Which would you do? (credit card question)

[GPC0321]

I'm preparing to purchase two $500 Disney gift cards from Sam's very soon. I've always planned to use my Chase Freedom card to do this, so I can get that extra 5% back on the purchase.

However! I've recently gotten a Freedom Unlimited, and it has 0% APR until January 2018.

This purchase, while not huge, is still a significant one for me all at once, and the prospect of being able to pay that $950 off in monthly installments spread out over the next year is very attractive.

But then I think, I'll use the Freedom, get almost another $50 off, and just pay myself back over the course of the year (I'm depleting a little of my savings...which was specifically saved for the Disney trip...to do this).

Am I overthinking it? LOL.

Which would you guys do and why?

 

[PerfessorZ]

I'm preparing to purchase two $500 Disney gift cards from Sam's very soon. I've always planned to use my Chase Freedom card to do this, so I can get that extra 5% back on the purchase.

However! I've recently gotten a Freedom Unlimited, and it has 0% APR until January 2018.

This purchase, while not huge, is still a significant one for me all at once, and the prospect of being able to pay that $950 off in monthly installments spread out over the next year is very attractive.

But then I think, I'll use the Freedom, get almost another $50 off, and just pay myself back over the course of the year (I'm depleting a little of my savings...which was specifically saved for the Disney trip...to do this).

Am I overthinking it? LOL.

Which would you guys do and why?

I'm guessing your savings is probably earning in the neighborhood of 1% at best. So it would take you nearly 5 years for that $1,000 to make the $50 it will make you using your Freedom card. So from a dollars and cents view, the best play is to use your Freedom, then pay yourself back over the year.

 

[Jen and Ashwin]

If the savings was specifically earmarked for your Disney trip rather than say, taking from your emergency fund, then I would put it on the Freedom card and not feel bad about it. You are making a better financial choice by saving the extra $50.

 

[LJSquishy]

I would use the card that will earn you 5% back. I would never choose to carry a balance (even interest free) on something that wasn't an emergency or much needed item such as a refrigerator. Since you have the money to buy the gift cards outright it makes sense to do it that way and be done with it without going into debt for a Disney vacation. Vacations are not worth going into debt for, even if you "can" pay it off! Paying now will make you feel like it's all taken care of and you won't need to hassle with payments.

 

[wendow]

I agree with everyone else. Since the money is already earmarked for Disney, why not save $50 more by using the Freedom?

 

[Albort]

If you can pay off the $1000 balance on the Freedom, do the Freedom @ 5%. if not, go the 1.5x CFU.

 

[GPC0321]

Thanks everyone! I'll go ahead and use the Freedom.
I've only recently accumulated enough savings to even be considered an Emergency Fund, and this will cut it nearly in half (not quite), but it should get replenished fairly quickly thanks to my Christmas bonus, a (slight) raise in 2017, and some things I'll be selling on eBay this summer.
I used to spend money with no problem before I actually managed to SAVE some, and now I don't want to let it go! And as I mentioned in another thread, I'm worried about if/when Chase Freedom will have the wholesale store category next year, so I'm thinking I better go ahead just in case.

 

[TinyTGO]

I just want to thank everyone for this post. I just loaded up on Disney gift cards from Sam's. Great deal!!!

 

[TinyTGO]

Quick note... Chase Freedom caps the 5% bonus at $1,500 in purchases... so no more than $75 in cash or points per card.