Author Topic: Big Expense and New Credit Card Churning Opportunity at the same time?!  (Read 1570 times)

whitedragon

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So, I have a big medical bill coming for due (about 10k), and I also am in the market for a new credit card to churn.  All the new credit cards allow you to do a 0% for X Months on a balance transfer, but I've never really considered that before since I've never had an opportunity to carry a large balance.

Now, I'm thinking to myself, why don't I use an older credit card to pay the medical bill (they take credit cards), then transfer the balance to the new card I'm churning, and enjoy a 0% loan to myself for a few months so my emergency fund doesn't take a 10,000 dollar hit all at once.

Am I crazy to even think this way?

Also, we just had a nasty hailstorm a few weeks back, and I'm having my Insurance install a brand new roof on my house, but my deductible is 1000 dollars, so this is all hitting at once basically, and it's making me freak out a little bit about completely depleting my emergency fund.

(Currently none of this impacts my ability to max out all my other tax advantaged space like 401k, IRA and HSA, but I did throttle back a little bit on extra investing into my taxable account this month).

So, to me it looks like my options are:

1) Pay it in full and forget about it, just build that emergency fund back up
2) Get a conventional loan and whatever
3) Churn a credit card and balance transfer
4) Whatever else I may be missing?

Shower me in face-punches please.

dandarc

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Usually there is a fee on the balance transfer.  Greater of $5 or 3% is pretty common.

dandarc

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I'd see if you can't find a new card with a big sign-up bonus and pay the bill with that.

Or if you like to fly domestically in the US, might be a good time to go for the Southwest deal - get 2 new cards, split the payment, and fly with your spouse dirt-cheap for year.

tonysemail

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Balance transfers usually do NOT count towards meeting the minimum spend for earning a sign up bonus.

ditheca

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0% on balance transfer isn't ideal; you'll get a 3% fee on the balance transfer before 0% kicks in.  It might cap around $500, read the fine print.

0% on purchases is a little more rare, but are sometimes available.  This would work for your plan.

I just put my wife's eye surgery on a new chase card and got four free flights and two free car rentals out of it.  You could split the $10k between 3-4 new cards and get up to $2000 worth in points/miles/cashback if you have great credit.


whitedragon

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0% on purchases is a little more rare, but are sometimes available.  This would work for your plan.

I didn't know these were even a thing, and I just did a search and got the Chase Slate!  Thanks for the idea, I never would have thought of that and their offer was 15 months 0% on all new purchases!  This is going to be a big help.

The travel stuff is pretty lucrative but we're not really big "travellers" at this point, we're more looking for cash back and all, so the miles and travel rewards aren't quite as good.  Plus, alot of the ones that are really good have annual fees.  I just did the Chase Sapphire Preferred a few months ago for another round of bills and their big sign-up bonus, and that was neat, but aside from that, it doesn't offer me much over a normal cash back cards I have.  Plus it has an annual fee.

Thanks for the great suggestions guys!