For the first time in over a year I haven't paid my complete credit card balance. I have the money but I unexpectedly had to move. I ended up buying a small condo (better option all things considered) and had to keep as much money as possible in the bank as liquid assets for the mortgage approval. They seemed to rather I have cash on hand with debt than no debt and less cash.
I should be closing in a week and I know could pay off the card. But I now have to furnish my new home (nothing lavish, just getting the painting/DIY stuff done and essential furniture). So I'd just be putting more charges back on the card. Plus, as a new owner, I'd like to keep a few extra dollars in my pocket to beef up my emergency fund ASAP.
My friend suggested 0% credit cards and transferring balances so I can purchase new items at no interest. But I only have one card and always been that way. This month I was charged $25 in interest but I earned $31 in cash back rewards (I use the card for everything). If I keep earning more rewards than interest, does it make sense for me to look at other offers or worry about paying it all back at once? Obviously I'd pay more than the minimum. Even with new home expenses, I could have it all paid off in the next few months. I have stable employment so I'm not worried about that.
Which option(s) are OK?
A) Pay the balance in full
B) Pay it slowly and beef up emergency fund as long as interest is less than rewards
C) Look into a 0% card and transfer balance.
Added (1). Forgot to mention I already have a brand new car so I'm not worried about effects on my "credit". I don't think it should have to be pulled again (unless of course I decide to apply for a new card).
Read more: How would you handle this credit card situation?
