Large Purchase on Credit Card

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Topic Author
BeautifulDisaster
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Large Purchase on Credit Card

Post by BeautifulDisaster » Thu Jan 09, 2020 11:57 am

As one user put it:
I receive a dividend every day on the "investment" in my spouse's ring. Every once in a while there is a capital gain distribution when someone notices her ring and she smiles and shows it off.
Being said, I plan to purchase a ring from either Blue Nile or White Flash in the next two months. I know what the kind of ring she wants, I have the money already saved for it and this post is on the actual purchase of the ring.

Has anyone ever ordered from WF or BN and bought the ring on their credit cards for cash back or is this an insane thought?

My thought is to purchase the ring on the credit cards and immediately pay off the balance. Cash back is cash back, right?

I realize my credit would take a hit but I'm not looking to purchase a house or car in the next year or so...am i overlooking something?

Edit: Thanks for everyone's advice! One thing I did overlook was that by doing a wire transfer instead would save me more than what my credit card reward would offer
Last edited by BeautifulDisaster on Thu Jan 09, 2020 12:42 pm, edited 2 times in total.

niceguy7376
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Re: Large Purchase on Credit Card

Post by niceguy7376 » Thu Jan 09, 2020 12:03 pm

If those websites dont charge any extra for CC processing, then buy ring on CC and pay off the CC when it is due.

BuckyBadger
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Re: Large Purchase on Credit Card

Post by BuckyBadger » Thu Jan 09, 2020 12:04 pm

How else would you make a large online purchase without using a credit card? Of course you should use your credit card!

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ResearchMed
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Re: Large Purchase on Credit Card

Post by ResearchMed » Thu Jan 09, 2020 12:05 pm

BeautifulDisaster wrote:
Thu Jan 09, 2020 11:57 am
As one user put it:
I receive a dividend every day on the "investment" in my spouse's ring. Every once in a while there is a capital gain distribution when someone notices her ring and she smiles and shows it off.
Being said, I plan to purchase a ring from either Blue Nile or White Flash in the next two months. I know what the kind of ring she wants, I have the money already saved for it and this post is on the actual purchase of the ring.

Has anyone ever ordered from WF or BN and bought the ring on their credit cards for cash back or is this an insane thought?

My thought is to purchase the ring on the credit cards and immediately pay off the balance. Cash back is cash back, right?

I realize my credit would take a hit but I'm not looking to purchase a house or car in the next year or so...am i overlooking something?
Why is purchasing this item any different from other purchases where you get points, and immediately pay off the balance?

Indeed, for a purchase like this, I'd especially want the protections of a solid charge card company "just in case" it isn't all as it should be.

We try to purchase everything using charge cards that offer points/awards, and we've had some amazing travel.
(One of the best "values" is premium international air, and especially if one *would* have purchased Business class anyway. That's us, these days.)

Also, if you charge something and then immediately pay it off, is there actually any "hit" to one's credit?

RM
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Momus
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Re: Large Purchase on Credit Card

Post by Momus » Thu Jan 09, 2020 12:06 pm

Your credit score won't take a hit if you pay it off immediately or before it reports the balance you owe to credit bureau (statement date). You can max it out 100%, pay off asap, repeat multiple times before it reports. Get the cash back.

sailaway
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Re: Large Purchase on Credit Card

Post by sailaway » Thu Jan 09, 2020 12:11 pm

I would sign up for a new card with a big bonus.

We don't normally do this, since we have a hard time meeting the requirements with our normal spending, but with a big planned purchase it is perfect.

surfstar
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Re: Large Purchase on Credit Card

Post by surfstar » Thu Jan 09, 2020 12:14 pm

BeautifulDisaster wrote:
Thu Jan 09, 2020 11:57 am
As one user put it:
I receive a dividend every day on the "investment" in my spouse's ring. Every once in a while there is a capital gain distribution when someone notices her ring and she smiles and shows it off.
Being said, I plan to purchase a ring from either Blue Nile or White Flash in the next two months. I know what the kind of ring she wants, I have the money already saved for it and this post is on the actual purchase of the ring.

