Taxes and credit cards
March 27, 2014 10:22 PM Subscribe
I owe the IRS a not-insignificant chunk of change. Is there some way I could benefit from this?
I have the funds to pay what I owe, and I've been planning to have the sum deducted from my checking account. However, I was wondering if it might be in my interest to apply for a credit card with a high sign-on bonus after a large initial transaction. I realize that I'd be paying 1.87% extra in order to pay with a credit card, but if the cash incentive combined with any cash-back percentage is favorable enough, it seems to me like it could be worth it. I have a modest income and very good credit.
I've been looking into the Barclays Arrival card, which offers 2x points per dollar and a generous bonus after spending $3K in 90 days, but the problem is that I'd rather have cash-back than travel miles.
Is there anything I'm missing? Is this a bad idea? Assuming that I will immediately pay off the amount I owe and won't carry the balance, are there any other pitfalls to be aware of?
Thanks in advance.