Update 11: March 17th, 2004 current terms: Transfer $5000 from another card, keep a minimum balance of $3500 for 18 months at 9.99% APR (or pay a $600) penalty.
APR info: Current APR 9.99%. Purchase/Balance Transfer/Special Cash Advance APR calculated by adding 5.99% to the Prime Rate (published in the WSJ), but never to fall below 9.99%. Normal Cash Advance APR is calculated by adding 15.99% to the prime rate, never to fall below 19.99%
Grace Period for Purchases: 25 Days
Balance Calculation Method: Average Daily Balance (including new purchases)
Systems available: IBM Thinkpad R40e Specs: * Mobile Intel® Celeron® processor 2.0GHz * Microsoft® Windows® XP Home Edition * 14.1" XGA TFT display (1024x768) * Integrated ATI® RADEON™ IGP 330M graphics * 128MB DDR SDRAM * 20GB hard drive * CD-ROM * under 6 lbs * $849 value (according to them)
Dell Inspiron 1100 Specs: * Intel® Celeron™ 2.3 GHz * 256MB RAM * 20GB hard drive * 8X CD-ROM * 14.1” XGA TFT Display * Integrated 56K Modem and 10/100 NIC Ethernet * Integrated Intel Extreme Graphics * just over 7 lbs * $800 value (according to them)
Original Post: June 10th, 2003
FULL STORY:
If you have excellent credit, a VISA card is now available that offers a free HP "Evo" laptop computer for making a minimum $5,000 balance transfer. The new "Universal Savings Bank Platinum VISA" also offers a competitive 10.99% variable interest rate on purchases as well as cash advances, and carries no annual fee. The only caveat to the offer is that you must maintain a balance of at least $3,000.00 for the first 12 months, or a $500.00 penalty fee will be charged to your account. Wisconsin-based USB is offering the "Compaq Evo N1015v" notebook PC which retails for $999 with a street price around $800. USB says it usually takes four to six weeks to receive the computer after the account is opened and the balance transferred. If you do not have $5,000 worth of balances to transfer, you may take the difference as a cash advance up to $2,000. For now USB is waiving cash advance fees and is extending the purchase APR of 10.99% to cash balances. For more information contact USB between 8:00 a.m. and 5:00 p.m. EST, Monday Friday at 1-888-826-5022 and mention “Evo” when you call.
CNet Reviewnote: both reviews are for lower spec'ed versions of the N1015v. systems from this promotion have faster CPUs 1.53 vs. 1.2, DVD vs CD drives, and 14.1 vs 13.3 LCDs. But they have nice pictures of the system design
update 3: to keep a balance above $3k with a $60 minimum monthly payment, you need to carry about $3065 by the end of every billing cycle.
3065 - (3065 * .02) = 3004
the total finance charges in 1 year (11 months of interest) is: [3000 + (65 * 11 months)] * .1099 = 408. that's the nominal cost you end up paying to partake in this promotion.
the money you get back for using a cash back CC to buy ibonds is:
for 1% cards: 5000 * .01 + 5000 * .0466 = 283 real cost for laptop: 408 - 283 = 125
for 1.5% cards: 5000 * .015 + 5000 * .0466 = 308 real cost for laptop: 408 - 308 = 100
keep in mind that to get the full 4.66 ibond rate, you'd actually have to hold them for 1 year 3 months. cause there's a 3 month interest penalty for withdrawing before 5 years. if you want to withdraw in 1 year, you actually get 3/4 of the interest for the bond
Update 4: as of June 12th, they've changed to terms so that it's no longer $5000 transfer, maintain $3000 for 1 year or pay $500 penalty. the new terms are transfer $5000, maintain $5000 balance for 1 year or pay $800 penalty.
Update 6: call 888-222-8714 option 2, 1 for automated balance information if you want to check the status of your balance transfer thanks huygp
Update 7: as of August, the Evo N1015v has been replaced by the Compaq NX9005. 14" LCD, 1.8GHz Athlon (2200+), XP Standard, 20GB HD, Firewire and DVD. 4 hour batterylife pic 1pic 2pic 3pic 4pic 5pic 6pic 7pic 8pic 9pic 10thanks ozziegn!
Update 8: November 4th, 2003 As of November 3rd, new US Savings Bonds rates are I-Bonds: 2.19% EE-Bonds: 2.61% New USB Promotional terms: Transfer $6000, keep $4000 balance for 18 months or pay $700 penalty. For all intensive purposes, this deal is dead to people who don't already have a similar debt and paying a similar APR to another credit card company.
