I will be making a rather large purchase in the next few weeks. I am expecting to pay around 10k. I have been budgeting this year in anticipation of this hit to my account and I have the money to cover it in full in my savings. Since I've never made a purchase this large before I have a couple questions about my options. I see them as:
1) Pay it in full with Cash
2) Charge it to my rewards credit card (credit limit is $27,000)
3) Accept a 0% Financing option offered by the seller and pay it off month to month (Will this negatively affect my credit? What are the downsides to this if I am on top of the payments?)
Now my questions for the above options:
In regards to #2. I've always had autopay set-up for the last 10 years+ never missing a payment or having a payment be late. If I were to charge it to my card what would happen if I chose to spread the payments out over the course of a few months? I assume I'd be paying a bit more interest but would it negatively affect my credit as much as option #3? Another thought is to put it all on my card and pay it off in full that month as one giant payment. Are either of these ideas good ones?
And in regards to #3 - if I were to finance this purchase at 0% it sounds like a better option than putting it on my card and spreading out the payments there with interest - but I am scared this option will destroy my credit (I read somewhere that a lot of places open a new credit card or a store card in order to do the 0% financing - is this true?) I have never financed anything before so a crash course would be appreciated. I am seeing mixed reviews online from my research.
And lastly #1 - It feels like the easiest option but also the silliest? Walking into a bank and pulling most of my savings out and then handing over an envelope feels like a thing from the movies- not real life. Do people actually do this for purchases of 10k?
Some more info: I live in the US. This is a sale (that I'd rather not disclose) from a retailer, not a private seller. This is not some craigslist transaction where I should be worried about scamming. I've been great at saving my entire life - budgeting my accounts with proper 401k, IRA, emergency fund and other long term savings accounts. I created this separate savings account just for this purchase in preparation for a big hit. All this being said - I do have a vacation planned in a few months (which I have also budgeted for) but that is why I am so tempted by the 0% financing option. Keeping all my money in my account and then paying it off month to month like any other bill with autopay sounds too good to be true. Help me reddit - you're my only hope.
TLDR: 10k purchase. I have the money. 3 options - pay in cash, pay with rewards credit card 27k limit (pay in full first month or spread out?), or finance through the store (0% for 12mo). Help me choose keeping in mind I don't want to take a big hit to my credit and the fact that I have a vacation planned in a few months.
Submitted July 03, 2018 at 06:55AM by icome4thecomments https://ift.tt/2KIgLzg
