I came upon this idea purely by accident.
My car would not start one morning. I fired up YouTube to diagnose the problem since I know nothing about cars. After watching a few videos I determined that the starter needed to be replaced. Unfortunately it was Sunday so all the repair shops were closed.
My former roommate recommended a friend who runs a mobile auto repair service. I texted him that I would like to have my starter replaced. He said he might be able to do it the following day. I told him I would walk to the nearest auto zone and buy a starter so he could install it right away the next day.
At Auto Zone, they told me that they would have to have the part delivered from another store. Which would arrive tomorrow since it was still Sunday. I charged the $300 part to my credit card and walked home happy knowing I had taken some action.
The next day when I woke up and the mobile mechanic said he couldn't make it. I called a tow truck instead. A truck arrived an hour later. He asked me if he could try starting the car. It started right up. Whoops. I paid the $45 service fee and drove to the nearest shop before it had a chance to die again.
I told the mechanic that the starter was not working but he wanted to test it. Turns out it was the battery. Whoops. I paid the shop $38 dollars and drove over to Auto Zone to buy a battery. A tiny woman took out my old battery and installed a new one. The final emasculation. I was able to return my starter for a full refund placed back onto my credit card.
The interesting thing about this was that when the refund processed a few days later I received the amount back on my card but it also reduced my outstanding balance for the month. This credit came back on my card as a payment. Effectively kicking the cost of my starter into next month. I began to wonder if this strategy could be used in the future to delay paying back a portion of my credit cards and therefore maintain an interest free loan on that amount.
I was pretty excited about the concept so I posted a long explanation on Reddit.com in the r/frugal group. The blow back was swift. Almost 100% negative. The post was taken down after a few days by the moderators but the comments can still be viewed at with this link.
The general consensus was that this was at the least an irresponsible way to manage your money and at worst possibly fraudulent. That I was spending outside my means. Normal rhetoric of the alt-frugal camp. I tried to explain that I was a true believer in the frugal lifestyle. That these were special circumstances. I was drowned out by the digital mob.
After taking their views into account I decided to try it anyway. I would buy an item around the $500 dollar range and return it a few days later. My first step was to find a company with a very loose return policy. The Apple store has a no questions asked 14 day return policy. That sounded good so I drove up to the mall. My plan was to buy an Apple watch. If the sales person questioned me about it I would say it was a gift.
At the Apple store I was turned away. There was a big sign that said by appointment only. I asked the person standing up front if I could make an appointment. She said it must be done online and that it might take a week to secure an opening. This was a problem. I would need to make an appointment to buy the item and then another to return the item. It was possible that they wouldn't even have any appointments available during the 14 day return period. Dejected, I walked back to my car.
I took a look at Targets return policy. It was complicated and stated that you may receive store credit. Not a great option because I didn't want to end up with the item. Finally I settled on Walmart. They have a very generous 90 day full refund return policy.
I decided to look for a kitchen appliance. My thinking was that in the event they will not give me a refund it is something I would use in the future since I enjoy cooking. I picked up this mixer for about $410 with tax. My plan was to wait a few days until the charge clears on my card and then go return it.
After waiting 2 days I returned to the Walmart where I had purchased the mixer to return it. This was in the morning so luckily I did not have to wait in line. I told the clerk that I wanted to make a return and handed her the receipt. She asked me if anything was wrong with the item. I told her that I had not opened the box. She ended up flipping the box over to verify that the mixer was still inside and had not been replaced with heavy rocks. After she was satisfied she issued me my refund.
Success! The credit showed up on my card a few days later in full. It also successfully pushed that amount onto the next billing cycle.
Upon reflection, this was probably not a very smart thing to do. While technically not illegal in any way it certainly falls into a grey area. My bank could decide that they don't like it and cancel my lines of credit. I've spent the last 4 or 5 years building up my credit. Being flagged for something borderline fraudulent would not be great. In the future I need to take the advice of the friendly digital Reddit mob. Build up an emergency fund so that when the unexpected does happen I have money available to cover it. That and never let your car break down.