Update 9: December 8th, 2003
see my last post for how to get the laptop for around $250 in real costs
Update 10: December 30th, 2003 with the demise of the CC+Bond program, it looks like deal engineering is completely written off for this. going forward, this will only be good if you already carry this much debt on a similar APR'd credit card and are not getting anything for it.
current terms: Transfer $6000 from another card, keep a minimum balance of $4000 for 18 months at 10.99% APR (or pay a $600) penalty)
this was brought up before and someone i think did the math....is it really WORTH it to keep that balance in there for 12 months? can someone do the math again???? please?!?!?!?! i really need a laptop, but not if it's gonna cost me an arm and a leg!
annfab
Shopaholic Member
posted: Jun. 10, 2003 @ 4:46p
I too would like to know the answer to that. How much would it cost us to keep that $3000 for 12 months. If it is only $200-$300, I might consider doing this. This computer isn't a refurb ,is it?
Doggus
Member
posted: Jun. 10, 2003 @ 4:49p
lemonhead said:
<< this was brought up before and someone i think did the math....is it really WORTH it to keep that balance in there for 12 months? can someone do the math again???? please?!?!?!?! i really need a laptop, but not if it's gonna cost me an arm and a leg! >>
My math for dumbasses says 10.99% on $3000 is $329.70. 12 months of that B.S. is $3956.40. Anyway you stack your beans, if a finance company is giving something away, it's not a good deal for you, it is for them. But I guess if your the type to carry balances then maybe it is better than nothing. I have lived out of the back of my truck before I would carry a balance on my cards.
<< I too would like to know the answer to that. How much would it cost us to keep that $3000 for 12 months. If it is only $200-$300, I might consider doing this. This computer isn't a refurb ,is it? >>
here is an article on the evo from pcworld
<< WHAT'S HOT: Compaq's low-budget Evo N1015v scrapes the bottom in terms of notebook pricing, but it doesn't scrimp on features. For a reasonable $899, the N1015v delivers a roomy-enough 13.3-inch screen and 20GB hard drive. Anyone who needs a good travel notebook or who likes to lounge on the patio away from an outlet would be thrilled with this configuration's near-4-hour battery life. Its performance, meanwhile, would be welcome at any price: Driven by its 1.2-GHz mobile Athlon XP 1400+ processor, this N1015v turned in a PC WorldBench 4 score of 90--putting it only about 10 percent behind the average 2-GHz Pentium 4-M notebook we've tested. >>
Nope, Carrying a balance means, in the creditors' terms that is, to pay interest over $3000 or more. In a hypotetical scenario, lets say you transferred $5000 In the first month you paid $2000 (so no interest is charged on this 2000 dollars) After that you need to charge minimal amounts and pay the same amount off at your billing cycle and keep the balance to $3000 So, you will pay 10.99% of this $3K as interest which roughly comes up to $350, which is not a bad deal for a brand name laptop. One caveat, I am sure they have very draconian measures against you slipping one payment, like jacking up your rate to 49% or so (you know they are allowed to jack up the interest rate to whatever they wish to as long as it is disclosed in the agreement) So, you need to send your payments using a verifiable method like fedex or ups, which means that you need to put another $10/mo to the expense, which makes the total cost of this deal something like $470, in my opinion. Still a good deal, if you can qualify for the intro rate and already have $5K to transfer into the card. Cheers
sguart
Senior Member
posted: Jun. 10, 2003 @ 4:52p
Doggus said:
<< lemonhead said:
<< this was brought up before and someone i think did the math....is it really WORTH it to keep that balance in there for 12 months? can someone do the math again???? please?!?!?!?! i really need a laptop, but not if it's gonna cost me an arm and a leg! >>
My math for dumbasses says 10.99% on $3000 is $329.70. 12 months of that B.S. is $3956.40. Anyway you stack your beans, if a finance company is giving something away, it's not a good deal for you, it is for them. But I guess if your the type to carry balances then maybe it is better than nothing. I have lived out of the back of my truck before I would carry a balance on my cards. >>
might as well take that penalty and get the labtop for $500
i just gave their 888 number a buzz. there are operators there. and by the sound of it, they're *swamped* by calls about this already. they're calling me back. so i still don't know about the balance / year restriction issue.
lemonhead: i know the interest rate is variable. but taking a 11% outlook, a 3000 balance incurs only $330. for a laptop that lists for $1000 and sells on the streets for $800 (supposedly). even if the interest DOUBLES to 22%, you'd still come in with $660 for the year.
