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Credit Card Arbitrage
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Credit Card Arbitrage refers to the process of taking a free or low interest loan from a credit card company, depositing it in a savings account that offers a high rate of interest, making the minimum payments on the card to avoid defaulting and then keeping the profit from these transactions.
Individuals that engage in credit card arbitrage profit from the interest rate spread between the money received and money paid, similar to how normal arbitrage transactions work.
