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By Jeff Ostrowski, Palm Beach Post Staff Writer
Monday, April 12, 2004

There's no such thing as a free laptop, at least not when the gift comes in the form of a credit card reward.

As credit card blandishments grow ever more extravagant, Universal Savings Bank of Milwaukee is marketing the Upfront Rewards Visa card, which promises consumers a "free" Dell Notebook or IBM ThinkPad worth $800.

But the freebie comes with an asterisk. To receive the laptop, you must transfer $5,000 to the card, then carry a balance of $3,500 for 18 months. At a rate of 9.99 percent, you'll spend $524 in interest to get the machine.

A Universal spokeswoman acknowledged that the deal comes with costs.

But, she argued, if you're going to carry a balance anyway, why not do so on a card that rewards you for paying interest?

At any rate, Universal's enticement is the most eye-catching in an industry that relies increasingly on points, frequent flier miles and rebates to win customers.

A customer receives the laptop soon after signing up for the card.

But a final caveat: If your balance dips below $3,500, Universal will charge you $600.

jeff_ostrowski@pbpost.com

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