Doggus: the A in APR stands for annual. you don't multiply the principal by the APR and then by 12. if you did, you'd get the interest for 12 YEARS.
can something be done with an AMEX cash rebate card and bonds to offset the interest rate on this card? for example, buy $5000 worth of ibonds (4.66% return), transfer it over. then, the interest kinda drops to something around 6.8% (10.99 - 4.66 - 1.5% cashback + 2% opportunity cost of a good savings bank). that drops the expenditure to $205.
if you don't count opportunity cost and just do a straight percentage yield, it's even lower. 10.99 - 4.66 - 1.5 = 4.83% = $145
edit: if anyone disagrees with my math, please PM me so i can change my posts and the title
weird
Member
posted: Jun. 10, 2003 @ 4:56p
Yankees said:
<< FULL STORY:
If you have excellent credit, a VISA card is now available that offers a free HP "Evo" laptop computer for making a minimum $5,000 balance transfer. The new "Universal Savings Bank Platinum VISA" also offers a competitive 10.99% variable interest rate on purchases as well as cash advances, and carries no annual fee. The only caveat to the offer is that you must maintain a balance of at least $3,000.00 for the first 12 months, or a $500.00 penalty fee will be charged to your account. Wisconsin-based USB is offering the "Compaq Evo N1015v" notebook PC which retails for $999 with a street price around $800. USB says it usually takes four to six weeks to receive the computer after the account is opened and the balance transferred. If you do not have $5,000 worth of balances to transfer, you may take the difference as a cash advance up to $2,000. For now USB is waiving cash advance fees and is extending the purchase APR of 10.99% to cash balances. For more information contact USB between 8:00 a.m. and 5:00 p.m. EST, Monday ?Friday at 1-888-826-5022 and mention “Evo?when you call.
I know this was posted by someone before, but there were no specifics in the last one. this has the 800 # and signup instructions.
i don't really understand the $3000/12 month thing though. do you have to have $3000 roll over from month to month, incuring the 10.99% APR? or, can you just charge $3000 worth of stuff to your card every month and then pay it off?
wouldn't carrying balance harm your "excellent" credit?
Sneezer
Senior Member
posted: Jun. 10, 2003 @ 4:57p
annfab said:
<< I too would like to know the answer to that. How much would it cost us to keep that $3000 for 12 months. If it is only $200-$300, I might consider doing this. This computer isn't a refurb ,is it? >>
See one of the previous posts. Roughly $330 over a 12 month period for $3000.00. $5000.00 comes to $549.50. This all assumes the interest rate remains the same, which it won't. Here is a link to the N1015 on the HP/Compaq website. Multiple configurations, although the $999 MSRP would indicate the one with a DVD-ROM, but not the CDRW. AMD XP1800 for that config, lowest is a 1600.
Seems like a decent deal. Keep in mind though that if you transfer the $5000.00, then move $2000.00 off, you will probably have a transaction fee from whatever card you are doing that transfer to, and you will need to maintain that $3000.00 balance or be charged their penalty fee. I am tempted to give it a shot, will save a small amount on my existing APR balances. Laptop seems OK, if a little heavy for my tastes. Still, can't beat free if I qualify, since I will be paying interest on the balance anyway, no matter what happens.
<< My math for dumbasses says 10.99% on $3000 is $329.70. 12 months of that B.S. is $3956.40. Anyway you stack your beans, if a finance company is giving something away, it's not a good deal for you, it is for them. But I guess if your the type to carry balances then maybe it is better than nothing. I have lived out of the back of my truck before I would carry a balance on my cards. >>
umm.. a dumbass question.. isn't this interest rate APR (ANNUAL percentage rate) ? but i agree with you when you say if a finance company is giving something away RUN... there must be some (read several) catchs somewhere..
Doggus
Member
posted: Jun. 10, 2003 @ 5:01p
Yankees said:
<< Doggus: the A in APR stands for annual. you don't multiply the principal by the APR and then by 12. if you did, you'd get the interest for 12 YEARS. >>
I guess that's why I have to have math for dumbasses and why I have had to live in the back of my truck.
<< I guess that's why I have to have math for dumbasses and why I have had to live in the back of my truck. >>
i didn't mean anything nasty by it Doggus. i just wanted to point it out to other people who might think it's a monthly interest too.
slycat
Thrifty Member
posted: Jun. 10, 2003 @ 5:06p
i'm stupid..but i have $3000-5000 sitting around doing nothing... so can someone say for sure if this is scammy or whammy???...
EvanGeliSt
Senior Member
posted: Jun. 10, 2003 @ 5:15p
Lol i don't think it's a scam - just that it really depends on whether you can afford the initial 5k and the monthly upkeep.
