topic Re: Chase Amazon V.S. New Options in Credit Cards

Chase Amazon V.S. New Options

UH_HUH — Thu, 22 Oct 2020 00:16:59 GMT

So I got this email about 10 minutes ago.

It says that you can now choose between rewards,

or pay over time zero % financing.

I will let my bad photography explain this better :-)

Re: Chase Amazon V.S. New Options

Anonymous — Thu, 22 Oct 2020 00:31:39 GMT

I've never been a 0% guy, as it just takes away rewards in many cases. It's like getting 5% off at Lowe's. I've never used their 0% financing since it would result in giving up the 5%. Same thing here. I get it if you're in a financial pinch for the holidays or whatever that such an offer can sound enticing, but I personally never put myself into such a position.

Re: Chase Amazon V.S. New Options

UH_HUH — Thu, 22 Oct 2020 00:34:02 GMT

@Anonymous wrote:
I've never been a 0% guy, as it just takes away rewards in many cases. It's like getting 5% off at Lowe's. I've never used their 0% financing since it would result in giving up the 5%. Same thing here. I get it if you're in a financial pinch for the holidays or whatever that such an offer can sound enticing, but I personally never put myself into such a position.

I agree completly @Anonymous

But I do like trying to understanding WHY they are

trying this new approach. Seems "cheapish" to me.

Re: Chase Amazon V.S. New Options

ccquest — Thu, 22 Oct 2020 00:39:40 GMT

Competes with cards like Best Buy where they let you break up that big purchase to avoid being so tight on spending around the holidays probably. Not sure if that's been a feature prior and maybe they're just promoting it now?

Re: Chase Amazon V.S. New Options

blindambition — Thu, 22 Oct 2020 00:45:51 GMT

I received the same. Not worth it on most purchases. Also, you're charged full amount affecting utilization on card.

Amazon and Chase long ago removed equal payment plan. You were charged monthly, up to 5 months I believe, but not charged full amount. On Amazon devices.

Re: Chase Amazon V.S. New Options

UH_HUH — Thu, 22 Oct 2020 00:49:06 GMT

@blindambition wrote:
I received the same. Not worth it on most purchases. Also, you're charged full amount affecting utilization on card.
Amazon and Chase long ago removed equal payment plan. You were charged monthly, up to 5 months I believe, but not charged full amount. On Amazon devices.

That was an impressive feat of credit intellect @blindambition

^5 <high five>

:-)

Re: Chase Amazon V.S. New Options

ccquest — Thu, 22 Oct 2020 00:51:31 GMT

@blindambition wrote:
You were charged monthly, up to 5 months I believe, but not charged full amount. On Amazon devices.

That's still an option through Amazon directly, not based on the card.

That's from the Echo Show product page and here is the linked info page.

Re: Chase Amazon V.S. New Options

UH_HUH — Thu, 22 Oct 2020 00:55:10 GMT

@ccquest wrote:
@blindambition wrote:
You were charged monthly, up to 5 months I believe, but not charged full amount. On Amazon devices.
That's still an option through Amazon directly, not based on the card.

That's from the Echo Show product page and here is the linked info page.

Gotta put on a hat. Getting some serious credit knowlege

dropped in here. Good stuff @ccquest

Re: Chase Amazon V.S. New Options

blindambition — Thu, 22 Oct 2020 01:10:44 GMT

@ccquest wrote:
@blindambition wrote:
You were charged monthly, up to 5 months I believe, but not charged full amount. On Amazon devices.
That's still an option through Amazon directly, not based on the card.

That's from the Echo Show product page and here is the linked info page.

That page still shows you're charged full price on purchase, then broken into payments.

It used to charge let's say $125. $25+tax on first payment, remaining was $25 a month, but that $100 wasn't charged at beginning.

Re: Chase Amazon V.S. New Options

ccquest — Thu, 22 Oct 2020 01:14:19 GMT

@blindambition wrote:
That page still shows you're charged full price on purchase, then broken into payments.
It used to charge let's say $125. $25+tax on first payment, remaining was $25 a month, but that $100 wasn't charged at beginning.

Not at all?

