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Draws and your credit card
How do you guys handle the various state draws and your credit/debit cards? Although I have no credit card debt, I know that by using a credit card I spend more money...so I am doing an experiment whereby I do not use a credit card at all, only a debit card, so I can compare my spending habits. But, I am wondering how to handle the various draws for which I apply annually. Here are my perceived options: 1) Open a bank account and put in it some amount of money, say 10k...enough to absorb tag fees and any hits to the account should I draw. 2) Open a separate credit card and use it only for draws. Pay for the draws, and pay it off...but what happens when refunds come in creating a positive balance on the card? Any insight would be appreciated...Mike
I only apply in Colorado and they don't credit the card back but mail a refund check instead. I wait until the billing cycle ends the month before the drawing deadline to apply. If I don't draw the sheep, moose or goat tags I usually have a refund check or 2 back by the time the credit card payment is due and the others shortly thereafter. The CC company is essentially floating the application fees for me.
A lot of states like CO and WY issue you a refund check, less fees. Credit cards can be your friend, if you manage them right due to all the point reward incentives. If you ever have Alaska in your future, the Alaskan Airlines card is very good for free flight rewards. I have a 529 College Rewards Visa through Fidelity. I get 2% back and every time it hits $50, it automatically contributes to a tax-free college investment fund for the kids I don't have (or at least don't know about).
Cabela's is okay but only gives you 1% back in in-store money on out of store purchases. I think you are better off looking at other alternatives.
Other than the fact you can over draw your debit yet will only decline a credit card I don't quite see how you are limiting your spending?? If you're trying to manage your habits, cash is king. Watching that green leave hurts, with CC's it doesn't matter if its a debit or credit, its still plastic and you can over spend... Cash on the other hand.. well if you got $20, you aint gonna spend $21.
I agree with managing your CC's that pay you. I think Citi has a double rewards, get 1% on purchase and another 1% for payment, so 2%. It adds up pretty quick and its the money I love best... FREE. This would work out even better in wyoming and colorado b/c they don't credit the card, they send you a check so you get to keep your %.
Colorado may be switching to charging the application fee and then charging for the license only if you draw eliminating the need to send all the money upfront and eliminating the paper refunds.
well...... technically..... it's not MY credit card.......
WY is now refunding cards too.
As far as the OP, the way I look at it is, my money makes money for me, so there's no reason to have a large account for draws. I just put them on my Alaska Airlines card and don't worry about the ones that refund directly to the card like NM. The ones that send a check are great because you get the points and then deposit that money right back into your checking account.
I am the opposite of all you guys on your spending habits apparently. I HATE spending money on CC/Debit Cards. Seeing my accounts go down pains me. Cash, basically evaporates around me. Once it is withdrawn from the account (the part that hurts), its basically already spent in my head at that point. I spend cash much faster.
So with that mentality, I put every single thing I purchase in life on my Alaska Airlines card. From a pack of gum up to the most expensive draws. Pay it off every 2 weeks (essentially making it a debit card). I do keep a separate bank account for hunting spending (for budgeting purposes). I use this account for float plane hunts and draws that won't allow CCs for apps.
"Colorado may be switching to charging the application fee and then charging for the license only if you draw eliminating the need to send all the money upfront and eliminating the paper refunds."
Not to alter the topic, but Glunt you will be very sorry if they do that. Once Arizona did that, the number of applications went through the roof and draw odds got much worse. When people don't have to front the money, people come out of the woodwork to apply.
Ditto StickFlicker: odds will plummet.
If Colorado go's to draw it hit your credit card method you think you can not draw a sheep goat or moose tag now weight for 4 years see what happens
If you get the refunds on your card after you have paid off the balance (creating a large credit on your account), you can request a check from the credit card company, which will arrive in about a week. No need to "use up" the refund credits. If you apply in enough states, unsuccessfully, you will know what I mean. It is easy to get a large credit balance on your card, when all the draws are over. Bill
In this day and age with the amount of fraud and post-Equifax debacle, using a debit card is bad juju. With a credit card and in the event of fraud, the bank is out the money. With a debit card, YOU are out the money.