<<visa:
ok. i will look at fine print. but I am sure it was one yr. I would not even have read the
junk mail if it was 1 month. Any one can it , i m sure. would u be intrested if it is one
year? it is proabably in my fresh trash.. i will dig itup.>>
sonki,
they may say the first month, or first 3 months the rate is = to 4.9% APR - that means whatever period the 4.9% annual rate is applied to only good for that period. think about this, they have to make money right ? where can they get their capital to loan it to you ? they have to get it below 4.9%, right ? in order to earn the spread.
with even fed fund rate is at 5 1/4% or 5 1/2 %, where can they get money lower than 4.9% ??? so they can loan to you at 4.9% ?
ok, may be the bank gets it from its deposit account owners or mmf owners to whom it pays only 2 to 5% on a tier basis, so they do get their cheap money this way. But also remember, they have to cover overhead and bad loan reserve - remember, credit card loan has NO collateral, you can default and all they can do is to sue you, unlike a mortgage, they can foreclose your house.
if the 4.9% APR is good for the first 12 months, then you want to sit down and do some hard calculation, figure out all the tax effect, and see if it is a good deal. |
