Benjamin Franklin once said, “Either write something worth reading or do something worth writing.”
Last Sunday’s edition of Market Bites discussed why signing up for a cash-back credit card with no annual fee might be one of the smartest hedges against Trump’s proposed 10% cap on interest rates.
Lowering credit card interest rates to give debt-burdened households some breathing room is a good idea in principle. In practice, it would likely lead many issuers to slash their rewards programs and sign-up bonuses. For financially savvy consumers, that could mark the end of a controversial capital-building tactic that nearly all personal finance writers avoid discussing: using a 0% balance-transfer offer to temporarily borrow money for investment purposes, then paying it off before the promotional period expires.
If you have good credit, many cards offer 12-, 15-, or 18-month 0% APR balance transfers that allow you to move funds into your bank account via direct deposit or check. These offers typically charge a one-time transfer fee of about 3%, but no interest accrues as long as the balance is repaid before the deadline.
Find an investment yielding more than 3% annually — three-month Treasury bills currently yield 3.64%, and Capital One’s savings account pays 3.30% APY — and the loan is already profitable.
However, anyone considering this approach needs to be disciplined.
You must have the cash to repay the balance before the introductory period ends, and the investment itself should be relatively conservative and liquid. This may sound obvious, but one quick look at the WallStreetBets subreddit reveals countless traders who’ve ruined their finances by borrowing money for speculative options trades.
Rather than discussing a hypothetical investor, here’s a real-world example of using borrowed credit card funds to purchase an asset.
In October 2024, Chase offered me a 12-month, 0% balance-transfer promotion.
At the time, I was confident that CME Group ($CME) would declare a special dividend within the next two months. It was a stock I’d been buying all year and one I liked for its strong total returns and consistent, inflation-beating dividend growth.
After running the numbers, I requested a $10,000 balance transfer.
The transaction carried a $300 service fee and required monthly payments of roughly $860 to eliminate the balance before interest would begin to accrue.
I purchased the shares, and CME declared a $5.80/share special dividend the following month. Between predictable cash flow and some additional income — primarily from e-commerce sales and book royalties — the balance was paid off one month before the promotional period expired.
Current Balance
Here are the key lessons that experience taught me, and how they may apply to you.
Do your homework and think independently — Bad investors lose money because they speculate or chase assets that are already severely overpriced after a major run-up. If you’re buying individual stocks, you should always be able to articulate why you own the company and what the realistic upside is.
Only borrow what you know you can repay — In embezzlement cases, offenders often convince themselves the theft is temporary and that they’ll pay the money back. Unfortunately, repeated borrowing turns a manageable amount into an unrecoverable loss. A similar phenomenon can happen when borrowing money for an investment or business idea. If you choose to borrow, calculate a repayment balance you know you can cover, and be conservative in case of an unexpected financial emergency.
Respect the deadline — A 0% balance transfer is only “free money” until a fixed date. If the balance isn’t paid off by then, it becomes very expensive. Have a realistic, actionable backup plan to ensure you meet the deadline.
This report isn’t a sales pitch to go out and borrow money. But, using a 0% APY balance transfer strategically isn’t something that gets much attention. Most personal finance content is written for general audiences and avoids controversial topics such as leverage.
For the majority of people, avoiding debt entirely is the right choice.
But for disciplined investors with stable cash flow and a clear plan, a 0% balance transfer can be a tool instead of a liability.
Here’s an un-boring way to invest that billionaires have quietly leveraged for decades
If you have enough money that you think about buckets for your capital…
Ever invest in something you know will have low returns—just for the sake of diversifying?
CDs… Bonds… REITs… :(
Sure, these “boring” investments have some merits. But you probably overlooked one historically exclusive asset class:
It’s been famously leveraged by billionaires like Bezos and Gates, but just never been widely accessible until now.
It outpaced the S&P 500 (!) overall WITH low correlation to stocks, 1995 to 2025.*
It’s not private equity or real estate. Surprisingly, it’s postwar and contemporary art.
And since 2019, over 70,000 people have started investing in SHARES of artworks featuring legends like Banksy, Basquiat, and Picasso through a platform called Masterworks.
23 exits to date
$1,245,000,000+ invested
Annualized net returns like 17.6%, 17.8%, and 21.5%
My subscribers can SKIP their waitlist and invest in blue-chip art.
Investing involves risk. Past performance not indicative of future returns. Reg A disclosures at masterworks.com/cd
Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.
