Originally Posted by
byb310
1.87% fee is the cheapest I saw to use a credit card for your tax bill. Would you pay the fee to get the miles? Example: get 10,000 miles for a $187 fee? What is the best way to determine this?
Depends on the card- I intend to use my taxes this year to hit the $20,000 spending bonus on my own and my wife's British Airways Visa. That's approximately $748 for 240,000 Avios- that's worth it for me
I would maybe consider paying the fee for Starwood Points as they transfer 1:1.25 to many programs
Additionally the new Freedom unlimited makes the issue close- 1.5 UR points for 1.87 cents is very close to good value
There are not many I would pay the fee for a 1:1 earning ratio (ie. your example of paying $187 for 10,000 miles) since you're essentially buying miles for 1.87 cents per mile. Unless you have a specific redemption in mind you're probably better off with cash.
You could also put the taxes on a 2% cash back card and earn .13% paying your taxes
. Not glamorous but its a guaranteed profit as opposed to miles.