I personally think it's a decent deal. Not sure if i want to go through all the trouble though...
cklein
Member
posted: Jun. 10, 2003 @ 5:18p
I don't understand. In my understanding, if you are in debt, this is a great deal for you and you are qualified. If you have $5000 sitting at home, and don't have debt, you are not qualified. There's no way to work around.
<< i just gave their 888 number a buzz. there are operators there. and by the sound of it, they're *swamped* by calls about this already. they're calling me back. so i still don't know about the balance / year restriction issue.
lemonhead: i know the interest rate is variable. but taking a 11% outlook, a 3000 balance incurs only $330. for a laptop that lists for $1000 and sells on the streets for $800 (supposedly). even if the interest DOUBLES to 22%, you'd still come in with $660 for the year.
Doggus: the A in APR stands for annual. you don't multiply the principal by the APR and then by 12. if you did, you'd get the interest for 12 YEARS.
can something be done with an AMEX cash rebate card and bonds to offset the interest rate on this card? for example, buy $5000 worth of ibonds (4.66% return), transfer it over. then, the interest kinda drops to something around 6.8% (10.99 - 4.66 - 1.5% cashback + 2% opportunity cost of a good savings bank). that drops the expenditure to $205.
if you don't count opportunity cost and just do a straight percentage yield, it's even lower. 10.99 - 4.66 - 1.5 = 4.83% = $145
edit: if anyone disagrees with my math, please PM me so i can change my posts and the title >>
this makes sense provided you get to take out a cash advance, as opposed to tranferring a balance, if you are not thinking either, then i am WAY confused. but a cash advance may be exactly the ticket. i am sure there is someplace you can stick $3K for 12 months and get some sort of a decent return to make up a little difference on that balance! i'm almost in on this one!!!!
<< I don't understand. In my understanding, if you are in debt, this is a great deal for you and you are qualified. If you have $5000 sitting at home, and don't have debt, you are not qualified. There's no way to work around. >>
there is a way around it. read my post halfway up the page. get a cash back card (stockback, amex), use it to buy $5000 worth of iBonds (think of it as an extremely high yield CD). not only do you get the 4.66% from the bond and the 1.5% cash back (or 1% depending on the card) on $5000, it is actually sitting in your credit card as balance. you can then take that balance and transfer it to USB's CC. but you're right in that you have to be qualified. i'm guessing if you have a chunk of change sitting at home, your credit's probably good enough to qualify though.
Looks like you have to have a pre-approval code to get in on this offer. Considering that you have to keep the account open until you receive your laptop (say two to three months) at 10.9% on $3,000, you are going to have $100 in interest payments before you see your lappy. Then close the account, and another $500 on top of that. Comes out to $600 as I see it, if my math is right.
Keep the account open for a year and hope the introductory or variable rate doesn't shoot up.
DavidCL2
Senior Member
posted: Jun. 10, 2003 @ 5:22p
what is the exact specs of this laptop model? Is this the one without dvd or cd?
cklein
Member
posted: Jun. 10, 2003 @ 5:24p
I am a lazy person. I can never remember my payment date. I will skip this deal.
This is a smoking deal, no doubt about it. I called and applied as soon as I read about it. They did not ask for a confirmation code. It took a couple of tries to get through. I don't think it will last very long.
They pull equifax, and ask for household income only.
Note that the HP press release links to this configuration as posted at PC World. That means you get their low-end version (no DVD or CDRW.) Edit:this site describes the offer (credit goes to Sneezer), and suggests it's actually a better configuration, with DVD playback capabilities. Either way, great battery life, good screen size, and three year warranty--just what the doctor ordered for office-like tasks. Not bad at all if you don't need a software bundle (and who does on this forum, as Yankee notes? LOL.
For many, the best way to do this deal is to balance transfer to another card that already has a balance, or that you can easily draw on with purchase/convenience checks. I have sevearal lines of credit for real-estate investing that go as high as 5.75...I'm just BTing to one of those. I lose the DIFFERENCE between 5.75 and 11%, or 5.25% x $3,000 (plus a little extra for the first cycle when I can't pay off the $2K right away.) That's a mere $170-$200 net, paid off over a year, for a notebook worth several times that. (You can get similar returns by plowing the b-t into bonds or something, as discussed in the FW finance forum...)
No doubt you get hammered if you miss payments, but use automatic bill payments to solve that problem.
galawdawg: i don't have confirmation of this yet, but i believe you can call the 888 number and tell them code 'Evo'. the lady was too busy when i called, and she'll call back later to give me more details.
