For a direct purchase how much can be placed on a credit card?

[Cfabar1]

Mine has always been weird….

So first of all, it appears to be six months from statement close, not from the purchase date.

Obviously if you don’t pay in full by that date, they will charge interest I would imagine, but it causes a strange lag where the payment date (which is usually a few days before the statement close date) shows an interest saving balance that may be true for the payment date, but you would end up with a lot of interest if you don’t pay it by the statement date. I find the interest saving balance line to almost be deceiving in that way.

As far as how they calculate interest - my understanding is that it is at 0% no interest, and that if you don’t pay it in full by that date, they will start assessing you interest. I don’t see any “deferred interest” charges listed on my account - which I think they would have to show if they’re going back to the beginning of the purchase to measure your interest. On other promotional cards I have had, it has been disclosed.

We primarily use this card for DVC and Cruises, you get the 2%, and then get 6 months to pay it off. We also transferred credit from another chase card so that we have a very luxurious available credit amount, and more than I would hope to ever use.

 

[jolynne28]

someone posted about the Wells Fargo Active Cash Credit Card. Its a compelling offer if u can get approved

Can you tell us more about this offer?

 

[OHIOVACATIONER]

Mine has always been weird….

So first of all, it appears to be six months from statement close, not from the purchase date.

Obviously if you don’t pay in full by that date, they will charge interest I would imagine, but it causes a strange lag where the payment date (which is usually a few days before the statement close date) shows an interest saving balance that may be true for the payment date, but you would end up with a lot of interest if you don’t pay it by the statement date. I find the interest saving balance line to almost be deceiving in that way.

As far as how they calculate interest - my understanding is that it is at 0% no interest, and that if you don’t pay it in full by that date, they will start assessing you interest. I don’t see any “deferred interest” charges listed on my account - which I think they would have to show if they’re going back to the beginning of the purchase to measure your interest. On other promotional cards I have had, it has been disclosed.

We primarily use this card for DVC and Cruises, you get the 2%, and then get 6 months to pay it off. We also transferred credit from another chase card so that we have a very luxurious available credit amount, and more than I would hope to ever use.

This is the message I am receiving but hopefully it is okay to pay off early. Thanks all for your advice.

 

[Cfabar1]

I always pay early and have yet to have any issues.

 

[achinforsomebacon]

We used multiple credit cards to pay for our entire direct purchase last year. Here are a few things we learned:

Not all guides are willing/able to spread out the payments for 90 days. The first guide we talked to had to "get approval" for everything, including spreading payments and even then would only do 60 days. We ended up going with a different guide for various reasons but he said 90 days was no problem when we first brought it up. I'm pretty sure the original guide had been around a long time so I would think he would be aware that it could go to 90 days.

If you split your purchase into multiple contracts, each one will be charged separately instead of one big charge. We were trying to take advantage of the first free My Chase Plan, but that only applies to one purchase. We didn't know this until we were already charged the deposits. Our guide got the charges reversed and put through on different cards based on our rewards strategy, but I wish we knew this from the start (first direct purchase).

We also opened a few 0% introductory cards to take advantage of 15-18 months with no interest. I spent way too much time analyzing which cards to get (trying to figure out the best rewards for this purchase and future use and also if an annual fee card was worth it to get higher rewards). We ended up just getting a few no fee cards that we thought we might use long term.

We have a few Chase cards and moved around the credit limits to align with our payoff strategy. This was a quick phone call and was effective immediately.

Overall, we got 15-24 months no interest on almost the entire purchase. Would have been the entire amount if we had planned ahead with the new cards (ran out of time before our use year started and we wanted the bonus prior year points).