topic Re: Discover Large Purchase in Credit Cards

Discover Large Purchase

recoveringfrombk7 — Tue, 02 Jun 2020 04:11:39 GMT

I am planning to get my roof done within the next month. The cost is $5300, my limit is $14,500. I have 0% financing on my Discover card through 2/2021. I have read that Discover's minimum is 3%, which in this case would be $159. I plan to transfer the balance to NFCU at the end of the promotion with Discover to give myself an additional 12 months at either 0% or 1.99%, whatever they usually offer for the post Christmas time. I realize they may not offer it with the current economy, and if not, I will use a 5.99% Platinum. So my plan is to just make equal payments for the 20 or so total months. This puts me at around $253/month. Is this going to be okay? I'll PIF any additional use besides this balance, so no concern there. I'll be starting with ~37% utility once the charges go through and only trending down from there.

Is the $253/month enough to keep Discover from being worried about me? I'm not looking to poke the bear here. I can afford to pay more up front if some of the veterans here feel like it would be a wise move. Honestly I could pay for the entire roof now, and if NFCU doesn't run a BT promotion first quarter next year I may just pay off the balance with Discover and not bother with the BT at all. Trying to stay liquid given the current economy, so if I can stretch it out at 0% with a 0%/low percentage BT then I plan to do so.

Thanks for the help!

Re: Discover Large Purchase

NRB525 — Tue, 02 Jun 2020 04:36:43 GMT

Are you planning to use the card for any other purchases during the period? If so, then add those as PIF each month for that portion, so you aren't running up the balance.

I think your payment plan is reasonable. I'd go with $300 or more per month, just to try to make it look like you are accelerating it significantly.

Re: Discover Large Purchase

recoveringfrombk7 — Tue, 02 Jun 2020 04:39:29 GMT

@NRB525 wrote:
Are you planning to use the card for any other purchases during the period? If so, then add those as PIF each month for that portion, so you aren't running up the balance.
I think your payment plan is reasonable. I'd go with $300 or more per month, just to try to make it look like you are accelerating it significantly.

Yep I PIF all my cards (but leave one with a small balance) most of the time and intend to continue to do so. I realize AZEO is generally overkill, but with a BK less than 2 years old I'm just not ready to carry balances. Not because I cannot control them, but because they freak me out. Thanks for the help @NRB525 !

Re: Discover Large Purchase

Anonymous — Tue, 02 Jun 2020 06:49:52 GMT

If you don't want to risk a CLD, I would pay at least 2X the minimum. That's not a guarantee that it won't still happen but based on past DPs, it would be less likely.

Re: Discover Large Purchase

CreditInspired — Tue, 02 Jun 2020 07:55:05 GMT

@recoveringfrombk7 wrote:
I am planning to get my roof done within the next month. The cost is $5300, my limit is $14,500. I have 0% financing on my Discover card through 2/2021. I have read that Discover's minimum is 3%, which in this case would be $159. I plan to transfer the balance to NFCU at the end of the promotion with Discover to give myself an additional 12 months at either 0% or 1.99%, whatever they usually offer for the post Christmas time. I realize they may not offer it with the current economy, and if not, I will use a 5.99% Platinum. So my plan is to just make equal payments for the 20 or so total months. This puts me at around $253/month. Is this going to be okay? I'll PIF any additional use besides this balance, so no concern there. I'll be starting with ~37% utility once the charges go through and only trending down from there.

Is the $253/month enough to keep Discover from being worried about me? I'm not looking to poke the bear here. I can afford to pay more up front if some of the veterans here feel like it would be a wise move. Honestly I could pay for the entire roof now, and if NFCU doesn't run a BT promotion first quarter next year I may just pay off the balance with Discover and not bother with the BT at all. Trying to stay liquid given the current economy, so if I can stretch it out at 0% with a 0%/low percentage BT then I plan to do so.

Thanks for the help!

Your plan sounds ok; however, I calculate your payment for 12 months to be $451.92. For me, I like to pay off BTs in 11 months to be on the safe side. So, since you have the funds available, why not pay $496.27? Just my 2cents.

I have a BT on my Disco and since I can afford to pay more, I actually pay 5-8 times the minimum payment; but that's just me wanting to have it paid off really early.

Also, just before doing my BT, I asked Disco if there were any offers for a 12-month zero percent on purchases. There was. Please call and ask about this because without it, I definitely wouldnt use the card for purchases. I just like the idea of not having to worry about any purchases accruing interest on a BT card, even if one PIF.

So give Disco a call and see if they have an offer for you.

