I recently purchased some Ed Sheeran tickets through an American Express pre-sale. When I logged in to pay off my account, I had an offer I can’t refuse.
The offer on my Amex Hilton Honors card was for six months zero interest on new purchases. I love this type of offer!
To me, getting a 0% on purchases offer is like hitting the jackpot. Why? From a budgeting standpoint, I love to spread out large expenses over time rather than take from my savings account to pay in one lump. My money can continue to earn interest (or miles) in my savings account.
I already found the perfect use for this offer: my auto insurance. For my family’s policy, I can save $350 by paying it in one lump sum vs. paying it in monthly installments. Charging the lump sum on my Amex Hilton Honors card gives me the flexibility to pay a lower total amount spread out over 6 months. And that’s a win!
Interestingly, my husband owns the same card, and he did not get the 0% APR offer on his.
I also received a spending incentive award on the same card:
And then another incentive!
This isn’t the most compelling offer, since I value other miles and points more than I value Hilton Honors points. But, I went ahead and added the offer since I already knew I was going to charge my auto insurance. Extra points are extra points!
Word of Warning
With these 0% APR offers on new purchases, you have to be extremely disciplined. It’s certainly tempting to charge purchases that you wouldn’t normally be able to afford. Don’t do it! You MUST pay off your total balance within the promotional period. If you don’t, you end up paying interest accrued during the period on your remaining balance.
Now is the time of year when credit card companies usually start offering incentives to use their card on your big holiday spending. Keep an eye on your email for offers. I hope to receive more offers from other cards soon.
How does my family travel so much? We use miles and points from credit card bonuses. See my Travel Hacking 101 post as well as current credit card offers here.