You might have seen that term, 0% balance transfer arbitrage, floating around the internets, one personal finance blogs, on quick money blogs, on any number of sites that deal with money and getting more of it. 0% balance transfer arbitrage is where you take advantage of an offer to earn a little more money for yourself on the side.

In the beginning, credit cards offered promotional 0% offers to folks who were willing to roll over their existing credit card debt to their card. The reason for this was that after the promotional period, the card holder would likely stick with the new card and thus make their interest payments to them. This is a win-win for both sides – cardholder gets 12 months of 0% financing, credit card company gets to earn interested after the promotional period.

Enter in the savvy credit card user. Now, with the ease with which you can get a balance transfer, many folks are getting a 0% balance transfer check and depositing it with a high yield savings bank like ING Direct. What this means is that you’re borrowing money at 0% and earning 4.6% (some accounts have as much as 5.05%) on it, a $10,000 balance transfer would net you $460 for absolutely no work whatsoever. $460 is nothing to sneeze at.

Are there pitfalls? Certainly, the effect on your credit score will be negative – but if you don’t plan on getting any big loans in the near future, this could be an easy way to boost your cash flow with little risk. Another pitfall is not watching the terms closely, there are cards that will give you a 0% balance transfer but charge you a fee, which can kill the deal. It’s important to double check that you’re getting a no fee balance transfer when you execute it.