Re: Discover Large Purchase

CreditFun — Tue, 02 Jun 2020 13:24:02 GMT

About two weeks ago, my wife was declined a credit line increase due to lack of use of current credit line. She has a around 20k line right now.

She might charge lunch when a merchant doesn't accept apple pay or she can't find another card handy at the moment.

Don't over analyze. Go for it!

And along the way ask credit line increases!

Re: Discover Large Purchase

recoveringfrombk7 — Tue, 02 Jun 2020 13:36:44 GMT

@CreditInspired wrote:
@recoveringfrombk7 wrote:
I am planning to get my roof done within the next month. The cost is $5300, my limit is $14,500. I have 0% financing on my Discover card through 2/2021. I have read that Discover's minimum is 3%, which in this case would be $159. I plan to transfer the balance to NFCU at the end of the promotion with Discover to give myself an additional 12 months at either 0% or 1.99%, whatever they usually offer for the post Christmas time. I realize they may not offer it with the current economy, and if not, I will use a 5.99% Platinum. So my plan is to just make equal payments for the 20 or so total months. This puts me at around $253/month. Is this going to be okay? I'll PIF any additional use besides this balance, so no concern there. I'll be starting with ~37% utility once the charges go through and only trending down from there.

Is the $253/month enough to keep Discover from being worried about me? I'm not looking to poke the bear here. I can afford to pay more up front if some of the veterans here feel like it would be a wise move. Honestly I could pay for the entire roof now, and if NFCU doesn't run a BT promotion first quarter next year I may just pay off the balance with Discover and not bother with the BT at all. Trying to stay liquid given the current economy, so if I can stretch it out at 0% with a 0%/low percentage BT then I plan to do so.

Thanks for the help!
Your plan sounds ok; however, I calculate your payment for 12 months to be $451.92. For me, I like to pay off BTs in 11 months to be on the safe side. So, since you have the funds available, why not pay $496.27? Just my 2cents.

I have a BT on my Disco and since I can afford to pay more, I actually pay 5-8 times the minimum payment; but that's just me wanting to have it paid off really early.

Also, just before doing my BT, I asked Disco if there were any offers for a 12-month zero percent on purchases. There was. Please call and ask about this because without it, I definitely wouldnt use the card for purchases. I just like the idea of not having to worry about any purchases accruing interest on a BT card, even if one PIF.

So give Disco a call and see if they have an offer for you.

@CreditInspired

I think maybe I explained poorly.

I have until 2/2021 to make a 0% purchase on this card, it's fairly new I got it in 12/2019. When the 0% purchase period expires I intend to either transfer it to NFCU for an additional 12 months if they have a 0% or 1.99% offer, so the total time would be 20-21 months to spread payments over. If NFCU has nothing available I'll probably just pay the balance in full at that point.

Re: Discover Large Purchase

recoveringfrombk7 — Tue, 02 Jun 2020 13:39:08 GMT

@Anonymous wrote:
If you don't want to risk a CLD, I would pay at least 2X the minimum. That's not a guarantee that it won't still happen but based on past DPs, it would be less likely.

You really think a maximum util on the card of 37% could worry them that much? I mean realistically assuming my calculations are correct we are talking 253 vs 318, so it's a non issue to bump it.

Re: Discover Large Purchase

Remedios — Tue, 02 Jun 2020 14:01:20 GMT

@recoveringfrombk7 wrote:
@CreditInspired wrote:
@recoveringfrombk7 wrote:
I am planning to get my roof done within the next month. The cost is $5300, my limit is $14,500. I have 0% financing on my Discover card through 2/2021. I have read that Discover's minimum is 3%, which in this case would be $159. I plan to transfer the balance to NFCU at the end of the promotion with Discover to give myself an additional 12 months at either 0% or 1.99%, whatever they usually offer for the post Christmas time. I realize they may not offer it with the current economy, and if not, I will use a 5.99% Platinum. So my plan is to just make equal payments for the 20 or so total months. This puts me at around $253/month. Is this going to be okay? I'll PIF any additional use besides this balance, so no concern there. I'll be starting with ~37% utility once the charges go through and only trending down from there.

Is the $253/month enough to keep Discover from being worried about me? I'm not looking to poke the bear here. I can afford to pay more up front if some of the veterans here feel like it would be a wise move. Honestly I could pay for the entire roof now, and if NFCU doesn't run a BT promotion first quarter next year I may just pay off the balance with Discover and not bother with the BT at all. Trying to stay liquid given the current economy, so if I can stretch it out at 0% with a 0%/low percentage BT then I plan to do so.

