topic Re: Navigating Large Purchase & Next Strategy in Credit Cards

Navigating Large Purchase & Next Strategy

Turnberry75 — Fri, 26 Jan 2024 23:38:51 GMT

I'm purchasing a new A/C for 12k and don't want to dip into savings. I've spent some time trying to determine my best 0% APR purchase/BT option and while I was seriously considering the WF Reflect or the U.S. BVP (both 21 months 0% APR) I was scared away because of the fear over being approved with a low SL based on multiple reviews (despite excellent credit). I've been a Citibank member for 28 years and have a DP and DC so I ultimately decided on just adding the Simplicity (12 months 0% APR on purchases and 21 on BT's) because I was confident they'd give me a decent line - they just gave me a $15.4 S). I don't anticipate paying it off in 12 months so I'll need to do another BT in a year. I can either seek out a new 0% BT card at that time or I should be able to transfer to one of my Chase cards for 12 months 0% APR, but there's a 5% BT fee.

I need help in determining my next strategy (I'm new at this). My utilization will increase after I make this purchase AND I will be financing a new car in May/June for my daughter. Should I go ahead and seek out another reward or CB card since I only have the Citi DC now? Or will the 2nd hard pull within a few days have such a negative impact that it's not worth it? I know I need to build additional relationships with banks other than Citi and Chase.

Exp 841, Eqf 835

7% Utilization (115k)

200k inc

Citi DP, DC, & Simplicty (new)

Chase FU, SUR

AMEX

Re: Navigating Large Purchase & Next Strategy

NoMoreE46 — Fri, 26 Jan 2024 23:52:06 GMT

How much of a balance of the $12k do you anticipate will be remaining at the end of the 12 month promo on the Simplicity?

Re: Navigating Large Purchase & Next Strategy

Turnberry75 — Fri, 26 Jan 2024 23:57:35 GMT

I would anticipate I'll have $7k left in 12 months (will pay $250 monthly) unless I get a large bonus in April (doubtful). This year - new car purchase in May/June, car insurance for a 16 year old, & an 18 year old going to college in the Fall. Expenditures rising. I'd rather play the BT game for a few years than having to take out a HELOC or HEL with my local CU given the current rates.

Re: Navigating Large Purchase & Next Strategy

NoMoreE46 — Sat, 27 Jan 2024 00:05:49 GMT

Okay, having this figure

helps.

Have you signed a contract for the AC yet? Many installers have in house financing with Wells Fargo etc and sometimes they offer 0% for xx months ....

Re: Navigating Large Purchase & Next Strategy

Turnberry75 — Sat, 27 Jan 2024 00:20:18 GMT

The AC company I'm going with offers 0% for 5 years but only on high-end 30k units. There's a decent chance that my income will allow me to pay off the purchase in 24 months so with the 12 months 0% on the Simplicity and one more new BT card for 12 months plus I should be ok.

Re: Navigating Large Purchase & Next Strategy

NoMoreE46 — Sat, 27 Jan 2024 00:58:41 GMT

Ah gotcha.

So the BT shuffle it is. The BofA AmeriCard has been 0% for 21 months for a while. Hopefully, this could be your hedge after the 12 months of the Simplicity.

Re: Credit Cards with Generous SL - Page 2 - myFICO® Forums - 6733916

Re: Navigating Large Purchase & Next Strategy

markbeiser — Sat, 27 Jan 2024 02:08:43 GMT

@NoMoreE46 wrote:
Okay, having this figure
helps.

Have you signed a contract for the AC yet? Many installers have in house financing with Wells Fargo etc and sometimes they offer 0% for xx months ....

Tip from an HVAC contractor, you should almost ALWAYS find your own financing!
The HVAC contractor gets charged up front by Wells Fargo, et al, for the financing, and it is rolled into the price of the system.
Depending on the cost of the system, it could be thousands of dollars.
It isn't uncommon for that 0% for xx months financing deal to add more to the cost of the system than what you would pay in interest finding your own financing, especially if you have very good credit, and/or can do the 0% intro purchase APR CC game, then bounce it to 0% BT while paying it off.

