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!
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.
@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 !
@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.
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.
@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.
@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.
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.
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.