Thanks for the help!
Your plan sounds ok; however, I calculate your payment for 12 months to be $451.92. For me, I like to pay off BTs in 11 months to be on the safe side. So, since you have the funds available, why not pay $496.27? Just my 2cents.

I have a BT on my Disco and since I can afford to pay more, I actually pay 5-8 times the minimum payment; but that's just me wanting to have it paid off really early.

Also, just before doing my BT, I asked Disco if there were any offers for a 12-month zero percent on purchases. There was. Please call and ask about this because without it, I definitely wouldnt use the card for purchases. I just like the idea of not having to worry about any purchases accruing interest on a BT card, even if one PIF.

So give Disco a call and see if they have an offer for you.
@CreditInspired

I think maybe I explained poorly.

I have until 2/2021 to make a 0% purchase on this card, it's fairly new I got it in 12/2019. When the 0% purchase period expires I intend to either transfer it to NFCU for an additional 12 months if they have a 0% or 1.99% offer, so the total time would be 20-21 months to spread payments over. If NFCU has nothing available I'll probably just pay the balance in full at that point.

My personal opinion, you will be just fine.

Once you do your large purchase, dont use card for anything else if you are not planning on paying additional amount.

That way balance will go down, and everyone is going to be happy.

I wouldn't pay minimum only. Doubling it would be fine.

They gave you credit for a reason. Use it.

Sky is not falling.

Re: Discover Large Purchase

recoveringfrombk7 — Tue, 02 Jun 2020 14:11:37 GMT

@Remedios wrote:
@recoveringfrombk7 wrote:
@CreditInspired wrote:
@recoveringfrombk7 wrote:
I am planning to get my roof done within the next month. The cost is $5300, my limit is $14,500. I have 0% financing on my Discover card through 2/2021. I have read that Discover's minimum is 3%, which in this case would be $159. I plan to transfer the balance to NFCU at the end of the promotion with Discover to give myself an additional 12 months at either 0% or 1.99%, whatever they usually offer for the post Christmas time. I realize they may not offer it with the current economy, and if not, I will use a 5.99% Platinum. So my plan is to just make equal payments for the 20 or so total months. This puts me at around $253/month. Is this going to be okay? I'll PIF any additional use besides this balance, so no concern there. I'll be starting with ~37% utility once the charges go through and only trending down from there.

Is the $253/month enough to keep Discover from being worried about me? I'm not looking to poke the bear here. I can afford to pay more up front if some of the veterans here feel like it would be a wise move. Honestly I could pay for the entire roof now, and if NFCU doesn't run a BT promotion first quarter next year I may just pay off the balance with Discover and not bother with the BT at all. Trying to stay liquid given the current economy, so if I can stretch it out at 0% with a 0%/low percentage BT then I plan to do so.

Thanks for the help!
Your plan sounds ok; however, I calculate your payment for 12 months to be $451.92. For me, I like to pay off BTs in 11 months to be on the safe side. So, since you have the funds available, why not pay $496.27? Just my 2cents.

I have a BT on my Disco and since I can afford to pay more, I actually pay 5-8 times the minimum payment; but that's just me wanting to have it paid off really early.

Also, just before doing my BT, I asked Disco if there were any offers for a 12-month zero percent on purchases. There was. Please call and ask about this because without it, I definitely wouldnt use the card for purchases. I just like the idea of not having to worry about any purchases accruing interest on a BT card, even if one PIF.

So give Disco a call and see if they have an offer for you.
@CreditInspired

I think maybe I explained poorly.

I have until 2/2021 to make a 0% purchase on this card, it's fairly new I got it in 12/2019. When the 0% purchase period expires I intend to either transfer it to NFCU for an additional 12 months if they have a 0% or 1.99% offer, so the total time would be 20-21 months to spread payments over. If NFCU has nothing available I'll probably just pay the balance in full at that point.
My personal opinion, you will be just fine.
Once you do your large purchase, dont use card for anything else if you are not planning on paying additional amount.
That way balance will go down, and everyone is going to be happy.
I wouldn't pay minimum only. Doubling it would be fine.
They gave you credit for a reason. Use it.
Sky is not falling.

@Remedios

It would be falling into my house if I don't get a new roof haha. Yep I only plan on carrying this purchase, anything else is PIF.

Alright, seems like the consensus is double the minimum. Thanks everyone for chiming in.