Has anyone ever ordered from WF or BN and bought the ring on their credit cards for cash back or is this an insane thought?

My thought is to purchase the ring on the credit cards and immediately pay off the balance. Cash back is cash back, right?

I realize my credit would take a hit but I'm not looking to purchase a house or car in the next year or so...am i overlooking something?
1.Yes CC for cashback is wise. (the affect on your credit score will be quite small, if any)
2. My wife feels completely opposite about shiny objects.

GT99
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Re: Large Purchase on Credit Card

Post by GT99 » Thu Jan 09, 2020 12:24 pm

If you're going to waste money on something that's value is purely a product of genius long term marketing and no real intrinsic value, you might as well get the credit card points.
I know I did. :twisted:

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anon_investor
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Re: Large Purchase on Credit Card

Post by anon_investor » Thu Jan 09, 2020 12:27 pm

Use CC to get the rewards points, pay off the balance before it is due and pay $0 in interest. This is what I did. The points were later used (with other accumulated points) to pay for 100% of our honeymoon airfare!

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RickBoglehead
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Re: Large Purchase on Credit Card

Post by RickBoglehead » Thu Jan 09, 2020 12:27 pm

While your credit score may dip due to more utilization of available credit, you mentioned a year or so regarding the house purchase. Your credit score will come back up in a few months, and the dip won't be much anyway.

I wouldn't pay a dime until it's due, and I would make the purchase the first day of the new billing period to make the bill due the furthest possible date. And use the card that provides both the best cashback combined with the best warranty, if applicable.

For what it's worth, I'm in the ecommerce space and I've never heard of Whiteflash.

Also, there are various shopping portals that may offer an incentive. Ebates (now Rakuten) provides 1% back. Some credit cards MAY have offers, check all of them.

Lastly, I'd recommend you really consider how much money you're spending on an engagement ring. Most spend way too much, being guilted into it by peers and the industry. I've been married for almost 40 years, and flashy jewelry doesn't do it. People that have to flaunt the size of a ring in front of others need more important things to focus on. Just one man's opinion, oh - and my wife's too.
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Stinky
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Re: Large Purchase on Credit Card

Post by Stinky » Thu Jan 09, 2020 12:31 pm

Pay it off before the statement cycle closes and it won’t be reported to agency.

If you have a Citi Double Cash card, you’ll get 2% back.
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Dottie57
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Re: Large Purchase on Credit Card

Post by Dottie57 » Thu Jan 09, 2020 12:34 pm

I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.

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ResearchMed
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Re: Large Purchase on Credit Card

Post by ResearchMed » Thu Jan 09, 2020 12:38 pm

Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
Excellent idea, especially if the large purchase is not something one usually purchases (fine jewelry).

I've very occasionally, in the past, had the clerk hand the phone to me and the charge card rep asked me some questions.
Or, there's a text message asking if X is something I indeed am purchasing.
Those are better than cancelling the order! :annoyed

RM
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Afty
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Re: Large Purchase on Credit Card

Post by Afty » Thu Jan 09, 2020 12:42 pm

There's no reason not to put it on your credit card. Wouldn't any effect on your credit score be temporary anyway, until you pay off the balance? Also paying via credit card gives you protection since you can dispute the charge if something goes wrong.

Blue Nile gives a 1.5% discount if you pay via wire transfer: https://www.bluenile.com/policies/us-payment-methods. But if you have a 2% cash back card, I'd go with the card.

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BeautifulDisaster
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Re: Large Purchase on Credit Card

Post by BeautifulDisaster » Thu Jan 09, 2020 12:45 pm

Afty wrote:
Thu Jan 09, 2020 12:42 pm
There's no reason not to put it on your credit card. Wouldn't any effect on your credit score be temporary anyway, until you pay off the balance? Also paying via credit card gives you protection since you can dispute the charge if something goes wrong.

