Question #2 for the Tailgate

[Big Country]

normally i pay off the balance every month. but with this new amex, i got to thinking....they're giving me a 0 percent rate for 12 months, up to 20,000 bucks or whatever. i've got a savings account yielding 5.05%. why not just pay the balance every month into the savings account, and pay the minimum toward the card each month, then in the 12th month pay it all off out of the savings?

 

I would think that so long as you did pay it off in full that final month there is nothing wrong with this plan. Just don't be late with that payment or you probably get hit with 12 months of accumulated interest for having a balance or something like that.

[The Irish Doggy]

normally i pay off the balance every month. but with this new amex, i got to thinking....they're giving me a 0 percent rate for 12 months, up to 20,000 bucks or whatever. i've got a savings account yielding 5.05%. why not just pay the balance every month into the savings account, and pay the minimum toward the card each month, then in the 12th month pay it all off out of the savings?

 

 

Sure, its like a 12 mo. same as cash deal, but even with the 5% knowledge, I bet it still stings that day you write a 20K check!

[myhousekey]

another vote for Amex blue cash.

[cdrudge]

 

Pretty much. Credit cards have done an amazing job of squeezing themselves between a vast majority of all transactions that go down, thereby skimming about 1% off almost all the money spent.

1%?!?!? What credit card processor has only a 1% fee? Back when my wife was a Longaberger Baskets "consultant" the online processor we used was something like 4% + $.40 fee. Even my company's "processor of choice" for our independently owned stores is something like 2.3%+$.25 fee per transaction and that is for the highest sales volume. I realize we aren't a Wal-Mart or Target of the world but I was under the impression that there weren't any processing fees THAT low.

[detlef]

1%?!?!? What credit card processor has only a 1% fee? Back when my wife was a Longaberger Baskets "consultant" the online processor we used was something like 4% + $.40 fee. Even my company's "processor of choice" for our independently owned stores is something like 2.3%+$.25 fee per transaction and that is for the highest sales volume. I realize we aren't a Wal-Mart or Target of the world but I was under the impression that there weren't any processing fees THAT low.

Well, that 1% takes into account the rewards they pay out to the user plus whatever costs they encounter associated with doing business. The more stories like yours that I hear, the more I'm amazed at the 1.8 that I pay.

[detlef]

Sure, its like a 12 mo. same as cash deal, but even with the 5% knowledge, I bet it still stings that day you write a 20K check!

That is some pretty naive logic. Tell you what, you pay me $1000 per month and I'll write you a check for $12K at the end of the year.

[The Irish Doggy]

That is some pretty naive logic. Tell you what, you pay me $1000 per month and I'll write you a check for $12K at the end of the year.

 

 

I guess you're just used to writing checks that large. Me, not so much.

[detlef]

I guess you're just used to writing checks that large. Me, not so much.

Well, in all fairness, running a business sort of does desensitize you to such things. Watching your bank account balance swing by 10s of thousands of dollars daily makes it so you don't really blink about writing big checks.

 

Building a place is even crazier. Write a few checks for 25K to 50K and you start getting used to it.

 

None the less, if Az can just keep funneling that money into an on-line account, it will be right there waiting for him when the time comes. Well that and the 5% he earned.