Personal Finance

CC arbitrage on a 0% for 12 months AmericanExpress offer?

  • Last Updated:
  • Feb 27th, 2015 11:02 am
[OP]
Newbie
Feb 17, 2012
32 posts
6 upvotes

CC arbitrage on a 0% for 12 months AmericanExpress offer?

So American Express sent me a special offer for 0% interest rate for 12 months on my SimplyCash card. I'm wondering if I could use that to make some 'free' money??

This offer is a bit different from the MBNA Platinum Plus 0% balance transfer for 12 months offer. The beauty of the MBNA deal is that it's a balance transfer, so you can put the money into a TFSA savings account. The American Express deal is better in that there is no 1% processing fee (as with MBNA), but you can't do balance transfers - you need to 'buy' something from a place that accepts AmericanExpress.

I'm wondering if anyone has any ideas? Is it possible to buy Mutual Funds with an American Express card? Any other investment tricks that could work that will have returns??
4 replies
Deal Fanatic
User avatar
Jan 27, 2007
5108 posts
971 upvotes
T.
Will they send you a convenience cheque that is eligible for the 0%?

Write it to yourself or the bank.
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
Member
Aug 20, 2014
226 posts
89 upvotes
Toronto, ON
Does it mean you don't have to pay your credit card bills for 12 months? Or just keep making minimum payments?
You could buy gift cards from places that accept AE, such as Rexall, and use it for groceries, gas etc. Rexall sells a variety of gift cards that can be used in other stores.
[OP]
Newbie
Feb 17, 2012
32 posts
6 upvotes
sqara82 wrote: Does it mean you don't have to pay your credit card bills for 12 months? Or just keep making minimum payments?
You could buy gift cards from places that accept AE, such as Rexall, and use it for groceries, gas etc. Rexall sells a variety of gift cards that can be used in other stores.
Yes, you're required to make the minimum payments every month if you carry a balance, just like MBNA. The difference I guess is that you can continue using the card, and any balance you carry won't have interest charged for 12 months.

And I guess you're right, instead of doing a balance transfer and investing it, I could simply use the American Express card for all my purchases, then every month set aside cash for the purchases I made, but instead of paying it back, just put it into a savings account - then at the end of the 12 months simply pay it all back. The only issue with this is that you don't get all the money up front, so interest returns will be much lower. Not sure what the advantage of buying gift cards would be??

Top