Direct purchase credit card question

[TexasChick123]

3% is minor compared to what you save with resale, 40% or more.

Really?!?

 

[TexasChick123]

This is a thread to discuss how to use a credit card for direct purchases. Please keep your judgments about those who buy direct versus resale confined to other threads. This isn’t the place for it.

 

[KAT4DISNEY]

This is a thread to discuss how to use a credit card for direct purchases. Please keep your judgments about those who buy direct versus resale confined to other threads. This isn’t the place for it.

It's also easy to get caught up in getting certain rewards and not consider the real differences. Usually people are just attempting to help everyone sort thru the minutia of what can be done and what benefits can be achieve.

 

[KAT4DISNEY]

Thank you so much. I’ll be sticking with looking for a non-Disney resale.

There are 2057 resales for OKW that come up to. They are not priced anywhere like direct - usually can be found for something in the $10-$15 premium over a 2042 end date but dependent on the variables of the contract - size and points available.

Since the land lease was extended for OKW the only thing that DVC has to sell is 2057 end date as that is the date the entire resort ends. It's just that many owners have signed to turn their interests over to DVC in 2042 - ie, the 2042 expiration.

 

[Jennifer Bowers]

Any other input on what category the purchase came up as?
Already have 2 contracts resale and wanting to look into direct. Thank you everyone for the great feedback so far!

 

[TexasChick123]

Any other input on what category the purchase came up as?
Already have 2 contracts resale and wanting to look into direct. Thank you everyone for the great feedback so far!

“Travel” on my Chase Freedom.

 

[Jennifer Bowers]

Anyone use multiple cards for their purchase? Thinking about the possibility of earning more than one incentive by using 2 cards.....

 

[TexasChick123]

Anyone use multiple cards for their purchase? Thinking about the possibility of earning more than one incentive by using 2 cards.....

You can do this. I know because my guide asked me if I would be putting it all on a single card or using multiple cards. You can also charge one card, pay the balance, and then charge again a few days later, pay, charge, pay, etc. if your credit limit is not large enough for the whole purchase.

 

[RamblinWreck]

You can do this. I know because my guide asked me if I would be putting it all on a single card or using multiple cards. You can also charge one card, pay the balance, and then charge again a few days later, pay, charge, pay, etc. if your credit limit is not large enough for the whole purchase.

That's really good to know! You could swing a few thousand dollars worth of rewards this way if you played your cards right (no pun intended).

 

[RamblinWreck]

So does anyone happen to know how some of the different credit cards categorize DVC?

This could be very useful information for people on this board!

Is this something that I could find out by calling some of these Credit Card companies? I'm happy to do some of the legwork and analysis on how people could maximize CC rewards to reduce the hit of buying direct vs resale.

 

[RamblinWreck]

Really?!?

I just did the math, and I was shocked to find out he was right!

40% is in fact more than 13 times greater than 3%!

However, depending on how many credit cards you are willing to saddle yourself with, some will actually offer you more than 40% in bonus incentives.

For buying Christmas gifts just last year, I signed up for a cash back card that gave me 2% back on everything, as well as $200 back on my first $500 in purchases.

So if I budgeted $500 for Christmas gifts, I'd save 42% off the sticker price. Not bad.

If you could stack enough deals like this together, you could score a pretty nice price on the right direct purchase.

 

[kenyoncad]

If you could stack enough deals like this together, you could score a pretty nice price on the right direct purchase.

Hmmm... I did a quick search and found 7 cards with a total of $1550 of bonus cash offers with $10000 in spend requirement, 15% off direct if you can take the hit to your credit from opening 7 credit cards all at once.

Plus I didn't take into account the value of the reward points that would come along with the $10k spend.

 

[RamblinWreck]

Hmmm... I did a quick search and found 7 cards with a total of $1550 of bonus cash offers with $10000 in spend requirement, 15% off direct if you can take the hit to your credit from opening 7 credit cards all at once.

Plus I didn't take into account the value of the reward points that would come along with the $10k spend.

I did something similar!

I found 2 cards in particular that would help most on an absolute basis. This would minimize the number of cards you had to open. If you and your spouse both opened 2 cards, that's not too much of a credit hit.

Capital One Venture and Chase Sapphire Preferred. Both of them offer rewards in terms of points, but both allow those points to be used as credit to pay off your credit card statement at a 1:1 ratio.

