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minnesotakent

What's the best way to finance a $7,000 purchase without paying interest?

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Here's my financial situation. My credit score is in the low 800's. I have a PenFed Visa card with a $28,000 limit, a Capital One Savor card with a $30,000 limit, a Costco Visa with a $8,500 limit, a Capital One Venture card with a $34,000 limit and $10,000 limit store cards from both Amazon and Walmart. I pay off my credit cards in full every month. I also have a car loan of about $5,000 with PenFed.

 

I would like to make a major purchase of about $7,000 that I won't be able to pay off until the end of the year. I want to find a way to pay either no interest or very little interest.

 

My options:

Should I take out a personal loan with PenFed and make the minimum monthly payments until I can pay the loan off completely in about 10 months?

or

Should I get another credit card that has a 0% introductory rate and then just pay it off in full 10 months? Maybe I could get a card with a strong sign-up bonus and actually come out ahead in the long run.

 

I am going to be buying a house this summer and I don't want to damage my credit score too much because I want the best mortgage possible.

 

Which option is better as far as not damaging my credit score too much?

What would you recommend?

 

 

 

 

Edited by minnesotakent

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intro rate on a new card makes sense but why can't you PIF sooner? what do you plan to use as reserves when you apply for a mortgage>?

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My finances are good now, but they should be even better within a year. I am going through a divorce and have everything budgeted just right and am fiscally prepared for life after the divorce and for getting a new mortgage. 

 

The $7,000 is for an unexpected opportunity. I have been on the waiting list for over 20 years to get season tickets to a very popular sports team. This year I made it to the top of the list and have the opportunity to get tickets. I will have no problem selling the tickets and expect to make a decent profit. It's the initial investment of $7,000 that could throw my budget out of whack. Most years the $7,000 wouldn't be a concern, but this year is different than most years.

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A lot of banks will let you do BT's to your checking account. I know Chase, Citi and Discover will do this. Usually around 12 months, 0% interest, with a 2 or 3% BT fee. You should check your existing accounts for these offers.

 

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WF has a $300 SUB, $0AF, 0% for 12 months with 1% cash back. You would net $370 with~11 months float (assuming they give you >7k limit).

 

The SUB only works if you haven't milked them in the last 16 months.

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My neighbor cash flowed a $5000 expense by working part time at the Flying J truck stop.

 

Other than that, like others have said, see what offers are available with your existing cards.

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If PayPal is an option, they often have a six or twelve month no-interest (and occasionally no-payment) option when you use PayPal Credit.  The other advantage to them is they often do not report to the bureaus (or at least I have not seen them report when I have used it). 

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See if your Venture has the 0% for 12 months with the 3% fee and open a 360 account which pays .85%. Transfer the $7000 to the 360 and pay monthly from that account. With a 34k limit your scores won’t take much of a hit.

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Have you and your STBX already exchanged your property lists and agreed to a property settlement? If you get those Twins or Vikings season tickets and your STBX finds out she may want them if anything to resell them on the ticket exchange sites.

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1 hour ago, cv91915 said:

I just got an offer in the mail for BBVA Clearpoints Visa.  $100 SUB (after spending $1,500) and 0% APR for 13 months.

 

https://www.bbvacompass.com/credit-cards.html

 

4% BT fee, so net cost of $280-100=$180 for 13 months of float.

 

It looks like the offer is available on more than one card.

0%/13 months APR also applies to purchases. So skip the BT, net $100 +10500 rewards points with ~12month float.

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