It says broken into 5 payments on the page then the table shows the due dates of those. Initial payment when it ships (like always, but 1/5 the price), then first (really second, that's misleading) through fourth (actually fifth) payments over the next 4 months.

I guess it depends on your interpretation of:

You will be charged the full price of the qualifying product you selected in one initial payment and four subsequent monthly payments

I read it as the initial AND four more, not as one big initial then splitting it (that makes no sense to me).

Re: Chase Amazon V.S. New Options

Anonymous — Thu, 22 Oct 2020 01:18:58 GMT

@ccquest wrote:
@blindambition wrote:
You were charged monthly, up to 5 months I believe, but not charged full amount. On Amazon devices.
That's still an option through Amazon directly, not based on the card.

That's from the Echo Show product page and here is the linked info page.

So weird. It's still gone for me. I used to get offers on all kinds of products and now it's full price all the time unless I finance with my Amazon Store Card. I assumed they got rid of Equal Pay too.

Re: Chase Amazon V.S. New Options

AverageJoesCredit — Thu, 22 Oct 2020 01:20:47 GMT

@Anonymous wrote:
I've never been a 0% guy, as it just takes away rewards in many cases. It's like getting 5% off at Lowe's. I've never used their 0% financing since it would result in giving up the 5%. Same thing here. I get it if you're in a financial pinch for the holidays or whatever that such an offer can sound enticing, but I personally never put myself into such a position.

Why does everyone have to be in a financial pinch to take advantage of a 0% apr promo? Its incredible that some people that are better off seem to be putting terms like this as for people struggling or in other posts lately that if you take advantage of a bt you are the lowest of low, etc. Honestly people need to remember, especially here on myFico where rewards are king, that there are lots of reasons for people of all creeds of income,spend, life situations, to choose to use these promos that may not get rewards back. Sorry, been one heck of a year.

Re: Chase Amazon V.S. New Options

UH_HUH — Thu, 22 Oct 2020 01:25:51 GMT

@AverageJoesCredit wrote:
@Anonymous wrote:
I've never been a 0% guy, as it just takes away rewards in many cases. It's like getting 5% off at Lowe's. I've never used their 0% financing since it would result in giving up the 5%. Same thing here. I get it if you're in a financial pinch for the holidays or whatever that such an offer can sound enticing, but I personally never put myself into such a position.
Why does everyone have to be in a financial pinch to take advantage of a 0% apr promo? Its incredible that some people that are better off seem to be putting terms like this as for people struggling or in other posts lately that if you take advantage of a bt you are the lowest of low, etc. Honestly people need to remember, especially here on myFico where rewards are king, that there are lots of reasons for people of all creeds of income,spend, life situations, to choose to use these promos that may not get rewards back. Sorry, been one heck of a year.

You can say whatever you want @AverageJoesCredit

I like diversity of opinions,and I agree with you personally :-)

You gotta do what ya gotta do sometimes.

Anyone that can't understand that

has had a blessed life.

Re: Chase Amazon V.S. New Options

Citylights18 — Thu, 22 Oct 2020 01:51:55 GMT

@AverageJoesCredit wrote:
@Anonymous wrote:
I've never been a 0% guy, as it just takes away rewards in many cases. It's like getting 5% off at Lowe's. I've never used their 0% financing since it would result in giving up the 5%. Same thing here. I get it if you're in a financial pinch for the holidays or whatever that such an offer can sound enticing, but I personally never put myself into such a position.
Why does everyone have to be in a financial pinch to take advantage of a 0% apr promo? Its incredible that some people that are better off seem to be putting terms like this as for people struggling or in other posts lately that if you take advantage of a bt you are the lowest of low, etc. Honestly people need to remember, especially here on myFico where rewards are king, that there are lots of reasons for people of all creeds of income,spend, life situations, to choose to use these promos that may not get rewards back. Sorry, been one heck of a year.

I'm currently taking advantage of a 0% APR on a store card.

Anytime someone goes down to their Verizon, AT&T or T-Mobile store to get a iPhone 12 on one of those 24 month financing deals they'll have their credit pulled and be taking what amounts to a 0% APR offer.

