I'm planning on going to NYC for vaction in May, I am thinking of paying for it all on credit. Now I am trying to find out if I run my bill up to 2,000 and plan on paying it off for the rest of the year, what penalties am I going to face? Will it ruin or blemish my credit? I really have no idea on how this works. Please help, thanks!!
RE: Need some help...new to cr Penalties? How about interest! if you pay ontime, for the rest of the year, the credit card company will love you, you'll have given them about 20% of that $2000, or $400 in free money to them. You will have pretty good credit after you pay it all off Assuming you don't have any bad stuff now. no penalties, unless your late or dont pay it
Additional Points Two more things to consider: (1) You need a credit card with a limit of slightly more than $2000. Then, you can freely spend the $2000. Otherwise, you will violate your agreement and pay penalties for exceeding your limit. (2) You need an actual credit card like Visa or MasterCard, not a charge card like American Express. With a charge card, you have to pay off the whole balance the next month. With a credit card, you can choose to pay only a small amount each month and then pay interest on the rest.
RE: Additional Points ALSO...remember that car rental agencies, hotels, and pay-at-the-pump gas stations many times over-authorize the charge... JUST FOR POINT OF INFORMATION... If you have extra cards...you can pre-authorize with one card at check-in, and pay the final bill with a second card.
