i have a car loan at 12% 60m. i am at payment 23. i have been offered a ccd interest rate 5.99 till paid off. of course there is the 3% fee max $50. would it be a good idea to transfer or not and how will it effect my credit report?
2006-07-13 09:46:33 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Hi TONI,
It depends on a few factors.
1. How much longer on the Car loan. The farther into the car loan, you are paying more towards principle than interest.
2. after the transfer, how much available balance will you have. Stay below at least 75% if you can.
Contrary to popular belief, not all CC's are variable, some are fixed.
Go to the following and put in your information.
You will need to know what the balance is on your car is.
And if it makes sense, DO NOT make the minimum payment. Try to pay the same amount on the credit card that you were paying on the auto loan.
AND DO NOT BE LATE on the CC payment. It will default to around the 20% range.
Credit Card Calculator
http://www.bankrate.com/brm/calc/MinPayment.asp
Auto Loan Calculator:
http://www.bankrate.com/brm/calculators/autos.asp
2006-07-13 10:14:54 · answer #1 · answered by ~Trey 3 · 0⤊ 0⤋
NO! The car loan interest is 12% but that is ANNUAL interest. The credit card interest in on a average daily balance. If you compare it the credit card interest is a lot more then the car loan.Plus the credit card interest fluctuates with the prime rate (which was gone us for the last two years). And if even once you send your payment a day late they have the right to change you to the default interest, which is usually around 25-29%-on average daily balance. The bank can never change your interest. you are much better off staying with the car loan interest.
Nikky up there is quite wrong. Getting 12% on a loan is not caused by bad credit. If the car is used, if the unpaid balance is low, bank rates at the moment are high because the prime rate itself is 8.25% right now and they can't give you anything below that. So I believe your credit is good. But stick to my advise above.
2006-07-13 09:55:01 · answer #2 · answered by fasb123r 4 · 0⤊ 0⤋
1
2016-09-26 06:22:28 · answer #3 · answered by ? 3 · 0⤊ 0⤋
If you are paying 12%, your credit probably already sucks. Stick with making the payments as usual. Don't sign up for any more credit cards. They will just ruin your credit. Work on getting your credit back up by making your payments on time. After your car is paid off and your credit is better, then you can get a credit card. That's my opinion.
Another way to do it, if you do the credit card, make sure you continue to make the same payments you are making on the car loan. That way you'll get it paid off quicker. I'd still just stick with you have till your overall credit is better.
2006-07-13 09:53:17 · answer #4 · answered by happymommy 4 · 0⤊ 0⤋
I am not a financial expert by any reason but do maintain my own finances and can tell you this - a 12% interest rate on a car loan is a high rate. One of my friends also had a very high car loan interest rate and I asked them to call their bank and talk to them to see if they can lower it a little - it worked for them. Since they had excellent credit score the bank did go ahead and lower their rate.
Second of all, I don't think balance transfers affect your credit score very much, although that totally depends on some factors. Please read this link (http://www.hotlib.com/articles/show.php?t=How_Credit_Card_Balance_Transfers_Can_Affect_Your_Credit_Score) for more information. I have had one friend who transfered their second mortage to a low interest credit cards and she hasn't had any trouble with her credit score.
Finally, you can always consult with a financial advisor and seek his/her advice. My bank gave me "coupons" so I can talk to them for free. I think all banks now a days have a financial advisor that you can go visit. Talk to your bank and see if you can get a free session with them. Usually a session like that would cost you around 250$ or so.
I hope this helps.
2006-07-13 09:56:41 · answer #5 · answered by question b 1 · 0⤊ 0⤋
In general, lenders charge more when the loan is 'unsecured'. Since your lender whose loan is secured by your car requires 12% interest, it's my bet that the credit card (which is not secured by your car) lender will find other ways to charge you to compensate himself for this additional risk. That includes the possibility of a big step up when the intro period runs out, fee to transfer balance, missed/late payment fees, acceleration of entire balance clause, etc.
If you refinance, find a lender who's willing to offer a lower rate to you because they can secure their loan to you with your car.
2006-07-13 10:38:25 · answer #6 · answered by Brand X 6 · 0⤊ 0⤋
will your credit card interest rate increase if you miss a payment and by how much? some credit card interest rates go up if you miss a payment. if that will max out your credit card, it will slightly lower down your FICO.
2006-07-13 09:59:35 · answer #7 · answered by Ruby 2 · 0⤊ 0⤋
How much is the balance on the car loan?
2006-07-13 10:03:50 · answer #8 · answered by Anonymous · 0⤊ 0⤋