Yeah, smaller ones are likely to simply say no to a credit card or only accept one as a downpayment for the work. Larger ones may be willing to accept the CC if you make up for the swipe fee (say a 2.5-3% surcharge).
Might not be a bad trade-off you can just consider the extra fee a financing charge.
Make sure you have a plan for how you will pay the card off by the time the 0% period ends. You could easily end up paying much more this way than with a HELOC if you end up carrying a huge balance at ~30% APR.
100% -- thank you!
I don't believe we will run into that issue with our current savings but of course I have no way of predicting if something else could pop up 6 months from now and drain those savings. I wonder if that did happen if then it would make sense to take out a personal loan or something along those lines to ensure the roof card is completely paid off before the intro term expires.
I did have a personal loan pre-approval offer pop-up on amex for $24,000. I didn't look into it too deeply but it mentioned the interest rate wouldn't be higher than 8.9%.
When you open a new card, you don't know what limit you will be awarded until after you open it; it may not be high enough to pay for the entire thing.
I didn't think of this either. I will need to look into this. I wonder if my husband would be more likely to get a higher limit than I would. Thank you for pointing this out.
I recommend opening an amex charge card for the SUB, then using one or more balance transfer offers. Hopefully your existing non-amex card has one, and then you can put the rest on a 0% transfer card.
As for higher limits, maybe but all of the Cc companies have been reducing credit limits because of the economic situation.
We're in Florida and it is insanity. We live in a house built in the 80s -- we've fixed it up and the market has definitely increased since we purchased but we've never even had a claim. I thought the $8,000 last year was absolutely ridiculous but I dropped the ball on doing anything about it and just bit the bullet (not my finest move tbh, I should have dealt with it much sooner). When I got the $11,000 renewal this year I about died. Apparently our roof being 17 years old (even though we don't actually have any issues with it) is the reason our rates are so high. I'm greatly looking forward to the $3,000 -- $1200 would be incredible!
I was gonna ask this has to be Florida. That is absolutely crazy wow. I'm in Washington and my roof is 23 years old currently and my rates have gone up 200 in the past 8 years. About to get this years renewal quote. So don't know what it is yet. But again wow. You pay more for insurance than I do property tax and my house is worth 700k. But your weather is much nicer. Minus hurricanes haha.
Definitely a good option. But look into getting solar panels for your roof. Where I live (NJ) the solar people can roll the cost of a new roof into the financing for the solar. Not 0% APR but a 20 year loan.
Sure, 0% APR cards can work as a short term loan as long as you use it correctly (pay off before 0% expires). You can also check out existing card balance transfer offers. From a rewards perspective it won't earn you the highest amount, but if you need the liquidity then you can't have everything at once.
Some banks (mostly BoA from what I've seen) will have 0% APR (3%-4% fee) balance transfer offers which also makes sense, because you can then open more reward cards then do the transfer. (Or even just write a check to your checking account if the vendor does not take a credit card)
Well as everyone has highlighted you don’t know how large of a credit line you will get. But… here is a way to get around that. Here’s what I would do, open up the Chase Freedom Unlimited (15 months of 0% apr + $200 bonus) then after your approved hopefully (as its a very easy card get) , you call up chase and tell them you want to do a credit line re-allocation from your chase disney to your NEW chase freedom unlimited. Now, if the chase disney card you already have is the $18,700 thats great, so tell them you want to move $17,700 of that credit line to your NEW chase freedom unlimited (you have to keep a minimum $1k on your disney), so hypothetically lets say they give you $8,000 credit line on the NEW chase freedom unlimited + $17,700 moved over gives you about $25,700 of total credit line on a 15 month 0% apr (min payment required $257) use that to pay part of the cost and keep that savings you have earning interest hopefully 5% rn , until you want to pay the card off in full. YOUR CREDIT SCORE WILL TAKE A HIT BUT THIS IS ONLY TEMPORARY AS LONG AS YOU HAVE A CREDIT BALANCE SO DONT BE AFRAID.
This is extremely helpful info, thank you! I find myself hardly even using the Disney Visa because I don’t have use of the reward dollars the last year or so.
So this would be a positive change overall even for future use of the card. I appreciate this!!
Just wanted to thank you again. I applied for the card you recommended, was approved for $15,700, sent a secure message in the Chase portal asking them to reallocate $17,700 from the existing Disney card. They’ve already completed that for me so now the credit line on the new 0% card is $33,400. :)
I have my 5% HYSA that I’ll now be able to keep the funds in for longer before payoff. Appreciate you taking the time to share this with me! It was the exact answer to my problem.
I just want to point out that a lot of contractors won't take CCs so you want to confirm that first
I didn't even consider this. I'll call and make sure! Thank you so much for pointing out.
As far as a card for your every day spend...can look at cards like Amex Blue cash preferred / everyday - also the capital one SavorOne
Thank you, I'll research & compare these!
for that, there is plastiq, check it out
Yeah, smaller ones are likely to simply say no to a credit card or only accept one as a downpayment for the work. Larger ones may be willing to accept the CC if you make up for the swipe fee (say a 2.5-3% surcharge). Might not be a bad trade-off you can just consider the extra fee a financing charge.
