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How Should I Use This Money For?

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New Contributor

How Should I Use This Money For?

Recently I was given some good news in these trying times (finally!)

 

Without getting into specifics, via some family changes, I will have about $10,000 in cash in my PayPal account. Instead of just wasting this one-time asset, I thought I'd use it as collateral to do something for myself. Build my credit or get access to opportunities I may not have otherwise had before.


I'm looking for suggestions. How can I use this to better my financial position and overall outlook credit wise and establish myself. I

currently have very little debt anyway. I thought that PayPal might give me some type of premium card, since they see I have so much sitting in one of their accounts. Or should I move it around elsewhere in order to make it work for me? Looking to be reasonable of course, but take advantage of this opportunity I might not get back.


So is PayPal credit card the way to go, or something else? What would you do? What would you suggest is most bang for the buck (pun intended)?

8 REPLIES 8
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Community Leader
Senior Contributor

Re: How Should I Use This Money For?

If you can give us details on your current credit situation, we can answer that part of the question. List out cards/loans, and for each, the balance, limit, and status. If you're looking good, then there are worse things to do than just saving it as an emergency fund.



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $86,900 | Agg. Util under 5%
Message 2 of 9
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Established Contributor

Re: How Should I Use This Money For?

you could decide on a bank/CU you would like to do future business with - for CC's - LOC or an Auto Loan

look for one with a higher savings % rate

 

then open a checking and savings with that bank or CU and drop some or all of the money into the savings account to start building a relationship 

this could be your Emerg Fund

 

 

July 31/2019. EX-712. EQ-704. TU-726
Dec 16/2019. EX. 721. EQ. 723. TU 746
Aug 8/2020 EX. 728 EQ. 714 TU 744
Oct 22/2020 EX. 725 EQ. 716 TU 742
Inq. EX 6 EQ 4 TU 2 - - CC 5x24, 1x12
Amex BCP $20k - Apple GS $17k - BMW/Elan $5k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase United Club Infinite $20k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $20.5k - HSBC Gold - $10.5k - Wells Sig Visa $12k
Message 3 of 9
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Community Leader
Senior Contributor

Re: How Should I Use This Money For?

^^^ that. Building a strong CU relationship can pay off big. They're far less likely to act against you in bad times (like now, with the economy in flux and the big banks cutting lines of credit to customers whose financial behaviors may not warrant it).



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $86,900 | Agg. Util under 5%
Message 4 of 9
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Frequent Contributor

Re: How Should I Use This Money For?

I would suggest Amex HYS account. You would earn more interest and although Amex is not a relationship bank (JMO) it could work in your benefit when applying for Amex card (i.e if you don't have a Amex card). The previous post about credit union account is also a very good option. Credit unions also offer higher interest than the major banks and they offer other services that you could use in the future (cc, PL, home and auto loans)

Amex Blue Cash $28k
Chase FU $11.2k
BOA Cash Rewards $20k
Comenity BJ's Perks Plus M/C $10k
Cap1 QS $750 (AU), BOA Auto
March. 2020 TU 781, EX 775, EQ 776
INQ 1/6, 1/12, 2/24.......TU-0, EX-2 EQ-2
Message 5 of 9
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Epic Contributor

Re: How Should I Use This Money For?

I strongly agree with having an Emergency reserve, and getting safe interest on it is a bonus.

 

 

Message 6 of 9
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Valued Contributor

Re: How Should I Use This Money For?

I would consider earning some savings account bonuses. 

Message 7 of 9
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New Contributor

Re: How Should I Use This Money For?

All great options. And how about that title typo? That was too good to change...

Message 8 of 9
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Established Contributor

Re: How Should I Use This Money For?

^ it's more the grammer that is throwing me off...

July 31/2019. EX-712. EQ-704. TU-726
Dec 16/2019. EX. 721. EQ. 723. TU 746
Aug 8/2020 EX. 728 EQ. 714 TU 744
Oct 22/2020 EX. 725 EQ. 716 TU 742
Inq. EX 6 EQ 4 TU 2 - - CC 5x24, 1x12
Amex BCP $20k - Apple GS $17k - BMW/Elan $5k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase United Club Infinite $20k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $20.5k - HSBC Gold - $10.5k - Wells Sig Visa $12k
Message 9 of 9
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