What is Digg?54 Comments
- angelwspr, on 10/12/2007, -0/+4if only visa & sony teamed up... then you could get a free rootkit computer...
- spadin, on 10/12/2007, -0/+2Credit card companies are evil. And if you are $5000 in debt, it's your fault for investing in something that doesn't make money for you. (I've been there too) Anyway, I think people, college students especially, need better education on credit cards before they take the plunge into the dark side.
- jasqwerty, on 10/12/2007, -0/+2Unless I read this wrong, it is 2 am, this guy is way off base in his analysis. See, the debt you already had on the card would cost you money anyway, so if you subtract the value of the laptop ($850) you actually paid 62.50 for an 18 month loan of $5000. Which is actually a loan at .08%, much lower than anything else you'll find ANYWHERE.
And of course, you don't have to pay a dime, just pay off one credit card with another credit card. See, when you reach the credit limit on one, just call them up and ask them to up it. They'll see that you do alot of business and pay promptly, and they'll raise it for you. This can go on indefinitely as long as you pay with cash advances on each card.*
:-) :-) :-) :-) :-) :-) :-) :-)
*Don't be an idot and actually try this, unless you're a college student. - molotov, on 10/12/2007, -0/+1The computer is FREE if you are going to have those balances anyway. They are trying to get you to switch to their products. Chances are you already have a card and are already paying some sort of interest.
Don’t immediately discount this as not being “free,” because the cost varies depending on each individual’s situation before switching to Visa.
Look at opportunity cost.
I’m surprised the cost worked out to be as low as $900. Visa is not making much money with this offer at all. They are counting on the long-term customer. - Jotham, on 10/12/2007, -0/+1If you're already in debt and are one of these people that perpetually stay in debt because they can't help buying stuff (which is the type of people creditcard companies want) then its actually a pretty good deal. His example deals with someone with no debt going into debt for the sole purpose of getting a laptop.
Bottom line: If you're not in debt, don't go into debt just for a free laptop... but if you're already a creditcard junkie, they want to be added into your wallet. - Mark_H, on 10/12/2007, -0/+1So, what if you had a bunch of credit card debt you didn't think you'd be paying off anytime soon? I know people like this, and for them it would probably be a deal.
- jasqwerty, on 10/12/2007, -0/+1LOL @ jeffreym
Good for you that your life is as interesting as that of a bean counter.
You realize that FICO scores range from 300-850, so I doubt 720 is the median. I would put it at the 3/4 mark. - jasqwerty, on 10/12/2007, -0/+1I mean .8%, still very low
- jasqwerty, on 10/12/2007, -0/+1Whoops, how about that. It isn't normalized.
300-499 = 2 percent of the population
500-549 = 5 percent
550-599 = 8 percent
600-649 = 12 percent
650-699 = 15 percent
700-749 = 18 percent
750-799 = 27 percent
over 800 = 13 percent
You know what sucks for you though bean counter, you and the 720 guy get roughly the same consideration in loans. - AnotherBrian, on 10/12/2007, -0/+1This is what I do with every CC application that comes my way.
http://www.thebestpageintheuniverse.net/c.cgi?u=junk_the_junk - inactive, on 09/06/2008, -0/+1The best mortgage rates, refinance, home loan, real estate, realty http://tophomemortgageloan.com
- hoowahman, on 10/12/2007, -0/+1i have 6k in cc debt and i only keep them on cards with 0% apr for a year...and then just switch em around. The only way to go.
- technstuff, on 10/12/2007, -0/+1Bah, I did this deal about a year and a half ago. Had $5000 on another card, paying 13.99% interest, transferred it to a card paying 8.99% interest, so for me, not only did I get a "free" laptop (as I would have been paying interest elsewhere anyway), but I also saved money by switching to a lower interest rate. BTW, once my 18 months was up to not get charged for the laptop, I immediately transferred the remaining balance on this card to a card with a 1.99% interest rate and cancelled the card.
- oepapel, on 10/12/2007, -0/+1"720 is not a great credit rating. It's average at best...probably because of all the cards you've applied for. Oh, and mine is 810."
Wow! Shock and revelation! The guy who carries a credit card balance for what appears to be years has a lower credit score than the guy that just goes to a website and clicks a button and voila! no balance.
