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Author: synchronicity Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308363  
Subject: Re: Poll: Which reward card fits best? Date: 10/28/2005 10:14 AM
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Would the 1-time cash advance fee have spoiled the whole thing?

Nope. It didn't have one.

Also, those that do usually (but not always) have a limit (X%, or max of $Y). A 20K cash advance with even a $50 fee works out to a 0.25% rate.

At the time I was thinking about cash flow issues, rather than thinking "ya know, I can just toss that into a MMF where the return is already almost the same as the fixed interest I'm paying out and will likely go higher in the near future. So I can increase my liquidity and play the arbitrage game."

Oh well, didn't do it.

I will mention (as various people have conniption fits reading this) that I would never recommend this sort of thing to someone with a bunch of CC debt who is just starting to get their spending habits in order. One has to have their financial house in order to do this.

That's one of the problems with this board, there are two large groups of people here. One is the "oh my god I got into a lot of debt and need to get out, how do I reduce my spending and handle my CC debt" crowd. I'm a disciplined person who has excellent saving habits and has my finances in order, how can I use CC's as a tool to help my savings and increase my net worth".

Having been in both groups, I understand the issues of both, and also understand that it's a slow transition from one to the other. The confusion comes when something intended for one group is looked at by the other group, and it's tough to figure out for each person when they can start looking at CC's as a tool for good rather than an icon of evil. For some people they can never do that, for others it's an easy transition. Go figure.

And some people never had debt problems in the first place, believe it or not.

-synchronicity
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