topic Re: Using cash rewards. in Credit Cards

Using cash rewards.

Anonymous — Sun, 24 Apr 2016 15:25:56 GMT

So here's our senerio whe have. We just are getting into cash rewards.
We went to art van ( furniture store ) we are going to purchase a new couch. We have a QS no apr on purchases until February of next year. 1.5 cash back. Plus 100 dollar statement credit after 500 spent. And the DC 2% no interest for 18mo.
So we're talking to the sales guy. He gave us 2 options. 20% off or 48mo interest financing ( we have an artvan signature card already)
So my thought would be to take the 20% off the sale price of 2799.99 and use one of the cards for the purchase that way I'm getting the 20% off and a no interest financing purchase. I'm guessing in this case the QS would be the better or the two because of the 100$ statement credit?
We still plan on paying it in full. We're just trying to maximize how much we can actually save.

Re: Using cash rewards.

Anonymous — Sun, 24 Apr 2016 15:36:18 GMT

I'd use the Double Cash with it's 2% cash back and 18 month 0% period, unless you calculate that the QS statement credit would net you a higher yield once you crunch the numbers.

Also, you may decide that the flexibility of having the 18 month window is more valuable to you than having only 9 months to pay it off, even with the $100 statement credit. Sometimes having the flexibility can inherently be more valuable. Good luck

Re: Using cash rewards.

Samac — Sun, 24 Apr 2016 16:17:01 GMT

I'm a little confused... The 20% off would require you to use the store card, no?

Re: Using cash rewards.

Anonymous — Sun, 24 Apr 2016 16:43:25 GMT

No. The 20% off is if I use other means to purchase. The 48mo is if I use the store card.

Re: Using cash rewards.

Anonymous — Sun, 24 Apr 2016 16:44:45 GMT

So I would have to pay 2799.99 if I used the store card. 0% interest.

Re: Using cash rewards.

Samac — Sun, 24 Apr 2016 17:13:48 GMT

Ah, sorry I misread it!
I agree with my friend, the QS would give you more return but with less time.
I would use QS for regular spend, $500 in 3 months is t a hard threshold to reach.
I value the longer 0% APR period for the big furniture purchase. Just my 2 cents.

Re: Using cash rewards.

NRB525 — Sun, 24 Apr 2016 17:22:39 GMT

@Anonymous wrote:
No. The 20% off is if I use other means to purchase. The 48mo is if I use the store card.

$560 reduction on the sale price for using your own card is a lot of clams.

Since you have 0% terms on both cards, either works, even if you overrun the 0% APR period and end up paying some interest on the card.

The delta on the rewards is not huge:

1.5% = $33 immediately, no games with "you have to pay it off".

2.0% = $45 (after you've paid it, which might be a while?)

I would use the QS for the intial purchase. Get your $100 bonus out of the way, get the $33 in rewards listed on the account, take advantage of the 0% APR for whatever, 9 months, and save the $560 right off the bat.

Then, if you are stretching the payment out, after the QS 0% expires, you will likely have a 0% APR offer from Double Cash for a 3% fee, you could BT the remainder over to DC for an additional 12 months low APR.

Re: Using cash rewards.

UncleB — Sun, 24 Apr 2016 17:22:47 GMT

This is completely subjective, but if it were me I would do just as the others have suggested and use the Citi DC for your purchase.

I'm thinking the $500 spend requirement to get the bonus on the QS Visa is "low hanging fruit" that will be easy to pick up somewhere else (since you have three months).

If my assumption is incorrect and there's a chance you'll not spend $500 on your QS Visa, then in that case I would use it for this purchase, since $100 is more than you'll earn using the DC.

Having the extra time to pay off the purchase is secondary in this case, but could be useful nonetheless.

Just my 2¢.

Re: Using cash rewards.

Septrosh — Sun, 24 Apr 2016 17:36:32 GMT

I'd say take the 20% off option.

Spending $500 on that card shouldn't be much of an issue in 3mo - grocieries, gas, life expenses, etc.

Re: Using cash rewards.

