Financing Laptop w/ New CC Card

[Anonymous]

I was recently approved for a Chase Freedom Unlimited card with a $2100 CC limit and 0% APR for the first 15 months. There's also a $200 cashback reward on top of the usual 1.5% reward if I spend $500 within the first 3 months. 

I'm looking at buying a laptop around $1000. 

Would it be a smart move to buy the laptop on the card now, since I can use the bonus and 1.5% rewards towards the laptop? I can dedicate about $300-400 right away to paying the bill down, and then approximately $200 a month thereafter.

I'm worried about how soon the points will become available for use. Chase says 6-8 weeks, but my first payment is not due until March. 

My current overall CC limit is now $3100, so am concerned about CC utilization and how that will impact my score. 

Thank you for any advice! 

[K-in-Boston]

The points for the purchase and the signup bonus would both be available on the next statement closing. Utilization has no memory so I wouldn’t worry about it too much since you’ll be making substantial payments. If possible you may want to try to pay it down slightly before your statement closes to reduce the amount that is reported to the credit bureaus.

If a Sapphire Preferred or Reserve is on your list for later down the road, keep in mind that those Ultimate Rewards are far more valuable than the $0.01 you get for statement credit. Otherwise, certainly you could use the points earned from the purchase and SUB to knock down that balance.

[NRB525]

Congrats on the new card.

Enjoy the 0% APR and save the UR points, they can be more valuable later. Worst case they will keep the same 1c value. The utilization will be more than you are used to, but in absolute dollars does not sound high. As you pay it down over several months utilization will come down again. 

[Anonymous]

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@Anonymous wrote:

... Would it be a smart move to buy the laptop on the card ...

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Yes. 

[Anonymous]

I just did this same thing basically. Got a new chase freedom (the 5% categories one) with a $6500 limit, bought new $3300 MacBook Pro (ouch, but that is a powerful computer, using it for a home recording studio), will be probably making $100 payments on it until the 0 apr period ends or I run out of credit.

[Anonymous]

Unless you have immediate plans to app for another CC, i wouldn't worry about utilization while enjoying 0% APR.

Obviously don't pay only minimums, but no need to pay big up front unless you're comfortable with it. And want to be out of debt quicker. 

Of course the decision is all yours.

[Anonymous]

Using the card now is getting a nice 20% discount right off the bat by getting the SUB as a statement credit. Sometimes card companies credit the SUB to your account a few days after the purchase payment clears, and other times within 1 or 2 statement cycles. Not sure if they base it on the types of purchases (returnable vs non returnable items), such as a bunch of restaurant charges or certain travel items (non returnable/refundable), or things that can be easily returned. But I don't think that will affect you much, although you mentioned point availability. You should see the SUB well before you pay it off.

Congrats on the new card.

[Citylights18]

As a reference point I cleared my CSP bonus on 12/29 and didn't recieve the actual points until the day my statement posted on 1/15.

[Anonymous]

or you can keep that card with $2100 limit and apply for Dell Preferred Account, its easy to get approved so you will have seperate account and you dont have to get dell laptop but you can go to any Microsoft store and purchase their nice laptops and use the credit.

[CreditInspired]

Hi OP and welcome to myFICO

Congrats on the approval and you are good to go. You have a plan for sizable monthly payments so you're all set. 

Enjoy your new computer.