This month I have to pay RM3000 and it is somewhat unexpected.

I was given a choice to either pay cash or pay by credit card. I have no problem paying cash upfront RM3000 and I wouldn't have any financial difficulty after that as I have saving.s But I just feel a bit heartache to be parting away with RM3000 and leaving a dent in my saving.

I am actually thinking of paying with credit card and repay back in 2 months (RM1500) each month. However, I'm worried that it will ruin my credit reputation. I have been paying my credit card every month diligently even before the due date and I pay in full; sometimes more. Plus I don't know how the interest rate works out. I'm using a PB Classic Visa card btw.

If you were in my shoes, which will you choose? Pay cash or pay with credit card?

Suggestions?

This post has been edited by crabbypatty: Jul 16 2012, 10:15 PM

bank will love u if u not pay full....but u must pay la...becoz they get lots of interest from u...they will love u as long as u keep paying them..haha

I dont think missing one payment will make a HUGE impact on ur credit rating since you said you have been paying diligently

Hmm, I don't know how the interest rate works. If the interest rate is just around RM50 for the second month, sure enough, I don't mind. At least I have more cash in hand just in case I have emergency.

if not mistaken some bank will charge 10 to 12% interest if late payment...not sure which bank...

i'm not sure what you have to pay for but if you charge 3k to your card, you can make it into monthly installment with interest

check out different's bank monthly installment's interest with the respective bank

As long as you make the minimum payment each month ON TIME, your credit rating is still good .

I suggest you pay by cash then if anything comes up use your credit card to pay

Its medical bill and insurance does not cover so I have to fork out. Maybe I'll call up the bank and enquire about the monthly installment.

I dont see the point in delaying payment and incurring extra interest.

Assuming that your savings is in liquid form (not FD or in assets), no matter how you look at it your credit card interest will be higher than your savings rate.

I'd say just bite the bullet and pay it off, you will have to pay for it eventually. Better sooner than later

Is RM3000 a big part of your savings? If you plan to leave it in the bank and delay credit card payment, its not worth it, unless its 0% interest repayment plan. Else, it just don't make sense.

If u worry u need the 3k for emergency, you can use the credit card to pay if u hv any emergency.

I agree with psces88. There's no need to "lock in" the loss now (interest paid), when you only possibly, maybe, need the money in the future. It's just a hypothetical, which would probably not occur.

And if you really need cash later, you can always make a "cash withdrawal" using your credit card. That will incur a 2% fee when you make the withdrawal, plus (if you don't pay in full when the credit card statement comes at the end of the month) any interest due later.

The interest rate is listed as "current finance rate" in my statement (citibank). Should be in your's too. Mine says 17.5% pa now. IIRC, it sometimes goes as high as 2% per month in the past, which is about 27% pa (per year). Your savings account may pay 2% pa, if you're lucky.

http://www.pbebank.com/en/en_content/perso...tes/srates.html

public bank interest rates now is from 0% to 1.2% pa. That is not a typo, or a rounding error. They are paying 0% if you have a low balance in your account!

Big part not really. Just that I have not parted with that amount of cash before. A bit heartache really.

It's just that I figured that my working allowance is sufficient to cover for the interest. That's why I was thinking of paying with CC

if memory served correctly, you will be charge roughly 2% interest of the outstanding amount.

eg: In month A, total amount is rm3k, you pay rm1.5k then o/s is another rm1.5k.

So in month B, bill is rm1.5k + (any additional expense you use) + (total amount*2%)

And if you pay the minimum charge every month, your credit rating wont be affected. in fact if you pay full amount every month, you are using the bank credit facility for "free" since they don't get any interest from you.

This post has been edited by min402: Jul 18 2012, 03:44 PM

it will not your credit reputation if you did not settle your outstanding balance fully

it will only hurt if you failed to pay the minimum amount

also, sometimes it's good to take some small loan and pay back promptly, it will certainly helps in the future if you need to get a bigger loan

put it this way, will you lend money to someone who have good history of paying back his loans on time, or lend to someone that never pinjam money before?

just pay in full since you can afford to do that. Not worth to pay extra interest. It makes no difference you pay this month in full or delay till next month by half now and half a mth later

Peh...3k only. Pay installment 3 mths la..0 interest summore. If rm30k then pay 1 time feel sadding understand la.

Well I did the same thing couple of mth before. But in my case I had to use 5k.
first month I paid 2.5k
the the following month was 2.5k + (Interest of 3%=75)+ My current Expenses.They only charged interest for the outstanding by the way.

P/s: Banks Make Money when you pay late, because then only they can charge you interest.

Check with you bank for the interest rate and charges.

Hope this helps. Have a nice day.

can switch into flexi playment? i did that last year...

but if u got purpose with the 3K, u can go for it..

if not, just pay and dont waste money on interest...

pay with card got point system?

chrometophobia