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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (18025)	4/17/1998 7:30:00 PM
From: Nancy	Read Replies (2) \| Respond to of 50167

<<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.