Worth it to pay via CC to get points if it costs extra 3%?

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amother

Wed, Jul 03 2024, 5:09 pm

I have an opportunity to put day camp this year on my credit card, but they'll charge me an extra 3%...

But I earn double miles, so is it worth it?

Here are the numbers:
Option1: $5200 cash, 0 credit card points
Option 2: $5356 on cc, 10,712 cc points

I'd love some rationale for either way.

TYSM

amother

Hibiscus

Wed, Jul 03 2024, 5:19 pm

It's never worth getting points if youre going into debt to do so. And you have to pay the extra 3% on top of that. Not a good idea.

amother

DarkPurple

Wed, Jul 03 2024, 5:24 pm

amother Hibiscus wrote:

It's never worth getting points if youre going into debt to do so. And you have to pay the extra 3% on top of that. Not a good idea.

It doesn’t sound like op plans to just leave the amount due on her credit card and not pay it. Most people use credit cards and pay them off each month so they don’t accrue any interest.

Op, what bank issues the card? Points are worth different amounts from different banks.

amother

Canary

Wed, Jul 03 2024, 5:30 pm

Is the cash value of the points more than $156?

amother

Green

Wed, Jul 03 2024, 5:31 pm

Really depends on the points. For delta miles or Marriott points, I probably wouldn’t do it. For United, chase or Amex I absolutely would.

If it we’re me I’d actually open a new card to use so I can get the signup bonus

amother

Cyclamen

Wed, Jul 03 2024, 6:06 pm

No. The points are worth only around 1 cent per point. You are getting 2% cash back but paying 3%. A better idea is to spend a new card with an account opening bonus, such as the chase sapphire card or business ink card for 75,000- 100,000 points bonus for opening the account and spending 4k-6k depending on the card. That will result in you getting $850 - $1100 back.

Do this only if you are financially disciplined and will pay it off immediately. Otherwise many people get into trouble and start paying steep interest that is way more than the account opening bonus. It also takes time to receive the card so the camp would have to give you a week or two to make payment.

amother

Wed, Jul 03 2024, 6:22 pm

I always pay my cards off on time each month.
It's a jetblue card (I live OOT and use Jet Blue at least once/yr to visit family)

I have so many credit cards, I don't really want to open another one. I opened this in Sept to get 70k bonus points.

Now...does that change anything?

amother

DarkKhaki

Wed, Jul 03 2024, 6:55 pm

I make a deal with my school to pay lump sum in the credit card if they agree to waive the fee. They always do. Worth asking them

wtvr

Wed, Jul 03 2024, 7:01 pm

It's almost never worth paying the CC fee in exchange for points, unless it's to earn a sign up bonus.
Think about it...how much is 10,000 points on Jet blue worth? What price ticket can you get with it? Is it worth more than a $156?

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