Originally Posted by outoftown
For someone looking for a MasterCard, this looks like the best deal, for the next year anyhow. An ad I saw in the Parade section of the Sunday paper a few weeks ago...
AT&T Universal MasterCard
0% on Balance transfers until March 1, 2005
Full 5% cash back on purchases made at supermarkets, drugstores and gas stations until 6/1/05, full 1% cash back on all other purchases up to a maximum of $300 annually
No annual fee, no balance transfer fees
Limited time offer, must apply by 7/15/04, ph 1-800-506-8737
I have had one of these cards for years, and mine earns points that require "thresholds" to get "cash" back, and the only kind of "cash" you can get back (that's a good value) is "gift cards" at one of number of common nationwide retail chains.
Thus you should check carefully how and when you get the "cash back" before you assume that it's better than the Chase card.
Meanwhile, the two "hooks" in the offer you quoted don't make sense to do together. The 0% is on balance transfers only, and the cash back is on purchases only, and if you are carrying a balance, then your purchases are subject to an interest rate too (and MUCH bigger than 0%!!!), because I'm sure the card has a fine print clause which says something to the effect that monthly payments are applied in whatever order makes them the most money, ie, if you transferred $2000 and make $100 in purchases and pay $200, the $200 reduces your 0% rate $2000 to $1800 and your $100 at the HIGH interst rate gets added! Thus by mixing a 0% transfer and "cash back" purchases at the same time, you'll lose a lot more money in interest rates than you'll save with the "cash back".