Blue Nile gives a 1.5% discount if you pay via wire transfer: https://www.bluenile.com/policies/us-payment-methods. But if you have a 2% cash back card, I'd go with the card.
Great point, i just saw the same thing by playing around on both websites. Unfortunately, my CC doesn't offer 2% (5% on some things, 1% on "everything else"). Probably not worth opening a new cc.

runner3081
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Re: Large Purchase on Credit Card

Post by runner3081 » Thu Jan 09, 2020 12:46 pm

I have bought cars on credit cards in the past. Why not? Free money with rewards.

Don't worry about the credit score, not even something to consider in this situation. Shows up for a month or so and goes away.

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Re: Large Purchase on Credit Card

Post by Jack FFR1846 » Thu Jan 09, 2020 12:49 pm

Absolutely! If you live in New England, go into a Citizens Bank branch and get a 5% (until March 31) Master card and put the purchase on it. I have one and put my 2 son's spring semester college payments on it. 2.75% convenience fee? Who cares?!
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CAsage
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Re: Large Purchase on Credit Card

Post by CAsage » Thu Jan 09, 2020 2:17 pm

I did something very similar right before Christmas, bought a bauble from Blue Nile that darn near maxed out one credit card. Ahem. All in a good cause.... Afterwards, I did have some second thoughts. Unless you have some odd belief that mined diamonds are somehow mystically better than an ideal cut, good color, VS or better lab created diamond in a similar 14 or 18kt gold setting... I would seriously look into a lab created stone. Price is 1/3 to 1/2 of the mined diamond (again, the mystic aura here) and they cannot be told apart without a microscope (at best). Note I am NOT talking about cubic zirconia or moissanite or Diamond Nexus or any of what I really consider a "costume" quality diamond, but a physically equavalent stone. Check out Clean Origin, New World, Brilliant Earth, Pompeii Diamonds (look under Lab Diamonds), and there probably others. Go for the Ideal cut, good color, low inclusions... I certainly will for my next baubles.
But, no issue with maxing out the credit card, charged shortly after the prior closing date, will pay off before due. If you are at all worried, call customer service first.
And on Lab Diamonds - when I hear my friends say that they aren't "fine jewelry", I hear rumblings of the early days of index funds which weren't considered as good as an active manager. The same physical, refractive, molecular rock but cheaper.....
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decapod10
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Re: Large Purchase on Credit Card

Post by decapod10 » Thu Jan 09, 2020 2:31 pm

BeautifulDisaster wrote:
Thu Jan 09, 2020 12:45 pm
Afty wrote:
Thu Jan 09, 2020 12:42 pm
There's no reason not to put it on your credit card. Wouldn't any effect on your credit score be temporary anyway, until you pay off the balance? Also paying via credit card gives you protection since you can dispute the charge if something goes wrong.

Blue Nile gives a 1.5% discount if you pay via wire transfer: https://www.bluenile.com/policies/us-payment-methods. But if you have a 2% cash back card, I'd go with the card.
Great point, i just saw the same thing by playing around on both websites. Unfortunately, my CC doesn't offer 2% (5% on some things, 1% on "everything else"). Probably not worth opening a new cc.
If you clear a bonus like the Chase Sapphire Preferred 60k bonus (have to spend $4000), then that's worth about $750 or more before the $95 annual fee. Not sure if that's worth it or not, would be up to you.

Edit: plus you would also get the points for the purchase I think

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anon_investor
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Re: Large Purchase on Credit Card

Post by anon_investor » Thu Jan 09, 2020 2:35 pm

Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
Really? Did their fraud department try to call you first?

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Re: Large Purchase on Credit Card

Post by Jack FFR1846 » Thu Jan 09, 2020 2:45 pm

Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
That's why they call Bank of America "the evil empire". Just give the Sith Lord a call and he'll straighten things out......or will he?

So those 2 college payments I mentioned in my previous post. They totaled a bit under $10k. This was in the very first month I owned that Citizens card with a $13k limit. Went through smooth as butter.
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Supurdueper
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Re: Large Purchase on Credit Card

Post by Supurdueper » Thu Jan 09, 2020 2:56 pm

I purchased mine on blue Nile. The one drawback is getting the right size, mine was a tad too big and i had to send it back, so that cost extra.

