Originally Posted by Dynastar
Except, assuming you don't need to make an estimated payment, you are losing out on a year's interest on that $5,000. Lots of banks paying 4.25% out there, so the lost interest is 5000*.0425=$212.50. $212.50+$124.50=$337>$260.
(Ignoring taxes, and assuming interest rates stay at 4.25% for the rest of the year.)
"Ignoring taxes" is convenient, but since it would consume 28-35% of the interest, not vary fair while doing the comparison
$337 less 35% taxes (Fed and State, maybe higher) = $220 < $260
SVO has a current offer for bonus points to sign up for the SPG card, on top of the normal bonus and waving the first year's fee. With over $5K due, it may just be worth the transaction.