Got a new credit card today

[disneysteve]

I did something unexpected today. I got a new credit card. That was not on my to-do list for the day but they made me an offer I couldn't refuse.

My wife has been wanting a new vacuum cleaner. She did all the research, asked friends, read reviews, the whole bit, and finally decided to go look at the Dysons. Off we went to the mall. Our first stop was Sears where they had 4 different Dyson models. We did all the comparisons, used the QR reader on her phone to view the videos for each model, took some notes and moved on to Macys. They had most of the same models including the one we were most attracted to. Their prices were exactly the same as Sears. However, they were having an Election Day sale (I think Macys is always having a sale for some reason). Everything was 10% off which is significant when you're looking at a $500 vacuum cleaner. Then the saleswoman asked if we had a Macys card. My usual response to that is, "No thanks. Not interested." but I just said, "No" to see what she would tell us. She proceeded to say that today and tomorrow only, if we open an account, we would get 20% off our purchase.

So the $500 vacuum was on sale for $450 and then we got another $90 off for getting a Macys card bringing the total down to $360. I'm not typically in the habit of getting new CCs just to save on a one-time purchase, but there are times when it can be advantageous. My credit score is high enough (over 800) that the inquiry and new account is insignificant. And it was tough to pass up a $90 savings on something we were going to buy anyway.

[Caoineag]

I have to admit that unlike you I am in the habit of doing this for major purchases. It tends to save a lot of money if you are doing a big purchase and since I only open them up after I have chosen what to buy it doesn't change anything except the final price tag. I have never had it ding my credit that badly and I always pay the bill in full when it comes. Really, as long as you don't do it all the time, it makes good financial sense.

And if you are anything like me, you won't use it again and in two years when you go back to Macy's again, you can open another new one and get another 20% off, lol.

[Like2Plan]

Good job on the savings! Which model did you go with? Is it as good as you hoped?

[disneysteve]

I have to admit that unlike you I am in the habit of doing this for major purchases.

I've got no problem with that. We rarely make a "major" purchase that warrants doing this. Far too many people open a CC every time they make a $20 purchase just to save 10%. Not that saving $2 is a bad thing but I'm not sure its worth getting a credit card to do.

And if you are anything like me, you won't use it again and in two years when you go back to Macy's again, you can open another new one and get another 20% off, lol.

Exactly. Actually, before we made the transaction, I was trying to recall if I already had a Macys card. I think I may have at some time in the distant past, like when we got married and we were registered there, but I'm sure it has been 15+ years since we used it if we did have one.

[elessar78]

I think about doing that at times but have not had the opportunity to do so. Maybe if we buy furniture at a dept store at some point.

There are funny moments when, say, at Target our bill comes $100 and the cashier asks if I want to save ten percent by opening a charge card. But when you read the disclosure there's a late fee of $35-50 and an APR of like 16.99%. Um, no thanks.

But it is a great way to save on big purchases that you have to make. It's all a game and if you know how to play it then use it to your advantage.

If you have the cash for it, in some instances, then after you checkout at the cashier you can go to customer service and pay off your balance.

[creditcardfree]

There are funny moments when, say, at Target our bill comes $100 and the cashier asks if I want to save ten percent by opening a charge card. But when you read the disclosure there's a late fee of $35-50 and an APR of like 16.99%. Um, no thanks.

Target has a debit card that offers the same 5% discount. Therefore, no APR or late fee.

[disneysteve]

Iwhen you read the disclosure there's a late fee of $35-50 and an APR of like 16.99%. Um, no thanks.

The late fee and APR are irrelevant if you pay on time and don't carry a balance. If you can't manage to pay your bill on time and in full every month, you've got no business having a credit card.

I have no idea what the late fees and rates are on any of my cards. It is completely meaningless information to me.

[Like2Plan]

The late fee and APR are irrelevant if you pay on time and don't carry a balance. If you can't manage to pay your bill on time and in full every month, you've got no business having a credit card.

I, too got a new Macy's card this year for the discounts that were offered. One thing that I don't like is that it is such a rare occurance to charge anything on the Macy's card that I am not in tune with the billing cycles, yet. I made a purchase and then, sometime later I remembered the charge and no bill, yet! Yikes! Panic!
I was able to look my account up online and pay it. It wasn't late, I guess I must have made the purchase right at the beginning of the billing cycle and so it took a long time for the bill to actually come in the mail. If I use that card in the future, I think I will immediately go on line and pay it off.

[elessar78]

The late fee and APR are irrelevant if you pay on time and don't carry a balance. If you can't manage to pay your bill on time and in full every month, you've got no business having a credit card.

I have no idea what the late fees and rates are on any of my cards. It is completely meaningless information to me.

That's a good point. I haven't used a credit card close to a decade now.

[humandraydel]

Steve, I'm actually more surprised that you spent $500 on a vacuum than that you opened a CC to save $100. Are those expensive vacuums REALLY that much better? Nowadays I buy the $40 bagged vacuum...it works better than a $200 bagless vacuum I used to have.

[elessar78]

Yeah, give me your review DS too please. My wife is considering one but balking at the price. We got a higher rated Hoover (Consumer Reports) than a dyson but the wife doesn't like it either, because it's heavy to carry up and down stairs. Interesting solution would be to buy two of them one for upstairs and one for downstairs and still not cost as much as a Dyson

[disneysteve]

Steve, I'm actually more surprised that you spent $500 on a vacuum than that you opened a CC to save $100. Are those expensive vacuums REALLY that much better?

In a word, yes.

Both my wife and daughter have significant allergy issues. Both of them also have voluminous long hair. Cheap vacuums get clogged easily from the hair all over the house and they spew out as much dust as they collect which aggravates the allergy issues. If you want a vacuum with good suction and high-grade HEPA filters, you need to spend some money. A $50 Dirt Devil from WalMart just isn't worth buying at any price.

The Dyson (net cost $360) is replacing a 14-year-old Hoover Wind Tunnel which was a top-rated vacuum in 1998 when we bought it and we paid $340 for that, so I don't think $360 18 years later is bad at all.

[disneysteve]

We got a higher rated Hoover (Consumer Reports) than a dyson but the wife doesn't like it either, because it's heavy to carry up and down stairs.

Actually, one thing that DW already loves about the Dyson is how much lighter it is than our old Hoover. She can easily get it up and down the stairs. It was always my job to haul up the Hoover. She can do this one by herself.

[disneysteve]

One thing to add is that we didn't buy the cheapest Dyson model. Macys had one that was $400 so with 10% off on sale and 20% off with the CC, we could have gotten that one for $288. That would make it $52 less than we paid for our last vacuum 18 years ago.

[phantom]

I'm with you. I usually pass on opening store cards unless I'm spending a few hundred dollars. I actually opened my Macy's card to save money for my mom. She bought me a diamond and pearl necklace from Macy's to wear on my wedding day, and since she already had a card, we opened one in my name to save an extra 15%. Jewelry is one of those things that is usually excluded from their coupons but not from their card signup bonuses, so it was the perfect time to signup. My mom gave me the money for the necklace, and I paid off the card right away. I don't think I've used it since.