As a bonus, don’t forget to go through the airline shopping portals to get miles as well as your cc cash back. If you’re going to drop a few Gs you might as well get almost a free one way ticket in case you get cold feet ;).

NJdad6
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Re: Large Purchase on Credit Card

Post by NJdad6 » Thu Jan 09, 2020 2:59 pm

Absolutely put on the card. You have additional warranty/loss protection and recourse if something goes wrong with the transaction. Probably won’t happen. I used Blue Nike in the past and they were great

Also CALL YOUR CREDIT CARD COMPANY and let them know you will be making this transaction. Make sure you are registered for alerts so if there is an issue you can resolve quickly.

UnLearnYourself
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Re: Large Purchase on Credit Card

Post by UnLearnYourself » Thu Jan 09, 2020 3:15 pm

BeautifulDisaster wrote:
Thu Jan 09, 2020 11:57 am
As one user put it:
I receive a dividend every day on the "investment" in my spouse's ring. Every once in a while there is a capital gain distribution when someone notices her ring and she smiles and shows it off.
Being said, I plan to purchase a ring from either Blue Nile or White Flash in the next two months. I know what the kind of ring she wants, I have the money already saved for it and this post is on the actual purchase of the ring.

Has anyone ever ordered from WF or BN and bought the ring on their credit cards for cash back or is this an insane thought?

My thought is to purchase the ring on the credit cards and immediately pay off the balance. Cash back is cash back, right?

I realize my credit would take a hit but I'm not looking to purchase a house or car in the next year or so...am i overlooking something?

Edit: Thanks for everyone's advice! One thing I did overlook was that by doing a wire transfer instead would save me more than what my credit card reward would offer
The impact to your credit is entirely negligible. That doesn't matter unless you carry very high balances at the time of applying for loans...and even then the hit is minimal if you make your payments on time, have a good length of credit history, and have a good mix of credit products on file.

Does using your CC make the ring more expensive? If not, use it and pay it off as you described. You're not missing anything. This is simple.

Katietsu
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Re: Large Purchase on Credit Card

Post by Katietsu » Thu Jan 09, 2020 3:22 pm

Jack FFR1846 wrote:
Thu Jan 09, 2020 2:45 pm
Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
That's why they call Bank of America "the evil empire". Just give the Sith Lord a call and he'll straighten things out......or will he?

So those 2 college payments I mentioned in my previous post. They totaled a bit under $10k. This was in the very first month I owned that Citizens card with a $13k limit. Went through smooth as butter.
Electronics, specifically computers and high end smartphones, and expensive jewelry are the times that I have had my credit card order flagged by the fraud department. I am guessing these items have a much higher probability for fraud than college tuition.

JohnFiscal
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Re: Large Purchase on Credit Card

Post by JohnFiscal » Thu Jan 09, 2020 3:30 pm

BeautifulDisaster wrote:
Thu Jan 09, 2020 11:57 am
As one user put it:
I receive a dividend every day on the "investment" in my spouse's ring. Every once in a while there is a capital gain distribution when someone notices her ring and she smiles and shows it off.
Being said, I plan to purchase a ring from either Blue Nile or White Flash in the next two months. I know what the kind of ring she wants, I have the money already saved for it and this post is on the actual purchase of the ring.

Has anyone ever ordered from WF or BN and bought the ring on their credit cards for cash back or is this an insane thought?

My thought is to purchase the ring on the credit cards and immediately pay off the balance. Cash back is cash back, right?

I realize my credit would take a hit but I'm not looking to purchase a house or car in the next year or so...am i overlooking something?

Edit: Thanks for everyone's advice! One thing I did overlook was that by doing a wire transfer instead would save me more than what my credit card reward would offer

I want to say that I have been a repeat client of Brian Gavin (co-owner of White Flash and now owner of Brian Gavin Diamonds) and worked with him in-person on some purchases when I lived in Houston. It was incredible working with him personally; I was getting a pair of custom diamond studs from him and he spent so much time with my wife and me showing several possible sets of diamonds for the studs. He was co-owner of WF then but later moved on to his solely-owned company Brian Gavin Diamonds (BGD) (www.briangavindiamonds.com).

