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janellec1986

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Should I use one credit card to pay off another?
I have the Discover IT card with a $1,000 CL (very low, I know). The next rotating rewards category is "home improvement stores" which is awesome because I'm about to remodel our kitchen. I also have an AMEX card with a $16,000 CL that I have 0% interest until September 2015. Here's what I plan to do...

Make purchases on my Discover IT card to get the 5% cash back. Pay off my Discover card (several times per month) with my AMEX card to free up more credit on my Discover. Pay off my AMEX card several times a month to keep my utilization below 30% (I have the cash for the reno, but I want to benefit from the 5% cash back feature of the Discover.) Is this a smart move??

CK Score: 741
FICO: 718 (as of 3/18/14)

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7 Contributions
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I'm not actually doing any balance transfers. For example. I will use my discover and buy $1,000 at home depot. Then I will use my amex card to pay off that card. (When I make a payment on my discover I will use the AMEX instead of my bank account). No balance transfer required. That way I have 0% utilization on my discover so I can buy more stuff at home depot.... I will always pay my balance off on my AMEX every month (or at least keep the utilization below 30%.

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Helpful to 3 out of 3 people

Sounds like a great idea to me!  I do the same thing with the zero interest offers.  Just be sure to figure in any transfer fees they charge when calculating the benefits and drawbacks.

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