This is true for most/all large home repair and renovation financing offers through contractors.

Re: Navigating Large Purchase & Next Strategy

ptatohed — Sat, 27 Jan 2024 09:27:26 GMT

@Turnberry75 wrote:
I'm purchasing a new A/C for 12k and don't want to dip into savings. I've spent some time trying to determine my best 0% APR purchase/BT option and while I was seriously considering the WF Reflect or the U.S. BVP (both 21 months 0% APR) I was scared away because of the fear over being approved with a low SL based on multiple reviews (despite excellent credit). I've been a Citibank member for 28 years and have a DP and DC so I ultimately decided on just adding the Simplicity (12 months 0% APR on purchases and 21 on BT's) because I was confident they'd give me a decent line - they just gave me a $15.4 S). I don't anticipate paying it off in 12 months so I'll need to do another BT in a year. I can either seek out a new 0% BT card at that time or I should be able to transfer to one of my Chase cards for 12 months 0% APR, but there's a 5% BT fee.

I need help in determining my next strategy (I'm new at this). My utilization will increase after I make this purchase AND I will be financing a new car in May/June for my daughter. Should I go ahead and seek out another reward or CB card since I only have the Citi DC now? Or will the 2nd hard pull within a few days have such a negative impact that it's not worth it? I know I need to build additional relationships with banks other than Citi and Chase.

Exp 841, Eqf 835
7% Utilization (115k)
200k inc

Citi DP, DC, & Simplicty (new)
Chase FU, SUR
AMEX

So, I am a little confused why you picked the Simplicity which is a near worthless card after you are done with the intro period. Had you chosen a Custom Cash, you would have had 15 months (not 12) purchase period at 0%, a nice $200 intro offer, and a great card at the end.

With that said, the Simplicity you chose has a 12 month 0% purchase, but a 21 month 0% BT (3% fee). My recommendation would be to charge the AC unit to one of your other cards and then transfer the balance to your new Simplicity for 21 months at 0%, as opposed to purchasing the AC with your Simplicity and only getting 12 months, and then wondering what to do after 12 months. The one-time 3% BTF hurts but paying high APR interest hurts more and, with the card you already have (Simplicity), you don't have to worry about playing the BT game after 12 short months. Hopefully you can pay her off before 21 months.

Good luck!

Re: Navigating Large Purchase & Next Strategy

Turnberry75 — Sat, 27 Jan 2024 14:14:48 GMT

@ptatohed I think you are right (I'm learning). Just to confirm, do you think it's better to do the 3% BT 21 month with Simplicity as opposed to applying for custom cash right now (2nd pull in 3 days) to see what they'd give me or is it not worth it considering the negative impact on my score. Probably not worth it.

Re: Navigating Large Purchase & Next Strategy

Harvey26 — Sat, 27 Jan 2024 18:32:25 GMT

@Turnberry75 I would second what @ptatohed said. I would either charge on one of your current cards whichever gets the best rewards or maybe look at a card that has a high SUB. maybe you could use those points for a nice vacation or to even help pay the balance down on the card and then do the BT over to the new CITI card.

Re: Navigating Large Purchase & Next Strategy

SouthJamaica — Sat, 27 Jan 2024 21:56:55 GMT

@Turnberry75 wrote:
I'm purchasing a new A/C for 12k and don't want to dip into savings. I've spent some time trying to determine my best 0% APR purchase/BT option and while I was seriously considering the WF Reflect or the U.S. BVP (both 21 months 0% APR) I was scared away because of the fear over being approved with a low SL based on multiple reviews (despite excellent credit). I've been a Citibank member for 28 years and have a DP and DC so I ultimately decided on just adding the Simplicity (12 months 0% APR on purchases and 21 on BT's) because I was confident they'd give me a decent line - they just gave me a $15.4 S). I don't anticipate paying it off in 12 months so I'll need to do another BT in a year. I can either seek out a new 0% BT card at that time or I should be able to transfer to one of my Chase cards for 12 months 0% APR, but there's a 5% BT fee.

