The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: texastumbleweed on June 29, 2017, 08:50:04 AM
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Can someone help me out with the math here? I have two school bills, one for $6k and one for $11k, both accept credit cards but at a 3.5 and 3% fee. That seems incredibly steep and not worth the points, but just wondering if I am wrong on that score. I have the southwest visa which is 1:1 (already met the main points bit.) . My spouse could open another southwest card, but that still seems steep. I'm guessing I should just pay by check. Anyone better with points know the answer?
Thanks.
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If you receive 1 point per dollar spend, you basically pay 3.5ct or 3ct respectively per point using your Southwest Visa.
What are the points worth to you? Some pages claim a valuation range of 0.85 - 1.4ct per point, depending on the usage ( see e.g., http://loyaltylobby.com/2017/04/12/southwest-buy-gift-rapid-rewards-points-30-discount-promo-april-4-28-2017/).
Thus, rather not worthwhile with your current card. Promos and other things might change the picture.
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Your school may also accept western union or moneygram for no fee? In that case, those companies charge to cut their checks but I'm not sure how much. You could see how the math adds up.
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Unless you open a card to get a promo, I'd pay by check.
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Unless you open a card to get a promo, I'd pay by check.
Yep, this is the answer.