Payments by credit cards/Carlos Pueblo

 

Payments by credit cards/Carlos Pueblo

Recent unexpected activities of the house make several payments by credit cards. The plumber requires half of the payment in the front and the second half when the job is done. The credit card payment is very convenient for me to make such arrangement. The plumber gets his money in time, the bank makes a quick loan advanced and I pay the bank immediately. There are at least three transactions with some fee involved.

Amy makes her grocery shopping with the credit card payment and seldom uses cash. She has her own office to make all payments. We still use some traditional checks and internet banking to make payments. It is much safer than the traditional cash payments.

I also am used to get a short term cash loan from the credit card. The card bank offers 0% interest loan for a year or less with a 3% fee. I take advantage of such loan as my cash flow for different purposes. Early this year, I made two credit card loans for about $37,000 with 3% fee with a term of a year. I make a house loan to Michelle for 10 years with an interest to help her to purchase a rental house. I make payments every month for a year and rearrange funds to pay off the loans before the 0% interest term ends.

People know that you can make a new car purchase with the credit card. The dealer will allow you to pay up to a limit because of the fee involved. It is not wise to make the installment for the credit card debt because that the interest is too high. Even if I have a 0% interest loan from the credit card, it is still not a good deal because I pay the fee 3% up to the front and usually I pay the loan off much earlier than the term ends. The 3% fee is not an annual term actually if you calculate it. The bank is much smarter than us every way.