I need help in determining my next strategy (I'm new at this). My utilization will increase after I make this purchase AND I will be financing a new car in May/June for my daughter. Should I go ahead and seek out another reward or CB card since I only have the Citi DC now? Or will the 2nd hard pull within a few days have such a negative impact that it's not worth it? I know I need to build additional relationships with banks other than Citi and Chase.

Exp 841, Eqf 835
7% Utilization (115k)
200k inc

Citi DP, DC, & Simplicty (new)
Chase FU, SUR
AMEX

If I were you I would become a member of a good credit union which offers a non-rewards platinum card with no balance transfer fee.

Re: Navigating Large Purchase & Next Strategy

ptatohed — Sun, 28 Jan 2024 00:53:03 GMT

@Turnberry75 wrote:
@ptatohed I think you are right (I'm learning). Just to confirm, do you think it's better to do the 3% BT 21 month with Simplicity as opposed to applying for custom cash right now (2nd pull in 3 days) to see what they'd give me or is it not worth it considering the negative impact on my score. Probably not worth it.

At this point, I'd probably work with what you have. Charge the purchase on whichever current card gives the best rewards (DC?) and then do the balance transfer. If you went for the citi Custom Cash now, the benefits would be a $200 intro offer, 15 months 0% (better than 12, but not as good as 21), and a great card to use later (after 15 months, when the AC is paid off). But it would be another hit to your credit in a short time and you'd essentially have no use for the Simplicity.

How long do you think you'll need to pay off the purchase?

Keep in mind, the AC guy may charge for using cedit card.

Good luck!

Re: Navigating Large Purchase & Next Strategy

markbeiser — Sun, 28 Jan 2024 03:20:11 GMT

@ptatohed wrote:
Keep in mind, the AC guy may charge for using cedit card.

I'd never dream of charging my customers for using a credit card for HVAC repairs/replacements!
We give a discount for cash/check.😉

🙃

Re: Navigating Large Purchase & Next Strategy

ptatohed — Sun, 28 Jan 2024 03:32:13 GMT

@markbeiser wrote:
@ptatohed wrote:
Keep in mind, the AC guy may charge for using cedit card.

I'd never dream of charging my customers for using a credit card for HVAC repairs/replacements!
We give a discount for cash/check.😉

🙃

LOL! Well said mb!

Re: Navigating Large Purchase & Next Strategy

ptatohed — Sun, 28 Jan 2024 04:03:37 GMT

@ptatohed wrote:
@Turnberry75 wrote:
@ptatohed I think you are right (I'm learning). Just to confirm, do you think it's better to do the 3% BT 21 month with Simplicity as opposed to applying for custom cash right now (2nd pull in 3 days) to see what they'd give me or is it not worth it considering the negative impact on my score. Probably not worth it.

At this point, I'd probably work with what you have. Charge the purchase on whichever current card gives the best rewards (DC?) and then do the balance transfer. If you went for the citi Custom Cash now, the benefits would be a $200 intro offer, 15 months 0% (better than 12, but not as good as 21), and a great card to use later (after 15 months, when the AC is paid off). But it would be another hit to your credit in a short time and you'd essentially have no use for the Simplicity.

How long do you think you'll need to pay off the purchase?

Keep in mind, the AC guy may charge for using cedit card.

Good luck!

I guess another option T75 is to apply for the citi CC and purchase the AC system with that card. You'd get the $200 bonus offer (+ 1% CB on the purchase price) and you'd have 15 months to pay at 0%. Then, if you do need the full 21 months to pay it off instead of 15, figure out early on how much you think you can pay in 15 months and how much balance would be left for months 16-21. Then, do a balance transfer early on (within the BT period) for only the $ amount left to pay in months 16-21 from CC to Simplicity. For another hard enquiry on your report, you'd get a great card, $200, 21 months to pay, and a lower cost BT fee (3% of month's 16-21 amount vs 3% of the whole purchase). Does that make sense?