For most Americans, the "click a button" option doesn't exist! Unless you are volunteering to let them dip into your obviously overflowing bank account, you should probably just shut your yap and realize that you are in a fortunate and minority position. You are probably one of those jagoffs that thinks that poor people are just unmotivated or dumb. Students these days are pretty much GUARANTEED to graduate with multi-year debt. New families also statistically go into debt when their family first starts out.
The "Working Poor" frequently would be better off by putting their feet up and going on the government teat but continue to work anyway. America is broken for a large segment of society and credit cards are bandaids that cover the gaping cracks in education, health care, finance and insurance.
I'm really glad that your credit score is so high. Hopefully, no tragedy will befall you and cause you to have to walk a mile in a less fortunate person's shoes. And if you do, hopefully you won't run into a jerk that blames you for your problems instead of sympathizes or helps.
To my fellow diggs, I apologize for this rant but this financial "mine is bigger than yours" crap justs smacks of intolerance and privilege. - Captain_Obvious, on 10/12/2007, -0/+1Even if you're not already in debt, this isn't a bad deal.
If you put $3500 onto the card, that frees up funds for you to do what you want with. Put that $3500 into a mutual fund with a (very reasonable) 8% average annual return, and the supposed $911 laptop costs you $483. - SpacePirate, on 10/12/2007, -0/+0This is an excellent article... I love reading the "offers" these companies send me in the mail, they're a great way to keep my analytical skills top-notch. :P
- garg, on 10/12/2007, -0/+0hehe.. where can I get this offer?
- IHaveIssues, on 10/12/2007, -0/+0I love it when people debunk these ***** offers.
- thatedeguy, on 10/12/2007, -0/+0The card in question. A Dell Desktop is also available.
http://www.4myupfrontrewards.com/
thatedeguy
http://www.thatedeguy.com
http://www.supergeekblog.com - tolbs, on 10/12/2007, -1/+1You couldn't give me a dell laptop for free...but this is still very informative. Dugg.
- jak119, on 10/12/2007, -0/+0Wow that really is pathetic, oh well what can you do about it
- 7uan, on 10/12/2007, -0/+0There is no such thing as a free lunch!
If it sounds too good to be true, then in 9 out of 10, that's just the case.
end of story. - ray023, on 10/12/2007, -1/+1"Even if you're not already in debt, this isn't a bad deal..."
Terrible, terrible recommendation!!! If any of you have good credit and you are paying $0.01 in interest, then you're paying TOO MUCH!!!!!
There are tons of 0% offers CC companies send out all the time. And they come with no balance transfer fees. If you're not taking advantage of that, then you're throwing your money away.
My wife and I have paid off over $25,000 dollars worth of debt in five years and have not paid ANY MONEY towards interest.
It takes discipline to pay it off, but it can be done.
Don't consider this offer or any other one like it.
Low interest rate balance tranfsers are the way to go. Just read the fine print and make sure there are no fees associated with it. - Dakota65703, on 10/12/2007, -0/+0First - If you have no debt then Hell no Dell
Second - Who the hell wants a dell, if you have that much debt, you prob have a computer, and need to focus on the debt not a new computer - jOOs, on 10/12/2007, -0/+0Just total f**king thievery!!!!
- capn_caveman, on 10/12/2007, -0/+0Great...now you can take that brand new laptop and use it to create a spreadsheet that will outline your financial situation to your lawyer who will help you file bankruptcy. Sweet deal!!!
- serpentor, on 10/12/2007, -0/+0So why not pay it off in full immediately and get hit with the $600 fee, still cheaper than the laptop.
- forddorr, on 10/12/2007, -0/+0Why not turn around and sell it?
- chaosfire, on 10/12/2007, -0/+0How do I do this? I gots me plenty of debt on a card with a much worse interest rate than that, and I need the 2500 to pay off a loan shark by Dec. 2nd or I'm gonna get my legs broke (not completely kidding)
- dramatools, on 10/12/2007, -0/+0It's not that bad on the surface, but the early paydown penalty kills it. I received this offer and promptly added it to the big circular file. Credit card issuers make most of their money on interest charges, so they want you to carry as high a balance as long as possible. I'd just as soon let my employer buy me a Dell laptop and save my own money for a PowerBook.