Re: Discover Large Purchase

pinkandgrey — Tue, 02 Jun 2020 14:32:51 GMT

In my personal experience, Disco is pretty laid-back. At one point I had mine (19.7k limit) run up to $11,000. I always paid more than minimum, but not SUBSTANTIALLY more than the minimum. I never had any problems and even got increases during that period.

Oh, and for me, Disco's minimum has always been 2%.

Re: Discover Large Purchase

recoveringfrombk7 — Tue, 02 Jun 2020 14:54:00 GMT

@pinkandgrey that's great to hear. I'll definitely do a min of 253 regardless. Yeah DH carried substantial BTs (>50%) with them and usually paid near the minimum. All that ended up happening was he got CLIs. I just want to be extra cautious because I have the BK and do not have his scores/history and now pandemic etc. This is my largest limit card, at least for now. Navy seems to be catching up.

Re: Discover Large Purchase

Anonymous — Wed, 03 Jun 2020 01:49:49 GMT

As long as you consistently pay them back month to month and don't go crazy running up the balance even further, I wouldn't even worry about it.

Back in September when my Disco limit was still $9500, I ran the balance up to approximately $7800. They didn't even raise and eyebrow or bat an eyelash. I paid them back over a period of 3- 3 1/2 months.

Re: Discover Large Purchase

Anonymous — Wed, 03 Jun 2020 01:53:29 GMT

@Remedios wrote:
@recoveringfrombk7 wrote:
@CreditInspired wrote:
@recoveringfrombk7 wrote:
I am planning to get my roof done within the next month. The cost is $5300, my limit is $14,500. I have 0% financing on my Discover card through 2/2021. I have read that Discover's minimum is 3%, which in this case would be $159. I plan to transfer the balance to NFCU at the end of the promotion with Discover to give myself an additional 12 months at either 0% or 1.99%, whatever they usually offer for the post Christmas time. I realize they may not offer it with the current economy, and if not, I will use a 5.99% Platinum. So my plan is to just make equal payments for the 20 or so total months. This puts me at around $253/month. Is this going to be okay? I'll PIF any additional use besides this balance, so no concern there. I'll be starting with ~37% utility once the charges go through and only trending down from there.

Is the $253/month enough to keep Discover from being worried about me? I'm not looking to poke the bear here. I can afford to pay more up front if some of the veterans here feel like it would be a wise move. Honestly I could pay for the entire roof now, and if NFCU doesn't run a BT promotion first quarter next year I may just pay off the balance with Discover and not bother with the BT at all. Trying to stay liquid given the current economy, so if I can stretch it out at 0% with a 0%/low percentage BT then I plan to do so.

Thanks for the help!
Your plan sounds ok; however, I calculate your payment for 12 months to be $451.92. For me, I like to pay off BTs in 11 months to be on the safe side. So, since you have the funds available, why not pay $496.27? Just my 2cents.

Henny Penny will be happy to hear the sky isn't falling.
@CreditInspired

I think maybe I explained poorly.

I have until 2/2021 to make a 0% purchase on this card, it's fairly new I got it in 12/2019. When the 0% purchase period expires I intend to either transfer it to NFCU for an additional 12 months if they have a 0% or 1.99% offer, so the total time would be 20-21 months to spread payments over. If NFCU has nothing available I'll probably just pay the balance in full at that point.
My personal opinion, you will be just fine.
Once you do your large purchase, dont use card for anything else if you are not planning on paying additional amount.
That way balance will go down, and everyone is going to be happy.
I wouldn't pay minimum only. Doubling it would be fine.
They gave you credit for a reason. Use it.
Sky is not falling.

Re: Discover Large Purchase

joltdude — Wed, 03 Jun 2020 01:55:25 GMT

Miss Disco doesn't usually blink an eye at a large bt or a 0% offer... in normal times, this can trigger a CLI even .....

Do pay generously over the minimum however...

-J

Re: Discover Large Purchase

Anonymous — Wed, 03 Jun 2020 23:36:37 GMT

Personal experience:
I've done 3 or 4 large 0% BTs with Discover & always pay the minimum for 11 months. My most recent was April of 2019 which I BT'd $9k of my $11.5k limit. I literally paid the minimum until the last day (lost track of time given COVID) & paid off my $7k balance two days before my statement closed in April of 2020. Two days later I received an email saying they upped my limit to $15k which shocked me since COVID scared a lot of lenders.

For me if you have the money & know you will always have the money, then pay the minimum because that's honestly the point of taking advantage of 0% offers. Unless of course you plan on financing something big which may require lower utilization.

Edit: Just for context, below are the emails received within three days of each other. Date is in the top right corner