08-18-2013 06:30 AM - edited 08-18-2013 06:32 AM
08-18-2013 06:42 AM
I unfortunately just found out that I was only granted $10,500 for my first and second semesters this school year for law school (full year=$20,500). Unfortunately in order to graduate with no summer school, I need to take out an additional $3,500/semester this year.
Now, instead of taking out another loan at a greater interest rate (>6.8%), I thought of a better plan and just want to verify that it's probably the best idea for this.
I recently got a BCP in July, which has no interest for 15 months. I was thinking that I could buy $3,500 of reloads at CVS, put them into my bluebird account, and pay the school. I could pay directly with my credit card, but it would be an additional $75, instead of $28 in reload fees. If you are unfamiliar with manufactured spending, don't worry, not really my question, I am very comfortable with it and have been paying rent and bills with it for a while now.
I will be paying this off within 6 months by paying $600/month and paying whatever else I put on this card monthly in addition (aka groceries to get my 6%). Then, next semester I will do the same thing until the interest goes up in July, 2014. Somewhere in the middle, my parents are going to help me out, they just owe a lot of money upfront with my brothers tuition.
My main question is carrying this balance. I know it's not ideal, my score is going to slide, but I've never done this before and I guess it's why I need to make sure it's the best option. I am not planning on apping, grabbing a mortgage or car loan anytime soon, so I see this as ideal and a one time thing. I just worried about AMEX, but it's the only card I have with no interest, as I've had my Freedom for more than a year.
Thanks for any and all advice!
A few questions! If the only issue is $75 vs $28, I probably wouldn't risk it, just in case Amex objects.
Also, will you spend $6K (or most of it) on groceries? If not, since the BCP gives no special discount at CVS, I would buy Visa/MC gift cards at a supermarket and load them on to Bluebird at a Walmart (providing you are near one!) Athough these cost a little more, you would get 6% rather than 1%
For $47 though, probably not worth the risk IMO.
08-18-2013 06:45 AM - edited 08-18-2013 06:55 AM
08-18-2013 07:19 AM
08-18-2013 07:34 AM
When Pins were first mandated, there seemed to be teething issues, and some were not able to be loaded at Walmart. Now most of these issues are resolved. However, see the thread
http://www.flyertalk.com/forum/manufactured-spending/1455542-pin-available-now-visa-mc-prepaid-debit... You can read all 147 pages! Or just look at the Wikipost at the top, where they name one MC that seems to always give problems (US Bank Celebrate) so avoid that. Since you never know when glitches occur, I would buy one card first and try it out ($500 if you are confident you can use that for purchases if it doesn't load at Walmart, or a smaller amount if you are not.)
The good thing is that this isn't obviously bad manufactured spend, you are just trying to get rewards for a bill that you have to pay. (Amex doesn't need to know that you could pay the bill directly, in many cases you can't!)
08-18-2013 07:50 AM
08-18-2013 08:54 AM
08-18-2013 09:52 AM
08-18-2013 11:13 AM
For your parents: with more effort you can find cards which aren't capped like the BCP, but are capped in time (1 year, 6 months, 90 days). With a thick credit file, usually worth getting and using for whatever time period they allow, and create a lot of spend!