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A12 BUSINESS
Thursday 27 July 2023

How a credit card strategy helped me

save over $1,100 on a home remodel

By CRAIG JOSEPH
of NerdWallet
The morning after the hurri-
cane hit Florida, I got a text
from my tenant.
“I have completely moved
out,” he wrote after the
storm last fall, wishing me
an abrupt “good luck” de-
spite having been there
over three years, with eight
months left on his lease.
The wind had just subsided,
windows were still boarded
up and my nerves were
frazzled.
The building was un-
scathed from the hurri- This Aug. 11, 2019 file photo shows Visa credit cards in New
cane, but a different storm Orleans.
had ravaged the apart- Associated Press
ment. Once inside, I found
pet damage to the doors the cash back and bonus earned me a total of $464
and walls, busted tile in would defray the cost. between the card’s bonus
the bathroom and broken That can be a powerful and ongoing cash back.
kitchen cabinets a list of combination when an un- A HIGH-YIELD SAVINGS
repairs that would exceed expected expense arises, ACCOUNT
the security deposit. according to Michael This next step only works if
My contractor quoted me Berkhahn, a certified finan- you already have the cash
around $9,500 to repair cial planner with Graham you need to cover your ex-
and update the whole Capital in Tampa, Florida. pense.
apartment, and I was for- “Using an interest free According to the St. Louis
tunate to have the neces- credit card provides the Federal Reserve, the na-
sary cash on hand. But he consumer the flexibility to tional average interest rate
also noted the job could not have to use their sav- on savings accounts has
take months to complete, ings up front,” he said in an increased by 600% since
which gave me time to email. May 2022 (1), making them
shop for deals on materi- To get the best credit a more attractive place to
als and figure out how to card offers, you’ll need at store cash.
put some cash back in my least good credit (credit I found an online bank
pocket. scores of 690 or higher). that offered a 4.8% annual
Here’s how I stacked a My credit qualified me for percentage yield. And in-
new credit card with a a cash-back card with an stead of immediately pay-
high-yield savings account 18-month 0% APR period ing off the credit card I’d
to save over $1,100 on the and a $200 bonus. Home charged for the remodel, I
remodel. improvement stores were deposited the $10,100 into
A TRIPLE-THREAT CREDIT an eligible bonus catego- that savings account.
CARD ry, and since the card was By simply making the
The first step was finding from the bank that holds card’s minimum monthly
a credit card that offered my retirement accounts, I payment of $96 over the
three things: a 0% intro- also qualified for a boost to 18-month 0% APR period
ductory interest rate, cash its reward rates. and then paying off the re-
back on purchases and a The project wrapped up mainder once that period
sign-up bonus. The 0% rate for a total price of $10,100, is over I will earn an esti-
would let me pay off the including materials and mated $693 in interest from
expense over time, while labor. Those expenses that savings account.q

La Quinta Beach Resort
Eagle beach
studio week # 30 room # 2317
1 Bedroom week 31 room # 106
Price studio : $ 4,500
Price 1 Br : $ 5 K
Call : 011-297-630-1307
Johnnypaesch@gmail.com
www.halleytimetravelaruba.online
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