Chase Manhattan Bank recently introduced a program to encourage cardholders to charge on major rebate programs like the GM MasterCard, GE MasterCard, Discover, Shell MasterCard and to shift, via a special transfer check, the monthly balance to a Chase line of credit with a lower interest rate (11%-12%). The novel strategy permits cardholders to rack up points but avoid the higher interest rates charged on most rebate programs.
If you're willing to juggle two accounts, the Chase "Rewards Consolidator" program can save you 4%-6% per year on interest charges. Unbeknownst to most cardholders is the fact that you can double the savings by transferring monthly balances to Wachovia's "First Year Prime" VISA-MasterCard. Wachovia (800-842-3262) charges prime +0% for the first year, prime +3.9% afterwards and they offer unlimited free transfer checks with no restrictions or hidden fees.
The new two card strategy: one for points and one for balances. Do all the charging on a GM card or an airlines card and then transfer the outstanding balance each month to Wachovia's super low rate VISA-MasterCard. You not only get to have your cake and eat it . . . you'll get the icing too.