Re: Navigating Large Purchase & Next Strategy

Turnberry75 — Sun, 28 Jan 2024 04:20:55 GMT

@ptatohed wrote:
@ptatohed wrote:
@Turnberry75 wrote:
@ptatohed I think you are right (I'm learning). Just to confirm, do you think it's better to do the 3% BT 21 month with Simplicity as opposed to applying for custom cash right now (2nd pull in 3 days) to see what they'd give me or is it not worth it considering the negative impact on my score. Probably not worth it.

At this point, I'd probably work with what you have. Charge the purchase on whichever current card gives the best rewards (DC?) and then do the balance transfer. If you went for the citi Custom Cash now, the benefits would be a $200 intro offer, 15 months 0% (better than 12, but not as good as 21), and a great card to use later (after 15 months, when the AC is paid off). But it would be another hit to your credit in a short time and you'd essentially have no use for the Simplicity.

How long do you think you'll need to pay off the purchase?

Keep in mind, the AC guy may charge for using cedit card.

Good luck!
I guess another option T75 is to apply for the citi CC and purchase the AC system with that card. You'd get the $200 bonus offer (+ 1% CB on the purchase price) and you'd have 15 months to pay at 0%. Then, if you do need the full 21 months to pay it off instead of 15, figure out early on how much you think you can pay in 15 months and how much balance would be left for months 16-21. Then, do a balance transfer early on (within the BT period) for only the $ amount left to pay in months 16-21 from CC to Simplicity. For another hard enquiry on your report, you'd get a great card, $200, 21 months to pay, and a lower cost BT fee (3% of month's 16-21 amount vs 3% of the whole purchase). Does that make sense?

This does make sense. I'm down to doing your option above or buying the AC on my Chase SUR card (only 1% cash back, but better than nothing) and transferring to my Simplicity for the 21 months at 0%. The Simplcity 3% BT fee less my 1% CB for the purchase on my SUR is about $200. I think your option above is best if I'm ok with another hard pull. I don't know if it matters, but these are my first hard pulls in two years and the Simplcity was my first new card in 3 1/2 years (Citi DC in 2020). With my credit I should have been leveraging for more, but will start doing so from now on as I learn from this community how to do it right.

Also, I didn't know Citi would allow a BT from one Citi card to another. I know that Chase will not allow that.

I appreciate all of the great advice!

Re: Navigating Large Purchase & Next Strategy

ptatohed — Sun, 28 Jan 2024 05:01:23 GMT

@Turnberry75 wrote:
@ptatohed wrote:
@ptatohed wrote:
@Turnberry75 wrote:
@ptatohed I think you are right (I'm learning). Just to confirm, do you think it's better to do the 3% BT 21 month with Simplicity as opposed to applying for custom cash right now (2nd pull in 3 days) to see what they'd give me or is it not worth it considering the negative impact on my score. Probably not worth it.

At this point, I'd probably work with what you have. Charge the purchase on whichever current card gives the best rewards (DC?) and then do the balance transfer. If you went for the citi Custom Cash now, the benefits would be a $200 intro offer, 15 months 0% (better than 12, but not as good as 21), and a great card to use later (after 15 months, when the AC is paid off). But it would be another hit to your credit in a short time and you'd essentially have no use for the Simplicity.

How long do you think you'll need to pay off the purchase?

Keep in mind, the AC guy may charge for using cedit card.

Good luck!
I guess another option T75 is to apply for the citi CC and purchase the AC system with that card. You'd get the $200 bonus offer (+ 1% CB on the purchase price) and you'd have 15 months to pay at 0%. Then, if you do need the full 21 months to pay it off instead of 15, figure out early on how much you think you can pay in 15 months and how much balance would be left for months 16-21. Then, do a balance transfer early on (within the BT period) for only the $ amount left to pay in months 16-21 from CC to Simplicity. For another hard enquiry on your report, you'd get a great card, $200, 21 months to pay, and a lower cost BT fee (3% of month's 16-21 amount vs 3% of the whole purchase). Does that make sense?
This does make sense. I'm down to doing your option above or buying the AC on my Chase SUR card (only 1% cash back, but better than nothing) and transferring to my Simplicity for the 21 months at 0%. The Simplcity 3% BT fee less my 1% CB for the purchase on my SUR is about $200. I think your option above is best if I'm ok with another hard pull. I don't know if it matters, but these are my first hard pulls in two years and the Simplcity was my first new card in 3 1/2 years (Citi DC in 2020). With my credit I should have been leveraging for more, but will start doing so from now on as I learn from this community how to do it right.

