Daily Press from Newport News, Virginia • Page 67

Dailnjfttss PERSONAL FINANCE Sunday, May 29, 1994 31 More credit cards offer cash bacl Competitors take Discovers lead Stephen Hartwell, director, sold 800 shares of beneficial interest at $2.00 each on May 5 and now directly holds 59,029 shares beneficial interest. The GE Rewards Card operates more like the Discover Card, with a graduated reward system. But it offers larger rebates for big spenders than Discover. You get the check annually in July. This program replaces the old GE reward program, whose main drawback was that its rebate checks could be used only at participating merchants; the new checks can be used anywhere.

It did, however, offer bigger rewards GE's new rebates are 30 percent less. Why the cut in benefits? Not all the old rewards checks for merchandise were used, so they cost the company nothing. But because more cardholders are expected to participate in the new cash program, which will raise costs, the rebates were lowered. outs average closer to $10 a year. The new card that offers the possibility of the most cash is the Chase CashBuilder Visa.

It offers a 1 percent rebate on purchases and cash advances, plus, if you run a balance, 10 percent of your monthly finance charge (now running at 15.9 percent annually). Keep in mind that Chase doesn't deduct that 10 percent from what you owe; that might cut into their own cash flow. They just credit that amount to your rewards account and pay you later. So what's the catch? Well, unless you rack up $500 in credits, you have to wait three years for your money. If you earn $60 a year for three years, you'll get a $180 check then.

The only way to rack up a quick $500 is to charge $50,000. cash formula to compete. Robert McKinley, publisher of the RAM CardTrak newsletter that follows the credit card industry, said companies are offering money to hold onto their customers and to attract new balances. "Gasoline and grocery discounts aren't as attractive," McKinley said. But before you start figuring out how you can charge enough for a down payment on a house, the experts say, do the math.

There is no pot of gold at the end of the plastic rainbow, and it could take a long time to collect what little there is. The Discover people, reticent as ever, would only say that since 1986 they have given out $440 million and they have 29 million card accounts. That averages out to about $15 each since 1986, and industry sources say the actual pay ever, cash is the new wave in credit card gimmicks. Both Chase Manhattan Bank and GE Credit have unveiled cards in the past two weeks that offer cash bonuses larger than what Discover has been giving. Why cash? 'Why not VCR remotes or something equally useful? "We listened to our customers in focus groups, and they told us they wanted cash," said Daniel DeMeo, marketing manager for GE Capital consumer finance services.

"It is a very competitive market out there, and our customers wanted cash," said John Ward III, executive vice president for credit card operations at Chase Manhattan Bank. Discover Card officials won't comment on the competition or whether they plan to change their The Associated Press In the overpopulated world of credit cards, where everyone is hawking mirror images of the same basic product, card issuers have been doing whatever is necessary get noticed. They offer free airline miles, hotel rooms, auto insurance on car rentals, car rebates, breakage and loss insurance on purchases, extended warranties, gasoline discounts and whatever bells and whistles they can think of. But for most of the last eight years, the Discover Card was alone offering cash rebates. Now, how Can't pay off credit card? Lower the rate Interest rates aren't the only consideration, of course.

The annual card fee is a factor to consider, as is the length of the "grace" period the period during which you can avoid finance charges by paying off your account balance. Among the lowest-rate cards listed by CardTrak are those issued by the following banks. Each card provides a 25-day grace period on purchases: Wachovia Bank (6.75 percent, $18 annual fee, 800-842-3262); Federal Savings Bank (7.92 percent, $33 fee, 800-374-5600); Arkansas Federal (8.00 percent, $35 fee, 800-477-3348); Central Carolina Bank (8.75 percent, $29 fee BfftOBSl 11(0) SflSo WfV $1 ifr Jaime Iglesias, a member of a committee or an advisory board, exercised an option for 4,000 shares of common at $31.63 each on April 20 and now directly holds 1 7,430 common. 'James D. Barr, vice president, exer cised an option for 2,800 shares of common at $22.38 each on April 26 and sold them at $44.63 each the same day.

He now directly and indirectly holds 6,967 common. Patrick D. Gibiin, officer and director, an option for 1 1 ,609 shares of common stock between $24.38 and $28.63 each between April 26 and April 28, and sold 7,507 shares at $45.00 each during that time. He now directly and indirectly holds 84,252 common. Richard Granville Tilghman, chairman, exercised an option for 7,531 shares of common at $22.38 each on 26 and sold them at $44.38 each on April 26 and now directly and indirectly holds 61 ,749 common.

mm ESS William H. Pruitt, vice president, exercised an option for 3,375 shares 'of common at $10.50 each on April 22 and now directly and indirectly 'holds 19,284 common. Carroll Salne, chairman, exercised an option for 5,000 shares of common at $10.50 each between April 15 and il9 and sold them at $30.00 each. He now directly and indirectly holds 96,651 common. Georae L.

