sbeefyk1 wrote:
There's a difference between having cash and using credit.
I suspect most people have the cash to pay $2,000 at any one time. But they prefer to use credit because with rates so low (unless I guess your credit card has a 20% rate) it's smarter to use credit for $2,000 today and invest the $2,000 cash and pay off the $2,000 later.
Oooh, I bet they don't. I make pretty good money, and my cash reserves are fairly low. (A lot of my savings are tied up in my 401k.)
It would take a pretty low credit card rate to justify the move you suggest. I have one - a Capital One card - with a current 6.5 percent rate that I am paying off slowly, because the market is growing faster than that right now. Otherwise, all my cards are at least in the 10-20-plus range, and I have an approximately 800 credit score.