An Awesome Way To Save Money On Credit Card Purchases
It is the perfect Saturday evening for a night out. You step onto your balcony to the embrace of a cool summer night breeze. You’re caressing what was once an ice cold Avery Reverend* and are starting to feel that oh so good moonlit feeling! Any minute now you’re expecting some friends over for some pre-night out festivities.
Alright! Your first friend just messaged you. They’re outside waiting for you to open up the door. The party is about to get started! Excited, and slightly buzzed, you set your beer down next to your MacBook Pro that’s streaming some Top 40 and scurry over to the door. Unbeknownst to you, you’ve got a curious lurker strolling through the living room. Let’s call him Max. And Max loves to jump on tables and touch anything within reach. And it just so happens you left your beer sitting right next to your $1200 MacBook Pro…. You know what happens next! Night’s ruined and you’ve got an expensive mess on your hands.
We’ve all experienced expensive mistakes! That awful feeling, and those dreaded what if questions, that swoop over you are painful (to say the least) …the question now, is what are you going to do? The common lazy person will go on their phone, search for some MacBook Pro deals, pull out that credit card and done. They’ve just bought another MacBook Pro. Will, what if I tell you that there is a better way to make that same purchase, but you don’t have to pay interest or deplete your savings. What if you pause and consider this to save money on credit card purchasess…?
No Interest is The Best Interest
No interest financing? Yes, please! If you’re like me, that is a damn deal!
Think about it, you just had an expensive mistake, instead of paying all cash right away and hurting for two or three months or, worse yet, paying unnecessarily high interest. You can spread the payments out over 6 months, with no interest and it only requires a minimum of $99.
Let’s break this deal down:
You went on BestBuy and found a deal for a 13.3” MacBook Pro for $1149.99. It has all the bells and whistles as your last one: retina display, 128GB HDD hard drive, 8GB ram and on, and on.
You hit that checkout button and it tells you to put in your contact information and your credit card information. But if you look down just a little bit further, you see PayPal (see figure below). So, being the intelligent person you are, you pause and think…hmmm, I wonder what the difference is? Well here you go:
(First some quick assumptions: It is assumed your credit card has a middle of the line 17.00% APR and that you intend to pay back the equivalent of the purchase price on your credit card over 12-months. It is also assumed that you can afford a $206 payment a month in order to avoid a rollover of interest in order to take advantage of the PayPal Credit deal.)
|PayPal Credit (Or Equivalent)||Your Credit Card|
|Month 1||$206.33||OR||Month 1||$112.82|
|Month 2||$206.33||Month 2||$112.82|
|Month 3 thru 6||$206.33 (x4)||Month 3 thru 12||$112.82 (x10)|
If you do the math ($1353.84 – $1237.96) you get a difference of $115.88. That is $9.67 ($115.88/12 months) you’re giving away a month!
Let’s put this in Starbucks terms. You are giving away two, TWO, grande caramel Frappuccinos with whipped cream a month! That is just nonsense if you ask me.
The simple point is this: stop giving away money and take advantage of no interest deals. I advocate for PayPal Credit over others since it is a trusted website and you can use this deal multiple times over on virtually any purchase over $99 (most websites now have PayPal Credit as a purchase option). Of course, you can take advantage of in-store credit deals, where they offer you no interest for 12 months (or the like). But that deal is almost always limited to their store/website only, which means you’ll have to apply for credit cards everywhere you go. And that is just a hassle!
Now, of course, you have to have a serviceable credit score to take advantage of such credit deals. If you need some resources to work on your credit, then use this great resource to save money on credit card purchases.
Please let me know what you think in the comments below! And don’t hesitate to check out more awesome WalletGyde blog posts. They’re awesome, I promise!
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*(Seriously, beer enthusiasts, try it!)