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From: koch@holst.DEC (Kevin Koch LTN1-2/B17 DTN229-6274)
Newsgroups: net.invest
Subject: Cash advances are not interest free!
Message-ID: <228@decwrl.DEC.COM>
Date: Thu, 2-Jan-86 10:42:23 EST
Article-I.D.: decwrl.228
Posted: Thu Jan  2 10:42:23 1986
Date-Received: Fri, 3-Jan-86 04:45:08 EST
Sender: daemon@decwrl.DEC.COM
Organization: Digital Equipment Corporation
Lines: 16

>I heard an interesting one on TV the other night.  It goes like this:
>     Acquire a large number of VISA cards.  
>     Find a house to buy, offer seller CASH TOMORROW ... for 70-80%
>of the market value. 
>     ... get a cash advance on all those VISA cards.
>     Pay for the house using the cash.
>     Refinance the house for 80% of the value and pay off the VISA
>cards within 30 days (to avoid the interest payments).
>     .
>     .
>     .

     One problem with this is that the credit card companies only
offer free floats on merchandise, for which they get 4% or so anyway.
When you buy cash with your credit card instead of merchandise, you
start paying interest from the day you get the cash.