Also, I didn't know Citi would allow a BT from one Citi card to another. I know that Chase will not allow that.

I appreciate all of the great advice!

Sounds like you have a plan. Good luck and enjoy the new AC!

Good point, I don't know if you can BT from a citi card to a citi card. Maybe someone else can respond to that.

Re: Navigating Large Purchase & Next Strategy

Anonymous — Sun, 28 Jan 2024 05:03:30 GMT

@markbeiser wrote:
I'd never dream of charging my customers for using a credit card for HVAC repairs/replacements!
We give a discount for cash/check.😉

🙃

I usually advise my clients to surcharge for credit card ("we have to pay the fees you see") and a surcharge for cash ("oh, we have take time to count it, check for bad notes, and the deposit it, plus the risk"). Yes, they need training as to how to handle customers who wish to change payment method on hearing of a surcharge on their first choice, but I am not going to give any more secrets away for free!

But just bear in mind if you have already massively overcharged them (which I hope you have, HVAC knowledge isn't free either), you can graciously charge just half the surcharge as a goodwill gesture for being such a good customer.

Re: Navigating Large Purchase & Next Strategy

ptatohed — Sun, 28 Jan 2024 05:12:05 GMT

@Anonymous wrote:
@markbeiser wrote:
I'd never dream of charging my customers for using a credit card for HVAC repairs/replacements!
We give a discount for cash/check.😉

🙃
I usually advise my clients to surcharge for credit card ("we have to pay the fees you see") and a surcharge for cash ("oh, we have take time to count it, check for bad notes, and the deposit it, plus the risk"). Yes, they need training as to how to handle customers who wish to change payment method on hearing of a surcharge on their first choice, but I am not going to give any more secrets away for free!
But just bear in mind if you have already massively overcharged them (which I hope you have, HVAC knowledge isn't free either), you can graciously charge just half the surcharge as a goodwill gesture for being such a good customer.

I was at a tint/wrap shop getting some of my chrome wrapped on my Q50 Red Sport several months ago and my preference of course was to pay with my 3% AOD but the fee was 3.X%. I negotiated the fee to 2.X% so I came out just a little ahead.

Re: Navigating Large Purchase & Next Strategy

markbeiser — Sun, 28 Jan 2024 06:30:21 GMT

@Anonymous wrote:
@markbeiser wrote:
I'd never dream of charging my customers for using a credit card for HVAC repairs/replacements!
We give a discount for cash/check.😉

🙃
I usually advise my clients to surcharge for credit card ("we have to pay the fees you see") and a surcharge for cash ("oh, we have take time to count it, check for bad notes, and the deposit it, plus the risk"). Yes, they need training as to how to handle customers who wish to change payment method on hearing of a surcharge on their first choice, but I am not going to give any more secrets away for free!
But just bear in mind if you have already massively overcharged them (which I hope you have, HVAC knowledge isn't free either), you can graciously charge just half the surcharge as a goodwill gesture for being such a good customer.

It is actually illegal in Texas to charge a surcharge for taking credit card payments from customers, per chapter 604A of the Business and Commerce Code.
Slam dunk $500 civil fine from the state, all the customer has to do is fill out an online form, and upload the invoice. We would also have to refund the surcharge.
Also is a violation of our merchant agreements with the credit card processors, as well as our professional licensing agreement with the department of licensing and regulation, so we could face further administrative sanctions against our licence.
Contrary to popular belief, and its reputation, Texas is one of the most heavily regulated states when it comes to professional and occupational licensing.
Though I do find it amusing that there was a decades long period where barbers had to have a state license, but electricians had no state wide licensing until less than 20 years ago!