you start making gasoline or food purchases with the card) you can earn more rewards. The latter can be invested in the stock market or you can transfer it to the savings account. Other rewards, such as airline miles, membership bonuses, free tickets and the like can undoubtedly be considered as a way to earn. Sometimes those items are not available for money or they are very expensive.
In some cases, purchase protection serve as a means to return the money you've spent on damaged or poor quality merchandise. The law enables consumer to withhold payment for such goods, provided that you have an agreement with the merchant. But in this case you just spend less instead of earning.
A close look of an intent consumer gave him a clear picture of how banks earn money on thousands like him. So he found let-outs in credit card industry and invented a number of tricks to earn on those who are trying to earn on him. Is the game worth the candle? Each of you decides for yourself.


Anne R. Sparks is an experienced financial consultant. She specializes in credit card consulting and monitoring of credit card market. She has published a number of articles about credit cards and finance.