Use this credit card strategy to earn money and avoid interest for years

Leveraging fee-free 0% APR balance transfers and 0% APR purchase promotions can be a savvy way to manage finances, avoid interest, and actually earn money. 

The concept is quite simple, and you’ll need just two credit cards, one with a 0% APR purchase offer and another with a fee-free 0% APR balance transfer offer. During the 0% APR purchase promotional period, you’d charge all of your purchases to that card. When the promotional period is over, you’d pay off the balance by transferring it to the credit card that has the 0% APR for balance transfers. 

During these promotional periods, you’re earning money on the funds that you would have otherwise used to pay your bills each month. You could invest the funds, use them for a business venture, or play it safe and place them in a high-yield savings account. Just remember that you’ll need easy access to the funds when it’s time to pay off the balance transfer.

You could repeat the balance transfer process almost indefinitely, or for as long as your credit score can withstand it. Taking advantage of 0% APR purchase and transfer offers could lead to a drop in your credit score if your overall or individual credit card utilization rate is 30% or more. For this reason, it’s crucial to plan your purchases prudently so that you never reach the 30% utilization threshold. If possible, it’s also recommended to use this technique with multiple cards that carry the 0% promotional purchase rate. 

If you’re opening new credit cards to receive these offers, this could also negatively impact your score since credit checks and new accounts cause score decreases. This is why it’s important to be selective and have a strategy in place before even applying for credit cards.

With proper application planning that includes seeking out 0% APR purchase and balance transfer promotions, you could earn thousands of dollars each year instead of paying just as much in interest.