topic Re: Using sign-up bonus on credit cards to pay off other debt? in Credit Cards

Using sign-up bonus on credit cards to pay off other debt?

Anonymous — Thu, 12 Mar 2015 06:08:29 GMT

Im not sure if this is the correct section to post this in but I am wondering if this is a good idea. My student loans through navient charge about $15 to make a loan payment using a credit card. I just got approved for an amex bce with a sign up bonus of $100 on my first $1000 in purchases in the first three months. So, if I spend the $15 to make a credit card payment to navient, make $1000 dollar payment off my amex to get the sign up bonus of $100, and then pay my balance in full before amex charges me finance charges im still saving $85 right?

Has anyone done anything like this? Are there any hidden dangers in doing this if I pay my balance in full?

Re: Using sign-up bonus on credit cards to pay off other debt?

Anonymous — Thu, 12 Mar 2015 06:10:32 GMT

@Anonymous wrote:
Im not sure if this is the correct section to post this in but I am wondering if this is a good idea. My student loans through navient charge about $15 to make a loan payment using a credit card. I just got approved for an amex bce with a sign up bonus of $100 on my first $1000 in purchases in the first three months. So, if I spend the $15 to make a credit card payment to navient, make $1000 dollar payment off my amex to get the sign up bonus of $100, and then pay my balance in full before amex charges me finance charges im still saving $85 right?

Has anyone done anything like this? Are there any hidden dangers in doing this if I pay my balance in full?

Not in the least. Heck that's only approximately 1.5% convenience charge. So you get the $100 and $10 in CB.

If you made your payment $1,500 you could break even on the charge.

Re: Using sign-up bonus on credit cards to pay off other debt?

Imperfectfuture — Thu, 12 Mar 2015 06:15:43 GMT

This is fine. The BCE (which I have) also has 0% for 15 months, and they don't care if you carry a balance (though I would pay down to 300, then pay off slowly). I've been carrying a balance on my BCE since I got it, though less than 9% at this time. You can make purchases for the full 100 off, or do it the way you describe. You will be fine.

Re: Using sign-up bonus on credit cards to pay off other debt?

Anonymous — Thu, 12 Mar 2015 06:21:57 GMT

Awsome! And I totally forgot about the 15 months zero apr. This will make it much easier to pay off in two payments instead of one big one! And I think i'll also go for the $1500 loan payment so i break even, use the zero apr perk to do it in 2 or 3 payments. Saving $100 bucks on my student loan makes me very happy!!

Re: Using sign-up bonus on credit cards to pay off other debt?

takeshi74 — Thu, 12 Mar 2015 12:25:52 GMT

You can do whatever you want with the sign up bonus. Whether the idea is "good" or not is for your to determine. Good is always highly subjective and you need to consider your specific situation, preferences, etc. It would probably be easier to use the bonus as a statement credit and reallocate funds though.