Navigating Large Purchase & Next Strategy

[Turnberry75]

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

[NoMoreE46]

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?

[Turnberry75]

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.  

[NoMoreE46]

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 ....

[Turnberry75]

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. 

[NoMoreE46]

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

[markbeiser]

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@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 ....

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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.

[ptatohed]

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@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

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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!  

[Turnberry75]

@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. 

[Harvey26]

@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.