Sneezer
Senior Member
posted: Jun. 10, 2003 @ 5:32p
DavidCL2 said:
<< what is the exact specs of this laptop model? Is this the one without dvd or cd? >>
<< . Note that the HP press release links to this configuration as posted at PC World. That means you get their low-end version (no DVD or CDRW.) Still, great battery life, good screen size, and three year warranty--just what the doctor ordered for office-like tasks. Not bad at all if you don't need a software bundle. >>
like WE need a software bundle....this forum can almost always find software FREE or making money, like we will REALLY have a problem with that!
For those of you thinking of pawning this off on eBay there's absolutely no demand for it. So unless you can use it or have $5k you may as well transfer you'll probably want to pass.
I think if this had a dvd rom then I would jump on it but if it really just has the cd rom ...I don't no...
SNEEZERS link says it has a cd/dvd combo...so guys which one is it???? plain jane cd or with the dvd???????? someone smarter than me needs to figure this out
<< there is a way around it. read my post halfway up the page. get a cash back card (stockback, amex), use it to buy $5000 worth of iBonds (think of it as an extremely high yield CD). not only do you get the 4.66% from the bond and the 1.5% cash back (or 1% depending on the card) on $5000, it is actually sitting in your credit card as balance. you can then take that balance and transfer it to USB's CC. but you're right in that you have to be qualified. i'm guessing if you have a chunk of change sitting at home, your credit's probably good enough to qualify though. >>
Hey you just gave me an idea: I have a credit card from my credit union for which they charge no fees for a cash advance. I have been carrying a small balance simply by withdrawing cash and "paying off" the balance. I'm thinking what if I simply withdraw $5000 and then transfer this balance to USB's card. I can then invest the $5000 in another account that pays 3% straight up. Only problem I can think of is that I'm trying to refinance and this loan may affect my credit score. Any ideas?
Heres my math on it: Your going to have to pay interest on the 5000 for the 1st month regardless; so you take 10.99 / 12 = .9158333 so lets say .92 % per month becuase its 10.99 annual percentage rate (APR) so its .92 monthly percentage rate (MPR). Ok 5000 X .92% = $46, then you pay your 2000 and it leaves you with a balance of $3000. 3000 X .92% = 27.60. 27.60 X 11 months = 303.60 + 46 (from the 1st month) gives you a total of 349.60. Not too bad! Something else to consider if your just dishing out the money to get the deal and your not currently paying interest anyway then you have to figure how much money you losing by not investing the money. lets say you get 3% on your 3000 then over a 12 month period you would gain around 49 dollars in interest. You still only be out about 400 bucks, still not too bad! I think my math is correct. Hope this is clear enough for everyone to understand!
Good catch, Sneezer. That should be the right configuration, and it's better than the link from the HP website.
This website says you DO need an offer code. Interesting...I was not asked for one online, and was never told I needed one. I will be a bit annoyed if they pull my credit, then tell me I'm not elligible...but that wouldn't be a big deal.
another question arises.....what would the minimum monthly payment be for this card......and for those of us that are considering buying bonds, is that a reasonable amount per month???? my head hurts!!!!!
Can they send you a $999 tax (as in TO THE IRS) bill for this at the end of the year like the banks do on their "free money" ? What is it a 1099 or a whatever form when a bank goves you a gift ?
snowstar
Member
posted: Jun. 10, 2003 @ 6:08p
Wow, this deal might actually be good for me if they are willing to take $5000 off my car loan. I am paying a 4.9% rate on my car. So this might mean that the cost of the laptop to me will only be 10.99% - 4.9% over 1 year? can someone with better math skills than me figure out if this is good? Anyone know if they will take balance from car loan?
Drbeagle
Senior Member
posted: Jun. 10, 2003 @ 6:11p
Doggus said:
<< Yankees said:
<< Doggus: the A in APR stands for annual. you don't multiply the principal by the APR and then by 12. if you did, you'd get the interest for 12 YEARS. >>
I guess that's why I have to have math for dumbasses and why I have had to live in the back of my truck. >>
lol, I like your sense of humor.
RobP4P
New Member
posted: Jun. 10, 2003 @ 6:14p
how do we get an "invitation number"? Do we have to recieve an email? anyone have one I could use, i'm definitely in on this one. My sis needs a laptop for college
i haven't found anything that tells me that this can be "voided" but i have noticed this - i read on a statement i got from them a while back that USB will still be handling something (i forget what) so taht would lead me to believe that the original terms are still valid. i'll try and post what it says when i get home
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