Apple iPadThe newly released Apply iPad tablet PC/gigantic iPhone look-a-like came in at a price point that was much lower than many analysts had predicted. No doubt many technophiles and Apple lovers will succumb to the temptation to rush out and buy the Apple iPad even if they have to slap down their credit card to make the purchase without having the money in the bank ready to pay off their credit card balance in full when it comes due.

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While there are 6 different prices for the iPad ranging from $499 to $829 let’s use the high end price of $829 and figure out just how much the true cost of the Apple iPad would be to someone who purchased the iPad with their credit card but opted to just make the minimum monthly payments instead of paying off their credit card balance in full when it comes due.

Using the lifetime credit card cost calculator we see that although the iPad costs $829 up front the true cost including the credit card interest charges balloon to $1,022.37 assuming a 21% credit card interest rate and a payoff period of 2 years.

If your credit card interest rate is 25% and you wait 5 years to pay off the entire balance then the total cost jumps to a staggering $1,459.93!

On the flip side if you are a smart credit card user and you use your cash back credit card or your rewards credit card to make all of your purchases and then pay off your credit card balances in full each month when they come due then you could end up with some very attractive prices that are much lower than non credit card users will end up paying (check out the cash back credit card calculator to see just how much you could potentially earn every month depending upon the categories that you spend money in).

For example, if you use a credit card like the Discover More Card or the American Express Blue Cash Credit Card or the Chase Freedom Card or any other number of cash back rewards cards, you can offer up to 5% cash back on certain purchases.

There is usually a guaranteed minimum of at least 1% cash back then assuming that you bought the Apple iPad using a card that offered 5% cash back on the purchase you would in effect end up paying a net price of just $787.55 as opposed to the full $829.

Apple iPad Front View Side View

What purchases have YOU made on credit without having the money in the bank that you have paid dearly for in interest charges (or what purchases have you made where you used your cash back card to save you money)?

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Disclaimer: This content is not provided or commissioned by American Express, Visa, MasterCard, Discover, or any other credit card company or issuer. The opinions expressed here are the author's alone, not those of any credit card company or issuer, and have not been reviewed, approved or otherwise endorsed by any credit card company or issuer. Credit Card Chaser may be compensated through various affiliate programs with advertisers. As always, Credit Card Chaser is an independent website commmitted to helping people research credit card offers and find the best credit card!

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