Credit Card Tricks

iVillage Member
Registered: 04-02-2003
Credit Card Tricks
Mon, 03-06-2006 - 3:44pm

I read frequently but post infrequently. I wanted to share a new trick for credit card companies. I just received a "pre-qualified" credit offer in the mail. The credit card has an Upfront Rewards program. If you transfer a 5,000 balance or combine 2,500 in balance transfers and a 2,500 cash advance. They'll send you a "free" Dell notebook computer (approximate cost $550). The current variable interest rate is 9.99%. The catch is that you have to maintain a 3,500 balance for at least 18 months or pay a $600 penalty fee. This is truly unbelievable. You would pay at least $1600 in interest over that 18 month period (if the interest rate stays the same which is not going to happen. It's worse if you take a cash advance at 19.99%). You could easily pay more than 3 times the cost of this computer in interest. The computer is so basic that it could be out of date by the time the 18 month period is up. I truly hope no one falls for this. I think I will tear up the response certificate and send it back. At least they'll have the pay for the return postage.

Momtochris