The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: jnw on March 02, 2019, 12:26:08 AM
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I need to spend $3000 in 90 days to get the $500 bonus -- easy peasy. I am just wondering since this particular card has 12 months interest free, should I just spend $5500 on it (credit limit) and carry the balance for 11 months then pay it off in full a couple weeks before deadline? This way I can get 2.2% interest on it from ally.com. About another $90-100 worth of money. I wouldn't buy anything on the card I wouldn't normally with cash.. my savings rate is about 65-70% each month.
Or will the carrying of the balance do too much psychological harm? lol.
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I wouldn't, but only because I despise debt. others would probably call it a no-brainer win. I just think of things that can happen while I have a bunch on a credit card--injury, job loss, lawsuit, medical emergency, etc. and it would be one more thing to worry about, for little gain.
I passed up this card myself because I just got a 1.5 percent cashback and $150 bonus Capital One card. Even though the Ink is a "better" deal, I just don't want a bunch of cards floating around.
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Hrm I have seven credit cards now all with zero balance :P
One thing I thought of though , is that by carrying the balance that puts me at a higher percentage utilization which will lower score a little.
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I've done this and can confirm your credit score will lower. Potentially by a lot depending on limits/utilization.
Also heads up saw an article about it, a lot of those rewards are taxable
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Last I checked, Chase doesn't report business cards on personal credit reports. You can max it out and it won't affect your credit score.