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Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Best way to make a "cash only" purchase with a credit card?


Autumnslight wrote:

Honestly, it's more about being able to float the balance at 0% for a couple of months. The rewards are just a bonus.


if it's for a "couple" months the intrests are very minimal

 

Even at 29% interest rate  on $1,000 your paying $24 intrest a month (2.42% monthly intrest)

 

That's assuming your credit card got a default rate due to a missed payment history. Most people should be paying less than $20 in intrest a month, especially if you qualified for a rewards card you should be alright. of course points are huge bonuses. but if you want to charge it on your card, get a serve card, transfer the funds to serve, and take it out yourself and then spend the $1,000 in cash. This way the amount is all on your credit card, I think serve is waiving all the credit card transfer costs til march.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Frequent Contributor
SwampSystems
Posts: 358
Registered: ‎06-25-2012

Re: Best way to make a "cash only" purchase with a credit card?


andre181 wrote:

If you have a Discover card and the seller is willing to accept paypal, you could use Discover Money Messenger. Its treated as a normal purchase and earns rewards like normal and has no fees for either you or the person you're sending money too.

 

Only thing is there is a $400/day and $1000/month cap, so you'd have to do it over 3 days, and if its over $1000 do some this month and some next month.


This is only true if you are sending money to friends or family. There are fees if it is for a business transaction or purchase.

Frequent Contributor
TheConductor
Posts: 491
Registered: ‎07-24-2012

Re: Best way to make a "cash only" purchase with a credit card?


Autumnslight wrote:

Honestly, it's more about being able to float the balance at 0% for a couple of months. The rewards are just a bonus.


So basically then, you want to spend $1000 of cash you don't have right now?

 

That's your choice, but I just want to point out that spending behavior like this is the reason many myFICO forumites are here rebuilding their credit. Be careful out there!

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12)
Current: EQ 686 (myFICO 7/14/14), EX 694 (Prosper 7/17/14) , TU 691 (WalMart 7/11/14) Goal: 700+ x3
My Wallet: Amex BCP $30k, Chase CSP VS $12.2k, Amex Zync NPSL (> 10k), C1 Venture VS $5k, Amex SPG $4.5k, Barclaycard Apple V $2k, Walmart (Store) $1.6k, Chase Freedom V $1100, BoA Cash Rewards V $500, Best Buy Rewards MC $500
My Loans: Prosper $25k/36mo
Frequent Contributor
Autumnslight
Posts: 311
Registered: ‎07-08-2012

Re: Best way to make a "cash only" purchase with a credit card?

I haven't even entirely decided to make the purchase, but I could use cash if I wanted to. It's more that I enjoy math and problem solving, and I like to see if I can find a way to maximize things to my financial benefit, even just a little. :smileyhappy: If it came down to HAVING to use a cash advance to make the purchase, I just wouldn't make the purchase. The fee is 3%, then the cash advance APR is, on average, about 25%, starting immediately. That's crazy.

 

But, if I can make the purchase, float it at 0% for a couple of months (through the holidays), AND get rewards, then that makes it more attractive. Ultimately, I'm not going to do this using credit unless my net cost is less than the straight cash cost, so even a BT check won't be my solution here. Definitely a great idea for an emergency/necessary purchase though!

Scores:
07/29/12: EX FICO (Amex) 684 | EQ MyFICO 631 | TU Walmart 695
Current: EX FICO (MyFICO) 733 | EQ (MyFICO) 683 | TU (Walmart) 745

First Goal: 700+ across the board - Got it on EX & TU!!!

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