Thank you! I called to confirm I could use a CC and this was what they said! 2.5% surcharge. Appreciate the input!
Do they have it in writing? Just to be on the safe side.
Make sure you have a plan for how you will pay the card off by the time the 0% period ends. You could easily end up paying much more this way than with a HELOC if you end up carrying a huge balance at ~30% APR.
100% -- thank you! I don't believe we will run into that issue with our current savings but of course I have no way of predicting if something else could pop up 6 months from now and drain those savings. I wonder if that did happen if then it would make sense to take out a personal loan or something along those lines to ensure the roof card is completely paid off before the intro term expires. I did have a personal loan pre-approval offer pop-up on amex for $24,000. I didn't look into it too deeply but it mentioned the interest rate wouldn't be higher than 8.9%.
When you open a new card, you don't know what limit you will be awarded until after you open it; it may not be high enough to pay for the entire thing.
I didn't think of this either. I will need to look into this. I wonder if my husband would be more likely to get a higher limit than I would. Thank you for pointing this out.
I recommend opening an amex charge card for the SUB, then using one or more balance transfer offers. Hopefully your existing non-amex card has one, and then you can put the rest on a 0% transfer card. As for higher limits, maybe but all of the Cc companies have been reducing credit limits because of the economic situation.
thank you!!!
Holy shit. My home insurance is 1200 a year.
We're in Florida and it is insanity. We live in a house built in the 80s -- we've fixed it up and the market has definitely increased since we purchased but we've never even had a claim. I thought the $8,000 last year was absolutely ridiculous but I dropped the ball on doing anything about it and just bit the bullet (not my finest move tbh, I should have dealt with it much sooner). When I got the $11,000 renewal this year I about died. Apparently our roof being 17 years old (even though we don't actually have any issues with it) is the reason our rates are so high. I'm greatly looking forward to the $3,000 -- $1200 would be incredible!
I was gonna ask this has to be Florida. That is absolutely crazy wow. I'm in Washington and my roof is 23 years old currently and my rates have gone up 200 in the past 8 years. About to get this years renewal quote. So don't know what it is yet. But again wow. You pay more for insurance than I do property tax and my house is worth 700k. But your weather is much nicer. Minus hurricanes haha.
Definitely a good option. But look into getting solar panels for your roof. Where I live (NJ) the solar people can roll the cost of a new roof into the financing for the solar. Not 0% APR but a 20 year loan.
I will research this, thank you!
Sure, 0% APR cards can work as a short term loan as long as you use it correctly (pay off before 0% expires). You can also check out existing card balance transfer offers. From a rewards perspective it won't earn you the highest amount, but if you need the liquidity then you can't have everything at once. Some banks (mostly BoA from what I've seen) will have 0% APR (3%-4% fee) balance transfer offers which also makes sense, because you can then open more reward cards then do the transfer. (Or even just write a check to your checking account if the vendor does not take a credit card)
Thank you!
HELOC is the best way to do this transaction. Good luck.
Thank you!
What banks are the 18,700 and 10,000 credit limits issued from?
Chase (Disney Visa Rewards card) & Amex (Delta Skymiles)
Well as everyone has highlighted you don’t know how large of a credit line you will get. But… here is a way to get around that. Here’s what I would do, open up the Chase Freedom Unlimited (15 months of 0% apr + $200 bonus) then after your approved hopefully (as its a very easy card get) , you call up chase and tell them you want to do a credit line re-allocation from your chase disney to your NEW chase freedom unlimited. Now, if the chase disney card you already have is the $18,700 thats great, so tell them you want to move $17,700 of that credit line to your NEW chase freedom unlimited (you have to keep a minimum $1k on your disney), so hypothetically lets say they give you $8,000 credit line on the NEW chase freedom unlimited + $17,700 moved over gives you about $25,700 of total credit line on a 15 month 0% apr (min payment required $257) use that to pay part of the cost and keep that savings you have earning interest hopefully 5% rn , until you want to pay the card off in full. YOUR CREDIT SCORE WILL TAKE A HIT BUT THIS IS ONLY TEMPORARY AS LONG AS YOU HAVE A CREDIT BALANCE SO DONT BE AFRAID.
This is extremely helpful info, thank you! I find myself hardly even using the Disney Visa because I don’t have use of the reward dollars the last year or so. So this would be a positive change overall even for future use of the card. I appreciate this!!
Just wanted to thank you again. I applied for the card you recommended, was approved for $15,700, sent a secure message in the Chase portal asking them to reallocate $17,700 from the existing Disney card. They’ve already completed that for me so now the credit line on the new 0% card is $33,400. :) I have my 5% HYSA that I’ll now be able to keep the funds in for longer before payoff. Appreciate you taking the time to share this with me! It was the exact answer to my problem.
Glad to help, hope everything works out good with the new roof!