need help figuring out the best way to pay for my cruise

[ultrafighter]

It helps me see all sides of it when I have multiple people and their points of view.  So which way of paying for my cruise makes the most financial sense?

 

Option 1: smaller monthly payments billed to our Carnival credit card (for about the next 14 months) which offers 0% interest on cruises for 6 months plus double points, so to speak (so each installment essentially restarts the clock)

or

Option 2: buying fewer but larger gift cards from AARP ($450 for $500 cards) and using those

[d9704011]

I don't know what Carnival points can be used for or whether they have any worth on your cruise but the 10% AARP discount on cards seems a better bet if you have the cash on hand.  Maybe get some credit card points buying them?

[ultrafighter]

3 minutes ago, d9704011 said:

I don't know what Carnival points can be used for or whether they have any worth on your cruise but the 10% AARP discount on cards seems a better bet if you have the cash on hand.  Maybe get some credit card points buying them?

The exchange rate isn't the greatest thing ever, but with enough of them I can use it for a small statement credit.  Small.

[ALWAYS CRUZIN]

44 minutes ago, ultrafighter said:

It helps me see all sides of it when I have multiple people and their points of view.  So which way of paying for my cruise makes the most financial sense?

 

Option 1: smaller monthly payments billed to our Carnival credit card (for about the next 14 months) which offers 0% interest on cruises for 6 months plus double points, so to speak (so each installment essentially restarts the clock)

or

Option 2: buying fewer but larger gift cards from AARP ($450 for $500 cards) and using those

I always use my Bank of America credit card with excellent cash back, plus it includes excellent travel insurance. Use it for my credit on the ship also.

[d9704011]

6 minutes ago, ALWAYS CRUZIN said:

I always use my Bank of America credit card with excellent cash back, plus it includes excellent travel insurance. Use it for my credit on the ship also.

Excellent.  Neither of the OP's stated options addressed.

[DramaQueen22]

Divide the full amount by the number of months until your final payment date.  Then simply pay that amount on a day you set each month.  I have a reminder set on my phone for my trips and it's easy that way.  No fuss, no interest.

 

Carnival also does this with their Easy Pay Option, but they will not accept a debit card now.  (They used to).

[ldubs]

Option 2, assuming you buy with a CC, the 10% discount will help offset the interest pmts.

 

If you could do Option 1 in 6 mos to take advantage of the zero interest, that would be good too.  

 

 

[Purvis1231]

Right now, I would not put money on a Carnival gift card that I could not afford to lose since we do not know the future. 

[Saint Greg]

I do the gift cards to save 10%. And book excursions with the carnival card which gives you a 10% statement credit on excursions.

 

Edited June 19, 2022 by Saint Greg

[fuddrules]

10 hours ago, Purvis1231 said:

Right now, I would not put money on a Carnival gift card that I could not afford to lose since we do not know the future. 

This is true but it's true about all future events.  We do not know what the future holds. 

[BoozinCroozin]

You earn 2% on your Carnival CC. It should be the same purchasing the gift cards. Buy the gift cards for 10% off, earn the double points on the cc, and get a 12% discount on what you pay. This is what I do with my Venture card. We earn about $50/month on our card and pay it off at the end of the month.

[BoozinCroozin]

10 hours ago, Purvis1231 said:

Right now, I would not put money on a Carnival gift card that I could not afford to lose since we do not know the future. 

I would not buy a GC until it is close to payment date. No reason to spend the money until you have to. Plan accordingly when you need to buy the GCs.

[craig01020]

I prefer to put cash in an envelope and mail it to Carnival's corporate office in Miami.

[carohs]

1. Each installment would not restart the clock. You have 6 months from each transaction to pay it off, having a second transaction does not extend the due date of the first.

2. Your choice will be dependent on your financial situation. What you are comfortable spending each month.

 

IMO 10% discount on AARP is a better value than any points and less cash up front. The only caveat being that AARP limits the quantity of GC you can buy in one month. I would put your installment budget aside (if not already $500 or more) and buy the $500 GC. 

[Joebucks]

21 hours ago, d9704011 said:

Excellent.  Neither of the OP's stated options addressed.

 

If OP is going to ask for advice, it is only proper someone gives the best advice. 

 

The Carnival credit card can be a good offer if you need to finance the cruise (some may say you shouldn't be going if you can't afford it). If you buy lots of Carnival excursions, the 10% off can be useful. Other than that, it is a weak offer. People associate "vacation and double points" with more value than it actually offers.

 

Gift cards can be a good way to save some money. Just make sure you buy the right amount, don't lose them, and are ok with the lack of protections offered. You could also miss out of partner portal cash back or other third party deals since you have limited your form of payment. Sometimes, I may pick up a few of these for gratuities and onboard spend.

