Monday, August 24, 2015

Do You Know Someone Moving? Make Sure They Get a Discover Card

I know a family who is in the process of moving homes.  They were in need of appliances and called me.  They asked me for a card which has a promotional 0% APR for a while.  I never keep a credit card balance since that ruins any benefits of credit cards so I didn't know the information offhand other than the Chase Slate.

I quickly looked up Discover, hoping they would have a 0% APR and found that it did for the first 12 months.  We were in business since I knew I would be able to save them a ton of money.

They already had purchases lined up which came out to about $4,000.  I asked them to look at the Sears website and pick out what they wanted and let me know the price including tax, which came out to about $5,000.

I told them that I thought 2 Discover cards (1 for each of them) would be the way to go because of Discover Deals and the Discover Double Promotion where all of your earnings for the year are doubled after your 13th statement.

This is how it worked (or at least should have worked):

1) I referred one of the members of the family - $50 for each of us.  $100 total in 13 months.

2) One spouse refers the other spouse.  $50 for each of them.  $200 total in 13 months.

3) Spend $1,500 on Sears gift cards online on one card through Discover Deals to take advantage of 5% rotating categories at Home Improvement stores.  $75 now for the 5% categories, $150 now because of 10% for Discover Deals at  $225 now, $450 total in 13 months.

4) Spend $3,300 on Sears gift cards online on the second card.  $75 now for the 5% categories, $330 now because of 10% for Discover Deals at  $405 now, $805 total in 13 months.

5) Use the $4,800 of gift cards at and pay for the appliances through Discover Deals.  Another $200 went on the Discover card (Bill is $5,000 total).  I always like to make sure part of the purchase is made via a Discover card.  $482 now, $964 total in 13 months.

Final tally:  They saved ~$1,100 now and another $1,100 in 13 months.  The price is about the same now as it is for the other store but then they will save about another $1,100 in a year.

Keep in mind that you don't earn Discover Deals for taxes and delivery/instillation fees which is why estimated at about $1,100 instead of $1,200

As a bonus, they also earned $235 in Shop Your Way Rewards points which they can already used online through Discover Deals for more free merchandise and another $23.50 now and $23.50 in the future!

Keep in mind that 10% at expires at the end of the month and Discover Double promotion expires at the end of September.

The people I helped have never done manufactured spending.  They don't normally get credit cards for the bonus but they had some major spending to do.  If you tell people that you can save them $1,000, they start to listen.  Do you know anyone who is moving into a new home or doing construction?  Make sure they get a Discover card and refer them so that you both can get a little bit of extra money ;)