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Time for another credit card?
Posted by: wurm
Date: April 25, 2021 02:39PM
Big purchase coming up (new roof), and while we could pay for it out of savings, I'm considering applying for a new cash back/zero interest for a year credit card, just to avoid the savings hit. We did that for a new floor a couple of years ago and it worked out well.

Credit is excellent (800+) and I'm not concerned about that changing. I am a little concerned that I have a couple of unused or seldom used cards with open credit and that may prevent me from finding the best deal if it's a new card with the same company for which I already have a card. I suppose I could put it on an existing card, but a 30 day float isn't as enticing as 18 months.

Anything else I'm not thinking of that could burn me?



Edited 1 time(s). Last edit at 04/25/2021 03:54PM by wurm.
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Re: Tine for another credit card?
Posted by: datbeme
Date: April 25, 2021 02:57PM
I know you're interested in the float, but keep in mind that the roofer may have 2-3% built into the price to account for cc processing. They may offer to discount that if you pay by cash or check.
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Re: Tine for another credit card?
Posted by: jdc
Date: April 25, 2021 03:02PM
Its kind of a rob peter to pay paul thing ... unless the card you get offers additional perks?

Eventually, the amount has to get paid... right? Unless you were planning on carrying a balance on the card after its 0 interest period ends...

If the plan was to make $500 (just an example) a month payments on the card for the next year to pay it off, you could just as easily put that same $500 back into savings.

I guess the idea of not having whatever the cost of the roof is not in savings as a potential "safety harness" break...





Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Tine for another credit card?
Posted by: Ombligo
Date: April 25, 2021 03:20PM
If the cards in question are in your name, you can take the new card out in your spouses name.



“No persons are more frequently wrong, than those who will not admit they are wrong.” -- François de La Rochefoucauld

"Those who cannot accept the past are condemned to revise it." -- Geo. Mathias
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Re: Tine for another credit card?
Posted by: wurm
Date: April 25, 2021 03:57PM
Quote
datbeme
I know you're interested in the float, but keep in mind that the roofer may have 2-3% built into the price to account for cc processing. They may offer to discount that if you pay by cash or check.

True enough. This particular quote said that if payment were by credit card, to add 2.9% to the price. On the other hand, he was the only one who didn't want payment until the job was completed. I was kind of surprised by that.
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Re: Tine for another credit card?
Posted by: Gareth
Date: April 25, 2021 03:58PM
Quote
datbeme
I know you're interested in the float, but keep in mind that the roofer may have 2-3% built into the price to account for cc processing. They may offer to discount that if you pay by cash or check.

Sometimes, you can take you credit card promo "balance transfer" out as "cash" to yourself, and then just pay the roofer with a check. No need to actually get the credit card involved with the payments to the roofer.

Quote
jdc
If the plan was to make $500 (just an example) a month payments on the card for the next year to pay it off, you could just as easily put that same $500 back into savings.

It could depend on where the "savings" are held. If they are in cash (i.e. a savings account), then yes, it's effectively the same. If they're in a mutual fund or stocks, then there could be tax implications for selling some of it, in which case using a 0% credit card could be an attractive option.
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Re: Tine for another credit card?
Posted by: wurm
Date: April 25, 2021 04:03PM
Fair point, jdc. It would really only make sense if there were perks with the cards; cash back, etc. In fact, that's the main reason we did it that way for the floor. We had the money, but made token payments for the 18 months interest-free, then paid the balance when due. Didn't cost us a dime in interest and we got a check for several hundred at the end of the term.

And yes, part of the reasoning is not to take the big lump out of savings all at once.

Ombligo, my wife has enough cards of her own already. Would rather not go that route.
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Re: Tine for another credit card?
Posted by: jdc
Date: April 25, 2021 04:52PM
Quote
wurm
We had the money, but made token payments for the 18 months interest-free, then paid the balance when due. Didn't cost us a dime in interest and we got a check for several hundred at the end of the term.

If you can get and offer like it again... win win. =)





Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Time for another credit card?
Posted by: wurm
Date: April 25, 2021 05:28PM
Yeah...if. smiling smiley That's what I'm searching.



Edited 1 time(s). Last edit at 04/25/2021 05:29PM by wurm.
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Re: Time for another credit card?
Posted by: vicrock
Date: April 26, 2021 07:20AM
2.9% "discount" is more than you would probably make on your savings. I'd go that way and be very precise about making "payments" every month to your savings account.
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Re: Time for another credit card?
Posted by: Paul F.
Date: April 26, 2021 12:00PM
I'd be considering a HELOC rather than a credit card if the purpose is to "spread the load" down the road a bit. Probably cheaper than any credit card fees.



Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.

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Eureka, CA
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Re: Time for another credit card?
Posted by: wurm
Date: April 26, 2021 12:39PM
Quote
Paul F.
I'd be considering a HELOC rather than a credit card if the purpose is to "spread the load" down the road a bit. Probably cheaper than any credit card fees.

Well, the most I'd want to stretch it out would be the 18 month of interest-free on a credit card.

I also asked my mortgage guy about the possibility of a cash-out refi, but only if I can get a low enough rate to match my existing P&I payment without extending the duration more than I have left.
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