Here's the scenario, I'm new to credit card and I'm a college student. I need to buy laptop for Fall Semester and my credit card limit is $800. The laptop that I want to buy is $700. If I purchase the laptop using my credit card, can I pay at least $50-$60 dollars a week? or let's say, I'll pay $20 a day, would that work? Plus, I will also pay the bill the issued bill for my credit card at the end of the month. Will that work?
- Yes, you can pay $50-$60/week
- Sure, pay $20/day if you wish (but confirm that the terms of service permit such frequent payments)
- And then make sure you still pay the minimum when the bill comes in. Payments made before the bill is cut may not actually count as 'paying the minimum'. e.g. you pay an extra $25 on the 15th, but the bill is cut on the 16th. Something must be paid between the time the bill is cut and before before it's due, unless the bill shows zero balance.
Let's run something quickly...
You have a $700 laptop. You want to pay $20 per day to the credit card company?
In theory, it would take 35 days, no interest to pay off that computer. But the credit card is likely accruing interest as well, correct? That's still going to be more than the orginal $700.
Honestly, it's only 35 days. Get a jar, and force yourself to put in $20 every day. If you're paying for everything in cash (like I do), you can also add your change in there, and have your $700 before the 35 days, and still be paying no interest.
If you are looking at buying with a credit card because it's online, or because you get buyer protection, then go and buy the computer, then pay at least that portion of the bill the very next day. Then, start with your next rainy day fund.
JoeTaxpayer has it right.
To say it another way, most credit cards (I've never seen one that didn't) allow you to make a manual payment whenever you want.
If there is no payment due at the time, it will not count as satisfying any minimum payment requirement that comes due every month.
you can send the credit card company as many payments as you want in a month. They'll take 'em.
Just realize though...that if you pay three payments THIS month, and there's still a balance left over into next month, you STILL have to make a payment next month.
Chances are, your minimum monthly payment on $700 will be something like $25.
Since this site aim to help handle your "personal finance & MONEY " I will shortly answer your question and then continue with another aspect : yes you probably can.
Just make sure that you are allowed to make such frequent payments as @JoeTaxpayer mentionned, but based on my personal experience it should not be a problem.
Should you do it ?
Honestly, it seems to me that you are doing a bad investment.
I need to buy laptop for Fall Semester
You did not tell us when does the fall semester starts but if there is still times before, just wait to have the money. I have the feeling that "I need to buy laptop" in your sentence actually hide a "I'd like to buy a new laptop because that would motivate me".
What I'm trying to point is that I don't think you really need a laptop at the point to use your credit card for it and risk high interests rates (19% ?).
What if your plan does not go as it was initially intended to and you ends up paying this bill for a couple of months because you lost your student jobs etc. ?
I studied computer sciences and did not even had a laptop of my whole studies, I used only school's computers. I have no idea what is your field of study, but I'm pretty sure you can wait to really have the money before buying that laptop and avoid the risks.