- number8888, on 10/12/2007, -0/+0If you already have 5000 lying around somewhere then you do get get the laptop for free, as long as you don't spend the more than 1500 of it during the 18 months. That wouldn't be such a bad deal then would it?
- ronmexico, on 10/12/2007, -0/+0"Ray023, you are a moron. I've put $50,000+ on one credit card in the past year, and not paid a penny of interest on that either. It doesn't take discipline, it takes logging onto a website, and pushing the "pay balance" button."
Wow, you should be proud of yourself, I have zero credit card debt. Try changing your lifestle, you'll be glad you did. - avtomat, on 10/12/2007, -0/+0^^^ "Wife + credit card = financial ruin."
I have checked the above calculation, and yes, this is in fact true. - Sirocco, on 10/12/2007, -0/+0Wife + credit card = financial ruin.
- nineowls, on 10/12/2007, -0/+0credit card debt: the kiss of death
now u "No!" - Captain_Obvious, on 10/12/2007, -1/+1Ray023, you are a moron. I've put $50,000+ on one credit card in the past year, and not paid a penny of interest on that either. It doesn't take discipline, it takes logging onto a website, and pushing the "pay balance" button.
If there wasn't a prepayment penalty for the free laptop deal, there wouldn't be any reason to maintain a balance on this card either. But there is, and for the $3,500 loan and the free laptop, it's actually a good deal. If you wanted to get the $900 laptop for $483 or less (after interest), you could do it. But if you actually think that my post was a "Terrible, terrible recommendation" you must suck with money. - oepapel, on 10/12/2007, -0/+0"Each account he opens goes on his credit report. Bad credit is not just how much you owe but also how much you CAN owe. He's ruining his credit rating"
I'm making the assumption that he is cancelling most, if not all of his cards after he has paid them off. For credit rating purposes, it does make sense to have 1 long term card with a good record. The rest can come and go and after a few months they are dropped from any FICO calculations. As long as the card is closed, it's credit limit can't be used against him. - jeffreym, on 10/12/2007, -1/+1To the moron who keeps transferring his credit balance to different cards that have 0% interest...
Each account he opens goes on his credit report. Bad credit is not just how much you owe but also how much you CAN owe. He's ruining his credit rating. - Coslenchip, on 10/12/2007, -0/+0Crap, I made a calculation error. All of my numbers are actually about $100 too high. The real cost is just over $365. Also, it only takes a 12% return to make the laptop actually free.
- Coronaboy, on 10/12/2007, -0/+0They should outlaw this crap!
- Mellrocks, on 10/12/2007, -0/+0That is a crappy offer...but if anyone wants a good offer, try this one...u only have to sign up for 1 offer...
http://www.notebooks4free.com/default.aspx?r=701091
It's simple:
Signup
Complete 1 online offer from our large list of advertisers
Refer 18 friends who each complete 1 offer
That's it! We'll send you your gift, absolutely free.
Seriously, this is a lot better than those other ones who have you complete like 12 offers to get your item.....you only have to complete 1 offer!
No misleading or complicated requirements
We are 100% up front with the requirements of getting a free gift.
Unlike many free gift sites, we don't create confusing hoops to
jump through or put requirements in fine print. Our requirements
are simple and straight forward.
We don't ask you to complete unnecessary surveys or sign up for
promotions which do not contribute to you getting your free gift.
NO Spam. Your information is used solely for email communication
and shipping your free gift. We do not sell your information to
third parties.
http://www.notebooks4free.com/default.aspx?r=701091 - Coslenchip, on 10/12/2007, -0/+0I'm obviously about a year late on this, but I'm sure I am not the only one catching up.
Real Cost: $475 or less, value of (current) laptop: ~$725
Assumptions:
1. You have no credit card debt that you are currently paying interest on (if you do, the cost may be less)
2. You have, or can obtain another card (not the one in question) with a $5000 limit
3. Interest rates do not change for you for the next 18 months.
4. You make all payments on time.
5. You get the 9.99% rate on this card (sorry, if you get the 10.99% rate, that adds ~$65 in the end.)
What you do:
1. Use a convenience check on a card you currently have for $4925.
- Assumes a $75 charge to use the convenience check.