I later bought a pair of princess cut diamond studs from BGD after I had moved to another state. I have no hesitation about working with either company and had no qualms selecting the second set of diamonds without viewing in person (although you can have them sent on approval). I also happily worked with WF after Brian's departure on a few pieces. BGD worked with me to find a lovely set of platinum stud settings, not the typical prongs. (I recall now that I also bought a diamond solitaire pendant from BGD about 3 years ago, again just over the phone, email, and website. So I've spent well over $10,000 with him)

I have no hesitation at all of recommending either White Flash or BGD, and would recommend them over Blue Nile.

In both cases I simply wired the money to them. I did use my ATT Mastercard when I bought wife's engagement solitaire at Tiffany. I wasn't even thinking at the time about how much of my CL that would eat up, but it made no difference as I pay in full every month. Just glad I had that much CL.

I would definitely compare the best of WF and, especially, BGD to the best of Tiffany (or even better). At a much lower price point.

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Re: Large Purchase on Credit Card

Post by Dottie57 » Thu Jan 09, 2020 5:17 pm

anon_investor wrote:
Thu Jan 09, 2020 2:35 pm
Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
Really? Did their fraud department try to call you first?
They did, but am living with my mom as she has cancer and needs help. I didn’t expect a problem since I buy quite often (monthly from the same company). I received an email fro BoA stating the order was canceled. I called BoA to tell them I was legitimately buying , had to go back to my home since my mom’s home siding prevents cell phone connections. It was a real rigamarole to get the order processed. The heck of it was that all of the accessories I ordered and extended warranty were processed just fine! Arg!

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anon_investor
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Re: Large Purchase on Credit Card

Post by anon_investor » Thu Jan 09, 2020 7:18 pm

Dottie57 wrote:
Thu Jan 09, 2020 5:17 pm
anon_investor wrote:
Thu Jan 09, 2020 2:35 pm
Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
Really? Did their fraud department try to call you first?
They did, but am living with my mom as she has cancer and needs help. I didn’t expect a problem since I buy quite often (monthly from the same company). I received an email fro BoA stating the order was canceled. I called BoA to tell them I was legitimately buying , had to go back to my home since my mom’s home siding prevents cell phone connections. It was a real rigamarole to get the order processed. The heck of it was that all of the accessories I ordered and extended warranty were processed just fine! Arg!
Sounds like you need a new CC company...

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Re: Large Purchase on Credit Card

Post by whodidntante » Thu Jan 09, 2020 7:20 pm

Stinky wrote:
Thu Jan 09, 2020 12:31 pm
Pay it off before the statement cycle closes and it won’t be reported to agency.

If you have a Citi Double Cash card, you’ll get 2% back.
The report date varies by issuer.

Dottie57
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Re: Large Purchase on Credit Card

Post by Dottie57 » Thu Jan 09, 2020 7:34 pm

anon_investor wrote:
Thu Jan 09, 2020 7:18 pm
Dottie57 wrote:
Thu Jan 09, 2020 5:17 pm
anon_investor wrote:
Thu Jan 09, 2020 2:35 pm
Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
Really? Did their fraud department try to call you first?
They did, but am living with my mom as she has cancer and needs help. I didn’t expect a problem since I buy quite often (monthly from the same company). I received an email fro BoA stating the order was canceled. I called BoA to tell them I was legitimately buying , had to go back to my home since my mom’s home siding prevents cell phone connections. It was a real rigamarole to get the order processed. The heck of it was that all of the accessories I ordered and extended warranty were processed just fine! Arg!
Sounds like you need a new CC company...
I hate to turn it in. It is by far my oldest CC.

fru-gal
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Re: Large Purchase on Credit Card

Post by fru-gal » Thu Jan 09, 2020 7:58 pm

ResearchMed wrote:
Thu Jan 09, 2020 12:38 pm
I've very occasionally, in the past, had the clerk hand the phone to me and the charge card rep asked me some questions.
I had this happen twice with my American Express card. I cancelled the card. For some strange reason, I object to discussing my financial situation in the middle of a store. No other company has ever done this, but then again I have never had a BofA card due to my I despise BofA policy.
Last edited by fru-gal on Thu Jan 09, 2020 8:10 pm, edited 1 time in total.

