Goawayrain
Dryer sheet aficionado
- Joined
- Oct 31, 2016
- Messages
- 26
Would like to get feedback on this idea. I am considering paying our property taxes with a credit card with an interest free grace period. Our property taxes are fairly significant and I would like to find some ways to turn lemons into lemonade. Here is what I'm thinking:
Assumed property taxes - $10k
The county's fee for paying with a credit card is 2.35%, so $235.
Pay with a new AmEx Magnet card which charges no interest for 15 months. The card provides 1.5% cash back plus pays a total of $250 in spend bonuses in the first year, so there would be $400 in bonuses. The card has no annual fee.
I would take the cash I would have used to pay the taxes this year and invest in a 12 month cd. Current rates are 2.55% at Barclays, so interest would be $255 in 12 months. After the cd matures, funds would be used to pay the credit card bill.
Net benefit then would be $400 + $255 - $235 = $420.
The cons I see are (a) the hassle of taking out the cd and paying everything in 12 months), (b) presumably a lower credit limit while carrying the balance
Am I missing something? I assume there might be other credit cards and/or cd's that make this a better opportunity but want to make sure I'm not missing something painfully obvious. Thanks!
Assumed property taxes - $10k
The county's fee for paying with a credit card is 2.35%, so $235.
Pay with a new AmEx Magnet card which charges no interest for 15 months. The card provides 1.5% cash back plus pays a total of $250 in spend bonuses in the first year, so there would be $400 in bonuses. The card has no annual fee.
I would take the cash I would have used to pay the taxes this year and invest in a 12 month cd. Current rates are 2.55% at Barclays, so interest would be $255 in 12 months. After the cd matures, funds would be used to pay the credit card bill.
Net benefit then would be $400 + $255 - $235 = $420.
The cons I see are (a) the hassle of taking out the cd and paying everything in 12 months), (b) presumably a lower credit limit while carrying the balance
Am I missing something? I assume there might be other credit cards and/or cd's that make this a better opportunity but want to make sure I'm not missing something painfully obvious. Thanks!