Friday, October 30, 2009

American Express Fidelity

I just got the American Express Fidelity card to my credit card arsenal. It's 2% back on points which can be deposited into cash into my Fidelity cash account:

So now I have a general card that I use for everything and get 2% cash back.

In combination with my Chase Visa Signature card (3% back on, 2% Restaurants, plus doubling the warranty up to a year of anything I buy) and American Express True Earnings Card (3% back at restaurants), I'm feeling fairly confident I have the best cards out there for cash back for my typical spending habits.

Here's a nice little grid I worked out:

Wednesday, October 21, 2009

Pay off 2% APR loan or keep it?

I have a 2% APR, unsecured loan in the amount of $5,955.28 through my bank, USAA. The original purpose of the loan was for my 2006 BMW 325i, but they didn't put my car as collateral for some reason.

It'll be paid off on Dec 2, 2010. Monthly payments are $440.37.

I have a savings account through Capital One, and they're giving me 1.64% APR due to an account I have opened up through Costco.

Analysts are predicting that negative job growth will continue until the end of 2010, when it'll bottom and possibly begin recovering. I don't imagine that the Fed will be raising interest rates within the next 12 months.

Would you pay off the 2% APR loan entirely? Or continue and let the money accrue interest and pay the monthly payments as required.

UPDATE (20:07, 20091021):

I did the amortization tables, and realized that the true cost to maintain liquidity is only $13.53. Maybe I shouldn't worry about it too much and keep it in