Re: Chase Amazon V.S. New Options

Anonymous — Thu, 22 Oct 2020 02:45:59 GMT

@AverageJoesCredit wrote:
Why does everyone have to be in a financial pinch to take advantage of a 0% apr promo? Its incredible that some people that are better off seem to be putting terms like this as for people struggling or in other posts lately that if you take advantage of a bt you are the lowest of low, etc.

I believe you missed the other half of my post, where I said taking advantage of a 0% promo at the expense of rewards... as in giving up the rewards for the 0% promo. This is nothing like a BT. Like if I were to put $10k in windows on my Lowe's card to take advantage of the 0% financing, I give up $500 to do so. Personally that wouldn't be my way of doing it, but no issue if someone else goes that route.

Re: Chase Amazon V.S. New Options

sxa001 — Thu, 22 Oct 2020 04:14:02 GMT

While I haven't done a 0% financing offer in a long time (last one was on the engagement ring for my now wife from Blue Nile) and I do agree that rewards are great it is really nice that the options exist.

Also if someone really wanted to earn extra pennies. Put $1000 in a DCU Savings account for a hear would earn more on a $1000 Amazon purchase in 15 months than the 5% rewards by a whole $10.

Re: Chase Amazon V.S. New Options

Anonymous — Thu, 22 Oct 2020 06:37:31 GMT

@Anonymous wrote:
@AverageJoesCredit wrote:
Why does everyone have to be in a financial pinch to take advantage of a 0% apr promo? Its incredible that some people that are better off seem to be putting terms like this as for people struggling or in other posts lately that if you take advantage of a bt you are the lowest of low, etc.
I believe you missed the other half of my post, where I said taking advantage of a 0% promo at the expense of rewards... as in giving up the rewards for the 0% promo. This is nothing like a BT. Like if I were to put $10k in windows on my Lowe's card to take advantage of the 0% financing, I give up $500 to do so. Personally that wouldn't be my way of doing it, but no issue if someone else goes that route.

I still think it's worth pointing out these things. Sadly most people are not that great at simple math (and, unlike poor reading skills, have no hesitation "boasting" about it, "I was never any good at math".)

So yes, of course, there are great reasons where someone with no financial pressure might opt to pass up on 5% rewards, such as in order to free up cash for a better return. But, if there is no financial need (= PIF would cause some hardship), then at least be aware of the tradeoffs. And if there is a financial need, you do what you need to do....

Re: Chase Amazon V.S. New Options

wasCB14 — Thu, 22 Oct 2020 08:20:42 GMT

There's a reasonable economic argument that if someone chooses 0% financing over maximum rewards (setting aside things like extended warranties), he or she essentially pays interest in the amount of the lost rewards.

If you choose 0% financing (and no rewards) over 5% cash back on a $1,000 purchase, you're effectively paying $50 of interest on something that would otherwise only cost $950.

I just use my WWFCR for both 5.25% (capped) and another 8 months at 0%.

Re: Chase Amazon V.S. New Options

Pizzarina_Sbarro — Thu, 22 Oct 2020 13:09:57 GMT

Honestly, I used to have massive anxiety about making purchases over a few hundred dollars even when I had enough money to make the purchase. This led to me putting off "big" purchases for ages for things that mattered for quality of life (proper mattress, working kitchen appliances, etc.) Forgoing rewards for 0% financing can be worth it for peace of mind.

That said, I recently used the Amazon zero interest financing for a new computer and it was fine, but I probably wouldn't do it again. It gets annoying to keep track of monthly payments when there's a mix of new charges and the financed amount. Chase does update the amount owed for you, but it's based on the previous billing cycle and I found it a little confusing and worried about not paying the correct amount so overpaid for many months lol. Now that Discover has their Amazon quarter, I've switched new charges to that card which makes things a little easier to manage.

Re: Chase Amazon V.S. New Options

Brian_Earl_Spilner — Thu, 22 Oct 2020 13:17:39 GMT

@ccquest wrote:
Competes with cards like Best Buy where they let you break up that big purchase to avoid being so tight on spending around the holidays probably. Not sure if that's been a feature prior and maybe they're just promoting it now?

It's been around at least since I got my Amazon card a couple of years ago.