Buntlna, director, pur chased 200 shares of class at $19.88 each on May 3 and rtiow directly holds 1 ,000 class common. James L. Bowman, director, purchased 5,000 shares of common at $16.00 each between April 15 and April 28 and sold 2,690 shares at $16.00 each during that time. He now directly holds 234,01 2 common. Benjamin F.

Edwards, director, purchased 300 shares of common at $25.56 each on April 21 and now directly holds 20,300 common. Norwood H. Davis, director, pur- chased 10,000 shares of common at $12.38 each on May 5 and now direct- 1y holds 1 0,000 common. 7 E. Cuneo, director, purchased 2,000 shares of common between $9.38 and $9.88 each from April 25 to April 28 and now directly holds 14,150 common.

James A. Flick, director, purchased shares of common at $18.13 each on May 13 and now directly Jiolds 3,000 common. umAe nmusila offinpr and riirfiO tor, exercised an option for 83,849 lnares or uunmiun ucihccm and $46.00 each on May 3,1994. To rover expenses of the transaction Dowdle turned in 67,489 or tnem ror $63.00 each on May 3,1994 and now tiirectly and indirectly holds 121,261 jcommon. Madlnan.

officer and direc- tor, exercised an option for 111,844 shares of common between $38.63 and $46.00 each on May 9. To cover I. Jumed in 93,651 of them at an unre- ly and indirectly holds 269,156 com- 'mm. is cuAmvesnwi Na. railroad Wins honors The Associated Press WASHINGTON Norfolk Southern, Illinois Cen-Jral and Bessemer and Lake Erie railroads won the nation top non-hrs for employee safety, ft The E.H.

Harriman Awards were presented to 12 railroads last week, with winners chosen based on Federal Railroad Administration jrecords of employee deaths, injuries tnd occupational illnesses. Norfolk Southern was the top J)rize winner in the large railroad category, with second place going jo CSX and third spot to Amtrak. Among medium size railways first place went to Illinois Central, followed by Chicago and North jWestern and Northeast Illinois Railroad Corp. The winner for small railroads was the Bessemer and Lake Erie Railroad Company.Second was the Kansas City Southern Railway, followed by the Wheeling Lake Erie Railway awards are administered by the Mary W. Harriman to in waived for the first year, 800-577-1680); and Crestar Bank (8.90 percent, $29 fee, 800-368-7700).

You can buy a single copy of the CardTrak newsletter by sending $5 and your address to CardTrak, Box 1700, Frederick, 21702. CHILD OR TAX DEDUCTION? A baby is not a dependent until he is born, says a tax court. Andrea and Michael Cassman tried to amend their 1991 tax return after the birth of their son, Jonathan, in July 1992, according to Tax Notes magazine. The Cass-mans argued that the child was their dependent after his concep Apple, tfie Apple logo and Macitwri AppleCO a i PFivniiM 11 1 asVM. 1 1 processor SPEED AND FLEXIBILITY! 60 MHz Pentium Processor 8MB RAM 420 MB HD Dual-Speed CD-ROM Speakera 14.4 FaxModem Mouse Windows 3.

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IT Tf afQQ 11 i 111177 --9t "JB JM 1 JT The easy availability of credit cards and the convenience of using them for shopping lead many a consumer down a costly path. The average consumer has credit card balances of about $2,500. That much debt would cost $420 a year in interest at the 16.77 percent average interest rate charged on credit cards this month, according to CardTrak, a monthly newsletter on credit cards. Most consumers would do well to leave their credit cards hidden in a drawer at home until they've paid off the outstanding balances. If you can't or won't pay off the SO MHz 486DX2 4 MB RAM 210 MB HD 1.44 MB FD 800 VGA Video Card Mouse Keyboard Win.

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1 driver. 2-year warranty. DECwriter 65 317133 V. I '9mt' tion in 1991 and that they were entitled to a deduction for him then. The Court of Federal Claims upheld the denial of the couple's claim by the Internal Revenue Service.

To do otherwise, the court ruled, would allow tax deductions for pregnancies that never resulted in live births. Stock writes for the Philadelphia Inquirer. ft Oiwlra are regiMerrd trademarks of Apple Computer, Inc. trademark of Apple Computer. Inc.

vNewMedia Your Choice! American JourneyCD the Klondike Gold to the Atomic 291963 Over5000 Computer Products! 30-Day Return PolicyT Dedicated Corporate Sales and Government Teams! Training at Your Place or Ours! ESQ Uses Ml Mil IIU fcffS. 6 486SX 25 MHz Notebook Craig Stock balance, a second strategy is to shop for a credit card that charges lower interest than your current cards. The savings can be substantial. On a $2,500 balance, a card holder can save $150 a year, or $12.50 a month, by reducing the interest rate by six percentage points. CardTrak's May issue lists a dozen banks that offer credit cards with annual interest rates below 10 percent.

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