 

For those who travel often, I would suggest at least entertaining the idea of a premium travel credit card. My chase sapphire is 4.5% return on cruises and includes travel insurance, which normally exceeds the 10% gift card return. Not to mention other benefits and protections.

[d9704011]

2 hours ago, Joebucks said:

 

If OP is going to ask for advice, it is only proper someone gives the best advice. 

 

The Carnival credit card can be a good offer if you need to finance the cruise (some may say you shouldn't be going if you can't afford it). If you buy lots of Carnival excursions, the 10% off can be useful. Other than that, it is a weak offer. People associate "vacation and double points" with more value than it actually offers.

 

Gift cards can be a good way to save some money. Just make sure you buy the right amount, don't lose them, and are ok with the lack of protections offered. You could also miss out of partner portal cash back or other third party deals since you have limited your form of payment. Sometimes, I may pick up a few of these for gratuities and onboard spend.

 

For those who travel often, I would suggest at least entertaining the idea of a premium travel credit card. My chase sapphire is 4.5% return on cruises and includes travel insurance, which normally exceeds the 10% gift card return. Not to mention other benefits and protections.

The OP did not ask for general advice on how he/she might wish to pay for the cruise.  Two options were presented and those seem to be what is currently in play for him/her.  If you want to make all kinds of suggestions on alternate payment strategies go right ahead, just keep in mind they may not be at all useful to the OP.

[n6uqqq]

I pay for all my cruises with gift cards from AARP or Allstate at 10 percent off plus I buy them online with my BofA cash rewards Visa which yields an additional 3 percent off. The one thing to consider about using gift cards is you are married to them once you buy them. If you have to cancel your cruise that is all you will be refunded is in new gift cards. Like others said I would buy the cards as close to final payment as possible.

[Kenito]

If paying CASH, then the AARP option is best.  If using credit, then option 1.  However...

 

...during Covid I booked far in advance, and for that reason I chose the zero interest monthly payments Carnival offers. (I don't want another credit card.  Just my thing.)  Also, since I am booking far in advance, I wouldn't want to pay for the AARP option in advance unless I was in a CASH position to do so.  So, cash is the only effective way to benefit from the AARP card... for me.

 

My reasoning is 'who's to beat zero interest?' (for longer than the Carnival card intro 6 months), and it is automatically charged to my AppleCard, 2% back, + other benefits, which may or may not be part of the OP's planning.  So, I can get the 2% without adding another card.  The 10% discount is excellent but isn't that only for Carnival excursions?  We can usually save more than 10% doing our own thing... but we do book Carnival excursions when concerned about time, etc.  

 

As the old saw goes, "Why doesn't every American own an elephant?  No one offered to sell them one for a dollar down and a dollar a month!"

[BoozinCroozin]

1 hour ago, d9704011 said:

The OP did not ask for general advice on how he/she might wish to pay for the cruise.  Two options were presented and those seem to be what is currently in play for him/her.  If you want to make all kinds of suggestions on alternate payment strategies go right ahead, just keep in mind they may not be at all useful to the OP.

It is equally possible that the OP does not have all the information available on how to pay for a vacation or ways he/she could save money. 

[reeinaz]

I like to remind folks that if you pay  with carnival gift cards you don’t sail, the refund will be in the form of gift cards. So unless I have cruises booked to apply those refunds to, I’d rather get the “cash” refund. 

[DQGal]

Another thought, buy carnival gift cards at Kroger or carnival grocery stores. Get free money off gas, with today's prices lol. When my daughter and sil built their home, they bought Lowe's gift cards, then used them for What needed,  had free gas for quite some time.

 

[grillinchillin]

On 6/18/2022 at 12:03 PM, d9704011 said:

Excellent.  Neither of the OP's stated options addressed.

 

Par for this forum! lol!

[JerseyGirlJen]

I would opt against making smaller payments on a credit card.  I did that, and when cruises 2020 and 2021 sailings got cancelled it was a major PITA to track all those small payments and make sure they all got refunded.  In addition...if your card gets compromised you'll get issued a new CC#....eventually the prior card gets purged in the banks system (my bank is 6 months) and then when Carnival refunds those payments on that old card that were purged just float around the "the cloud".  It takes time to properly find them.  

Lesson learned.  I now make my deposit and then make one payment when final payment is due.  

[camper49]

On 6/18/2022 at 12:56 PM, ALWAYS CRUZIN said:

I always use my Bank of America credit card with excellent cash back, plus it includes excellent travel insurance. Use it for my credit on the ship also.

I was not aware of travel insurance on my Bank of America credit card..

[djcass4199]

I’d just pay the deposit and then pay the final payment is due. If you are intent on paying it every month, stick the monthly payment in a savings account each month and pay it off at final payment date. I don’t play the gift card game. Paying $450 for $500 worth of gift cards just to save $50 is not worth the hassle, plus like others have said if the cruise is cancelled you are married to those gift cards.