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Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!ihnp4!zehntel!tektronix!uw-beaver!teltone!teldata!ted
From: ted@teldata.UUCP (Ted Becker)
Newsgroups: net.consumers
Subject: Free Credit Cards Are Not
Message-ID: <298@teldata.UUCP>
Date: Fri, 6-Apr-84 14:21:50 EST
Article-I.D.: teldata.298
Posted: Fri Apr  6 14:21:50 1984
Date-Received: Sun, 8-Apr-84 07:08:15 EST
Organization: Teltone Corp., Kirkland, WA
Lines: 13

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All of the free credit card offers I have checked out require a minimum
balance of $500.00 or more in a checking account.  This becomes captive
money you cannot use and are not drawing interest.  If you were to put
that $500 in a savings account you would receive $27.50 per year in
interest out of which you could pay a $15.00 fee for the credit card
and still have enough left over for pizza and beer.

Debit cards defeat the advantage of free credit for 30 to 45 days on your
purchases.  When your monthly credit charges get up to $500.00+ this free
credit can increase you net earnings in a money market fund by $4.00 to $6.00
per month over what it might have been if you had kept the cash and spent
it right away.