If you signed up for 2 of each of those cards (1 of each for both you and your spouse) and used them to pay off $14,000 of a direct contract, you'd get $2,480 worth of rewards that could be used to pay off your CC statement. So you'd effectively be lowering your price by $2,480. This would pair very well with a purchase of 75 points direct, if you were buying direct just to get the perks.

There are also a bunch of relatively more piddly rewards you could receive from different cards.

Here's the list that I compiled of current offers. All of these cards either have no fee, or the fee is waived for the first year you have the card (make sure you remember to cancel those!)

Capital One Venture: Spend $3,000, get $560 back
Chase Sapphire Preferred: Spend $4,000, get $680 back
Capital One SavorOne: Spend $500 get $155 back
Capital One Savor: Spend $1,000 get $215 back
Chase Freedom: Spend $500 get $155 back
Wells Fargo Cash Wise Visa: Spend $1,000 get $215 back
Bank of America Travel Rewards: Spend $1,000 get $265 back


I have no idea what happens if you try to open multiple cards from the same CC company. What if I wanted a Capital One Venture, Capital One Savor, and Capital One SavorOne? Would that raise a bunch of red flags for them? Would they even allow it?

 

[TexasChick123]

Here is a link to an article everyone should read when looking at opening multiple credit cards:

https://thepointsguy.com/guide/ultimate-guide-chase-5-24-rule/

We did a lot of credit card switching over the last year, and this was a great article explaining what is and is not allowed. I hope it is helpful to a lot of you. Also, this guy has ton of articles explaining the ins and outs of all the cards. Warning: You will now spend hours researching credit cards to maximize rewards!

 

[crvetter]

I have no idea what happens if you try to open multiple cards from the same CC company. What if I wanted a Capital One Venture, Capital One Savor, and Capital One SavorOne? Would that raise a bunch of red flags for them? Would they even allow it?

Generally yes there are limits for how many sign-up bonuses you can get from the same issuer and how many cards they will approve you for, no matter the credit score.

There are some great threads on other sites that offer strategies for doing just this. I would look up "churning" of credit cards. You'll find a lot of good information and many people that have the number of cards that can be opened per issuer over a time period.

Edit: @TexasChick123 beat me to posting this. The article posted above is great information on Chase.

 

[Jennifer Bowers]

So does anyone happen to know how some of the different credit cards categorize DVC?

This could be very useful information for people on this board!

Is this something that I could find out by calling some of these Credit Card companies? I'm happy to do some of the legwork and analysis on how people could maximize CC rewards to reduce the hit of buying direct vs resale.

Exactly! It seems as though Chase categorizes DVC as travel but I wish I knew more. My thought process is if I could save around 1500 with credit card rewards on a 75 point direct purchase at OKW, I would be paying approx 136 per point for a direct contract that ends in 2057.... Not a bad option....Obviously buying resale would be cheaper (and I have purchased 2 in the past and sworn that I would NEVER buy direct).... but that blue card just calls to me!

 

[kmc8826]

For those interested the “Love Credit Cards so Much” on the Budget Board is a great place to start. Don’t hesitate to join in there...we are all about card churning and Disney. And there are quite a few DVC owners on there.

If you can get a business card for the DVC purchase you not only will get the rewards/sign up bonus but also not have it affect your personal credit card rating.

 

[zapple]

I put mine on my Amex Blue Business Plus, which gets 2 pts/$ for all purchases, but it did code as "Travel-Lodging." I would have gotten more points by putting it on my Sapphire or my Citi Premiere, but I have a 0% for 12 months deal on my BBP right now.

I also just paid my dues and it coded as travel as well. Probably should have put that on something other than the amex.

 

[kboo]

Here is a link to an article everyone should read when looking at opening multiple credit cards:

https://thepointsguy.com/guide/ultimate-guide-chase-5-24-rule/

We did a lot of credit card switching over the last year, and this was a great article explaining what is and is not allowed. I hope it is helpful to a lot of you. Also, this guy has ton of articles explaining the ins and outs of all the cards. Warning: You will now spend hours researching credit cards to maximize rewards!

I just spent an hour with The Points Guy doing research.

 

[striker1064]

I just spent an hour with The Points Guy doing research.

I might steer you instead toward Doctor of Credit's intensive credit card reference pages.