WHAT WOULD YOU DO ?

[Anonymous]

would you charge $400 on a $2,500 limit card with 1% cash back with high interest and pay in 2 months installments ?

or

would you charge $400 on a $500 limit card with 1.5% cash back and pay in full before statement cuts and pay less on the other cards coming due ?

or

would you charge $400 on a $8,000 limit card that charges a low interest but no cash back and pay as you can ?

[Kenny]

If one could do this I'd do this:

would you charge $400 on a $500 limit card with 1.5% cash back and pay in full before statement cuts ?

[Anonymous]

I would charge $400 on a $500 limit card with 1.5% cash back and pay in full before statement cuts.

[IWOL]

Your first scenario makes no sense at all. You will earn $4 cash back and assuming your interest rate on that card is 20%, you will pay about $13 in interest over 2 months, so it will cost you $8.

Better off on a low interest card with no rewards. If your interest rate is say 12% it will cost you about $4 in interest.

[04Cobra]

I choose "B". Where's my cookie?

[Kenny]

Just curious -- what was the purpose of this little exercise? lol

[Anonymous]

---

@KennyRS wrote:
Just curious -- what was the purpose of this little exercise? lol

---

Just giving you guys a little warmup for the day 

[takeshi74]

We could go through the math exercise for you but if you're looking for an easy answer then generally speaking interest will kill rewards.