Using Credit Cards to Pay Taxes: Is It Worth It?
00:00:00.000 | First off, why would you want to pay your taxes by credit card?
00:00:02.240 | Because it is not free.
00:00:03.320 | There are fees.
00:00:04.180 | And the way I think about it is there's really only one reason, and that's that you're getting
00:00:07.940 | a positive ROI.
00:00:08.760 | Now, those fees range from as low as 1.75% all the way up to around 3%.
00:00:15.180 | We'll talk about that a little more, which means you need to be using a credit card that
00:00:19.900 | earns more than that for it to make sense.
00:00:22.440 | And I would argue a lot more than that, or at least a decent amount more than that, unless
00:00:28.380 | you're just interested in buying points.
00:00:31.560 | Now, that might be a thing you are interested in.
00:00:33.920 | There's no easy way to buy transferable points from most of the different banks out there.
00:00:38.640 | So this could be an opportunity to buy some transferable points.
00:00:42.660 | But I think the really interesting opportunity is when you can use this to earn more value
00:00:49.460 | than what you're paying.
00:00:50.620 | And that could even be a spread on cash back.