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ResearchMed
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Re: Large Purchase on Credit Card

Post by ResearchMed » Thu Jan 09, 2020 8:05 pm

Dottie57 wrote:
Thu Jan 09, 2020 7:34 pm
anon_investor wrote:
Thu Jan 09, 2020 7:18 pm
Dottie57 wrote:
Thu Jan 09, 2020 5:17 pm
anon_investor wrote:
Thu Jan 09, 2020 2:35 pm
Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. I’ve had the card for 12 years and since 1992 fro predecessors that were bought rolled into BoA.

It was a real mess to get the order fulfilled.

Call your credit card company to let them know of the charge BEFORE it is made.
Really? Did their fraud department try to call you first?
They did, but am living with my mom as she has cancer and needs help. I didn’t expect a problem since I buy quite often (monthly from the same company). I received an email fro BoA stating the order was canceled. I called BoA to tell them I was legitimately buying , had to go back to my home since my mom’s home siding prevents cell phone connections. It was a real rigamarole to get the order processed. The heck of it was that all of the accessories I ordered and extended warranty were processed just fine! Arg!
Sounds like you need a new CC company...
I hate to turn it in. It is by far my oldest CC.
If this "oldest card" is helping with your credit score (it may well be), then do *not* turn it in.
Keep it, and use it for a couple of small purchases a year to keep it active.
(Or is there a hefty AF?)

And get another card, one that might also give you a signing up bonus, and start using the other cards more.

RM
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ResearchMed
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Re: Large Purchase on Credit Card

Post by ResearchMed » Thu Jan 09, 2020 8:19 pm

fru-gal wrote:
Thu Jan 09, 2020 7:58 pm
ResearchMed wrote:
Thu Jan 09, 2020 12:38 pm
I've very occasionally, in the past, had the clerk hand the phone to me and the charge card rep asked me some questions.
I had this happen twice with my American Express card. I cancelled the card. For some strange reason, I object to discussing my financial situation in the middle of a store. No other company has ever done this.
There was no discussion of my financial situation.
They simply wanted to verify that it was indeed *me*.
This had happened a few times in the past, but not for quite some time now.

Once, ages ago, when this happened overseas in a country where one was required to keep one's passport with one at all times, Amex asked if I would allow the sales clerk to look at my passport and photo, and tell the Amex rep if I "matched" - for my protection. (And there were no other people near us, but if there had been, I probably would have asked if we could just move elsewhere for a few minutes.)
I had moved overseas for a year with two young children. They tend to outgrow clothing! We lived in a small village near the university. So halfway through the year, we all headed into the big city, and I bought them both just about all new clothing in larger sizes, from shoes to underwear, to coats, sweaters, etc. That was quite a "profile" of what I was buying.
Oh, and of course, I picked up a few items for myself, "just because" :wink:

The total amount was probably the largest single charged total ever, for me, at that time, perhaps other than airfare for the three of us.
And it was in a foreign country, in a store I had never been in before.
I realized what a major pain it would have been if Amex had instead just declined the charge or, worse, cancelled the card! :annoyed

RM
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vested1
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Re: Large Purchase on Credit Card

Post by vested1 » Fri Jan 10, 2020 6:44 am

Momus wrote:
Thu Jan 09, 2020 12:06 pm
Your credit score won't take a hit if you pay it off immediately or before it reports the balance you owe to credit bureau (statement date). You can max it out 100%, pay off asap, repeat multiple times before it reports. Get the cash back.
This is not always the case.

