which doesn't look like a good deal at all.
NO its a bad deal. Its not at all a good deal.
Quite aside from that, if you have LIQUID assets which produce a return (after tax) which is LESS than you pay on your card why on earth would you carry a credit card balance which charges you MORE? It simply doesn't add up.
My point was that if I make 3% after taxes and pay 8.9% then I am paying an effective
annualized ,with no prepayment penalty,interest rate of 5.9 annual. Short term this is inconsequential.
three months is 25% of 5.9%.
BTW, I never touch the 18% stuff with a ten foot pole.
If paying a "surcharge" of less than 2% allows me to buy some New Zealand tickets when United Airlines is have an unexpected aggressive promotion in their premium cabin
,
then that is well worth 2%.
In theory assuming a perfect world, I should pay it from my liquid money market.
But as I posted I want money for a rainy day.
I clearly stated that I prefer for
psycological reasons to pay bills from transaction checking and not other savings , assets.
AX or Citi are NEVER appealing as a source of a cash advance.
As a self employed person whose income fluctuates , I want piece of mind, low blood pressure and reduced anxiety over a 2 or 3 % vig.
Plus if you throw them some blood interest once in a while, you'll shed your deadbeat profile with the predatory vampires a.k.a. credit card issuers.
I suppose it suits some people to carry a balance on their cards to deter them from spending more than they can afford but I can't think of any other reason to do it.
what about the reasons that I stated above.
If you have 1- an ultra secure salried position ,or
2- Are worth $30 million USD with $5 Million Liquid cash then I'd agree with you.
Personally, I don't want the first situation and , I am not
yet in the second position.