Apply for and pay taxes with Sapphire Preferred?

Anonymous · ‎02-08-2016

I owe like almost 7k in taxes state + fed. Don't ask. I'm so dumb I didn't fill my W4 correctly so the gov didn't take out enough taxes from my paycheck. I was thinking to make myself and my wife apply for 1 Chase Sapphire Preferred each and use it to pay for the taxes and then pay it off in full and close when I get the miles. I could reach the 4k spending goal on both of them almost immidately. We already have a chase bank account (opened just for their bonus too) and a pair of Freedoms so I'm pretty sure we will be approved easy.

Is there anything I might be forgetting here? Will it work?

Ghoshida · ‎02-08-2016

Remember that Chase is known to reject applications when you have got 5 or more new accounts in the last 2 years.

I have personally never paid taxes with a credit card. Others should chime in.

Anonymous · ‎02-08-2016

Risky business, I wouldn't do it and it's unlikely you will receive any reward points if you followed through.

Anonymous · ‎02-08-2016

@TastyWaves: What makes you say that? If OP isn't worried about his AAoA being affected, the inquiry, or doesn't have the 5/24 rule against him, I'd say it's a cool idea!

Anonymous · ‎02-08-2016

I only say it because some banks will not allow government debt payments or count them toward reward points. Im not given the option to pay my student loan payment with my CSP and it's from the dept. of education (government debt).

Furthermore OP is going off the assumption that he will get approved for a minimum of $7k which may be likely but not guaranteed.

Anonymous · ‎02-08-2016

That's what I was afraid of actually. That there is some kind of strange rule about paying for certain things. Things that you are supposed to pay with your bank account and have a fee attached to it when paying with credit card. I guess I'm gonna call and ask them. I received a 10k Freedom from Chase while my wife got a 7k Freedom so if we get something around that again we should be fine. Actually we don't even need that much. I'm gonna spread the payoff anyway so they just need around 4-5k each. I think I'm not over the 5/24 rule although I will double check that.

Anonymous · ‎02-08-2016

You are doing the right thing by calling and asking about the policy, better to know what to expect ahead of time.

Excellent question btw!

Anonymous · ‎02-08-2016

@Anonymous wrote:
I guess I'm gonna call and ask them.

Please let me know if taxes count. I, too, owe some taxes and was hoping to use the payment to meet the bonus requirement.

Anonymous · ‎02-08-2016

What do you value UR points at? It's going to cost you 1.87% in fees to process the payment so really the points for general spend are gone.. or close to it.

You'd be opening just for the churn of the signup bonuses.. which is fine I guess.. but now you have two AF cards. Are you going to cancel them (likely hurt your future prospects with chase) or do you have spending pattern to keep one or both of them? Have other UR cards for transfer combo?

Not a terrible idea I guess but not a slam dunk either.

Anonymous · ‎02-09-2016

@Anonymous wrote:
What do you value UR points at? It's going to cost you 1.87% in fees to process the payment so really the points for general spend are gone.. or close to it.

You'd be opening just for the churn of the signup bonuses.. which is fine I guess.. but now you have two AF cards. Are you going to cancel them (likely hurt your future prospects with chase) or do you have spending pattern to keep one or both of them? Have other UR cards for transfer combo?

Not a terrible idea I guess but not a slam dunk either.

I don't care about the general spend. I've never seen a travel card that has a good enough general spend reward program to beat normal cashback cards anyway. But the signup bonus looks really nice. Specially if you double it with my wife. I knew there was gonna be a fee. I didn't know its going to be exactly 1.87% but thats not bad. I was totally thinking of canceling them after that. I know its not nice but screw them. They own the world. They gave me 500 to open checking with savings, 200 for each freedom so they should get used to it by now lol. I dont know what UR cards are but I dont own any travel cards.

@Anonymous wrote:
Please let me know if taxes count. I, too, owe some taxes and was hoping to use the payment to meet the bonus requirement.

I'm gonna let you guys know what they said.