Anonymous — Sun, 24 Apr 2016 17:42:57 GMT

How is CITI with bring that card to around 40-45%. It's only a 5500$ card. The financing it's a big deal. I had planned on paying it off next month anyways.
The 500$ on the QS is easy to make. We planned on paying our premiums in full. We do it every year to save 10% on insurance if paid in full then we just turn around and send in the payment once it posts to the card. Our insurance on our cars is about 2600 yr. so 10% is a decent savings lol.

Re: Using cash rewards.

Anonymous — Sun, 24 Apr 2016 17:46:27 GMT

I'm just not a huge person on financing stuff. I feel that's what gets some people in trouble. The 0% is nice for x amount of time. But normally it gets pushed back, bills rack up and then your going OShít I gotta get this paid off!
I'll finance a car, house, stuff like that but not something that's going to back charge me interest on a purchase if I don't pay it off. Lol.

Re: Using cash rewards.

Anonymous — Sun, 24 Apr 2016 17:47:14 GMT

@Anonymous wrote:
How is CITI with bring that card to around 40-45%. It's only a 5500$ card. The financing it's a big deal. I had planned on paying it off next month anyways.
The 500$ on the QS is easy to make. We planned on paying our premiums in full. We do it every year to save 10% on insurance if paid in full then we just turn around and send in the payment once it posts to the card. Our insurance on our cars is about 2600 yr. so 10% is a decent savings lol.

Split the charge between the two to optimize utilization.

Re: Using cash rewards.

UncleB — Sun, 24 Apr 2016 17:47:46 GMT

@Anonymous wrote:
How is CITI with bring that card to around 40-45%. It's only a 5500$ card. The financing it's a big deal. I had planned on paying it off next month anyways.
The 500$ on the QS is easy to make. We planned on paying our premiums in full. We do it every year to save 10% on insurance if paid in full then we just turn around and send in the payment once it posts to the card. Our insurance on our cars is about 2600 yr. so 10% is a decent savings lol.

Assuming you meant to say that the financing isn't a big deal (a typo above?) then I would say you have answered your own question.

Re: Using cash rewards.

Anonymous — Sun, 24 Apr 2016 17:58:01 GMT

Yes isn't lol.

Re: Using cash rewards.

Anonymous — Mon, 25 Apr 2016 04:50:16 GMT

really depends...

I think there are only 2.5 reasons why you'd use QS over DC:

1) You don't think you can hit the $500 spending limit on QS without this? I would guess most people would easily hit $500 of spending in 3 months... I think if you believe that you won't be able to reach it without help, then yea, use QS. However, I belive you should be able to get to your $500 without the additional help

2) DC you get 1% when you buy and 1% when you pay back. So really, you'll only be getting 1% today and you'll have to wait for get your extra 1% for however long you take to pay it off (up to 18mo possibly). If you need that extra 0.5% today, use QS. Otherwise, if you can wait to get the cash, 2% is still more cash in your pocket... just later...

2.5) Not sure what your limit on DC is, but overall, it's a better CB card than QS... Tying up nearly $3k might put your DC card out of commission for a while, so you'll be "stuck" using your QS for everyday purchases and earning less cash on that, which might add up. If you have a decent limit though, you could spare the cap hit and still have room to use it daily

Overall... I think 2% if a better deal because it's... well... more than 1.5%... but if you have either of the above special circumstances, then use QS...

Re: Using cash rewards.

Anonymous — Mon, 25 Apr 2016 07:07:48 GMT

@Anonymous wrote:
@Anonymous wrote:
How is CITI with bring that card to around 40-45%. It's only a 5500$ card. The financing it's a big deal. I had planned on paying it off next month anyways.
The 500$ on the QS is easy to make. We planned on paying our premiums in full. We do it every year to save 10% on insurance if paid in full then we just turn around and send in the payment once it posts to the card. Our insurance on our cars is about 2600 yr. so 10% is a decent savings lol.
Split the charge between the two to optimize utilization.

You beat me to it. If the store allows split payments, there's really no dilemma. OP should go for the 20% discount and split the charge between the two cards, this is what I would do.

Re: Using cash rewards.

Anonymous — Mon, 25 Apr 2016 11:50:11 GMT

I ended up doing what humuhumunukunukuapuaa ( yes I copied and pasted that lmao). It saved me 825 dollars by the time I factored in the 20% off, statement credit, and cash back. Still ended up with 0% interest in one portion until March and the other portion until October of 2017.
Not a bad payday. Lol