I charged a total of 52% of my credit limit in order to pay for moving expenses (moving company, hotels, restaurants etc) while I was driving from the west coast to the east coast and didn't want to trust hotel internet access with financial transactions. I always pay off the card every month. I paid off the balance of the card two weeks before it was due after having that 52% of the limit on the card for a little over a week during a billing cycle. My credit took a huge hit that I am still recovering from 4 months later. I went from mid 800's to mid 600's and am only back to high 700's currently. I have never been late on a bill. The credit bureau involved was Transunion, who was unmoved by my letter of complaint.

Related to the ding on my credit was when, at the same time, my other Visa credit card that I had for over 25 years which had been supplied by a credit union I had belonged to while working, was bought and all member's cards cancelled and replaced. This new replacement card showed no history of payment, and I had no warning that this was happening. The timing of that, as well as the 52% utilization on the other card (Visa Chase Southwest for airline rewards), which was also new, created what looked like unproven credit.

It may also be that, because I am retired and no longer employed, credit worthiness becomes more suspect. I also leased a new car right before moving, which required that I unlock my credit temporarily so that they could do a credit inquiry. The trifecta of what credit rating companies look at resulted in losing 200 points on my credit rating within one month. Transunion identified all three of these instances as the reason to degrade my score.

I would suggest avoiding large purchases on a credit card, even temporarily if the result is greater than 1/3 of your credit limit, especially if you have anything else going on.
Last edited by vested1 on Fri Jan 10, 2020 6:54 am, edited 1 time in total.

ponyboy
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Re: Large Purchase on Credit Card

Post by ponyboy » Fri Jan 10, 2020 6:50 am

I remember paying for the wifes ring with a credit card. Signed up for some united card to get the bonus rewards then used the points to take a flight to hawaii for our honeymoon. That was the start of my card churning...havent looked back since! And like a responsible boglehead, I paid the card off in full.

22twain
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Re: Large Purchase on Credit Card

Post by 22twain » Fri Jan 10, 2020 11:27 am

Dottie57 wrote:
Thu Jan 09, 2020 12:34 pm
I made a larger charge of $3.3k for a new computer. BoA put a hold on it and eventually cancelled the order. My credit limit is at 3 times the amount. [...]

Call your credit card company to let them know of the charge BEFORE it is made.
I’ll potentially be in the same situation sometime in the next couple of months. I just got an Apple Card, because I plan to buy a nice new 27” iMac for about $3K and figure I might as well take advantage of the 3% cash back.

I’ll try the “Message” option under the Apple Card in the Wallet app to contact (I assume) Goldman Sachs Bank before I go through with this. I’ll wait a few weeks so as to use the card and pay for a full billing cycle first.
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8foot7
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Re: Large Purchase on Credit Card

Post by 8foot7 » Fri Jan 10, 2020 11:53 am

I hope in this thread we're worried about more than putting $3k on a credit card. I just paid a six figure conference meeting bill on an American Express and no one batted an eye. If your purchase is sound, then there's no reason not to put it on a rewards card.

fru-gal
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Re: Large Purchase on Credit Card

Post by fru-gal » Mon Jan 13, 2020 4:05 pm

8foot7 wrote:
Fri Jan 10, 2020 11:53 am
I hope in this thread we're worried about more than putting $3k on a credit card. I just paid a six figure conference meeting bill on an American Express and no one batted an eye. If your purchase is sound, then there's no reason not to put it on a rewards card.
I think if you have a 6 figure credit limit you can probably buy pretty much anything with no problems :-) from AmEx.

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8foot7
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Re: Large Purchase on Credit Card

Post by 8foot7 » Tue Jan 14, 2020 9:27 am

fru-gal wrote:
Mon Jan 13, 2020 4:05 pm
8foot7 wrote:
Fri Jan 10, 2020 11:53 am
I hope in this thread we're worried about more than putting $3k on a credit card. I just paid a six figure conference meeting bill on an American Express and no one batted an eye. If your purchase is sound, then there's no reason not to put it on a rewards card.
I think if you have a 6 figure credit limit you can probably buy pretty much anything with no problems :-) from AmEx.
Well, to be fair, I am being reimbursed for the bill, but it is on my personal card. A small benefit of my job. I can't afford to buy anything that big on a credit card myself. :happy

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