- If you already have a $5000 balance somewhere, or can write a check with a lower fee, kudos to you
2. Deposit the 4925 in an online savings account getting 5.5% APY (~.45% per month)
3. Next month pay $750 out of your savings account to the credit card
4. Every month after that, pay 2% of the remaining balance (this will be at least the minimum payment, likely more)
- I would recommend having the deduction happen automatically so that you don't even think/forget about it.
5. 18 months later, your balance on the credit card is ~ 3515, but the amount in your savings account is only 3040. Therefore, the laptop costs ~$475.
Note 1: Aside from a possible dip in your immediate credit rating, which should be small, if any, there is no cost for the laptop at all for 18 months. The ~$475 cost is payed 18 months later.
Note 2: I personally get a significantly higher interest rate on my investments. Using 8% APY, the laptop costs ~$337. Using 12% APY, the laptop costs you ~$118. And finally, if you can get 14% APY, the laptop actually is FREE. - jeffreym, on 10/12/2007, -0/+0720 is not a great credit rating. It's average at best...probably because of all the cards you've applied for. Oh, and mine is 810.
- TakenAback, on 10/12/2007, -0/+0This reminds me of the free iPod mini that Citibank offered for a high-end checking account that would charge you the full cost unless you maintained a big minimum balance, and paid high monthly fees. :(
Personally, I'm going with one of those offres where you sign up with Blockbuster and have friends do the same. They eventually send you a laptop as an incentive. Here's what I mean: http://urlsnip.com/670065 It's not an overnight thing, but it's a better bet than doing anything that could wreck your credit.
Additionally, I almost went for one of those el cheapo model laptops during Black Friday at Best Buy, but they tag on savings due to ISP contracts like AOL. In the long run that too is gonna cost you too. Just remember to read the fine print... - BBSCI, on 10/12/2007, -0/+0You miss the point. MANY people have credit card balances well over than and pay a higher interest rate. For them it's a deal. Like so many things, it depends on the individual situation and can't be generalized.
- MarvinMan, on 10/12/2007, -0/+0Go to hell, Visa. Digg.
- ray023, on 10/12/2007, -0/+0"720 is not a great credit rating..."
I actually said it was ABOVE 720. You may not be proud of it, but it works for me. Never been denied a loan or a credit card and always get the best interest rate.
Plus, I looked at the picture you have of yourself on your blog. I think you've got about a 25-year head start on me. Maybe my credit rating will be that good when I'm your age. My only hope is that I won't be as grumpy or condescending. - ray023, on 10/12/2007, -1/+0I love the naysayers and flamers on here.
jeffreym: Do you even know what your credit rating is?
I know mine and it is well above 720. It's not like I apply for a card every two months. The balance transfer promotions I use last for over a year. I've been doing this for the past five years and will be completely out of credit card debt soon. If removing my CC debt this way has negatively affected my credit rating, it's been minuscule at best.
For Captain Obvious:
I don't think we're comparing apples to apples here. I would imagine the $50k *you're* talking about refers to charging your monthly expenses and then paying it off before your grace period is over. Good for you. However, that’s not what I’m talking about. This may seem like a foreign concept to you, but not everyone can graduate and/or get married without a little financial baggage.
My wife and I had a lot. Hence, we couldn't hit the "pay balance" button and watch the number magically disappear. So, even though you don’t approve of our method, it worked for us. We were able to pay off a large amount of CC debt without having to pay a cent in interest.
BTW what, besides the marketing flier, says the laptop is worth more than $800? The website touting this promotion (http://www.4myupfrontrewards.com/) has the Dell Inspiron 1200 listed on it. That particular laptop is selling at Dell *RIGHT NOW* for $499. So, even if your math is correct, you're only saving $16.00. And let's not argue about shipping charges b/c you know Dell has a "free shipping" promotions ALL the time.
I still stand by original statement: It is a terrible, terrible idea to use this offer regardless of your current credit status or financial debt. - Acill, on 10/12/2007, -1/+0Nothing is ever free. No digg
- Suvana, on 10/12/2007, -1/+0*VISA* aren't making any money at all. It's the organisation issuing the card. It's amazing how many people think Visa issues cards and bills - they actually have nothing to do with cardholders. This isn't a laptop "from Visa".
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