Yep. I buy T-bills instead, since CDs are locked with lower
rates. -g- Never seen rates at banks higher than short-term
treasuries. It hurts your credit score, but the credit
score improves immediately after you pay it all back.
The main danger is that they change the rate on you without
warning. Then the fact that the $ is tied short term really
helps. Another way to rob them is to spend on these rewards
credit cards. Some good ones pay about 2% back, you can get as
much as 5% back on gas and food purchases. I get about $1,000
per year that way. Not much, but hey, it's free cash! I'll
take it. I
recommend Blue cash from Amex. Pays 5% cash back for gas and
food, 1.5% cash back on everything else. Citi was another
good one, but they closed it - lost too much money, I guess -g-
. That explains why some folks are using credit cards to
purchase everything, not their checking account. It's
convenient, it's less risky (credit cards are better handling
problems if you have ones), and it involves cash back or other
rewards.
In my view, once the credit bubble bursts, we'll see these
upside-down things disappear - no more rewards for using
credit cards, and lower banking fees. So far, not happening,
so why not use it while it lasts, provided that one is prudent
with credit card purchases, and reads all the fine print. |
