I have received an offer that is 0% for LIFE on transfers. I have enough credit to purchase the car then transfer it to this 0% card. What are the pros/cons of financing with a loan vs. credit card in this situation?
2006-07-21 10:39:50 · 17 answers · asked by txmcs 2 in Business & Finance ➔ Credit
Did you people read her question???????
Transfer the loan to the credit card with 0% interest on balance transfers. There may be a fee involved with the transfer.
Benefit: Put the cash in a savings account and let the interest accrue while you pay off your credit card.
Cons: The balance transfer fee (mine was 3%).
Who is the credit card with?
2006-07-21 10:46:12 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I woud think since they are both 5% it should be the same. However I would suggest you do the bank loan because on your credit report a $20,000 car loan from a bank is looked upon more favorably than a $20,000 credit card loan. Although if you have good credit, you can apply for a no interest loan or get a very low balance transfer rate and beat the bank. Also remember that on most credit cards unless the car is the only thing on the car, you may end up having to pay a lot more. For example say you have a 5% interest on the $20,000 car purchase. And then you go and buy something for $1000 on the same card but the interest went up to 10%. When you mail in your payments, that $1000 with the nigher interest will be paid off last, there by causing you some major money problems.
2016-03-27 02:23:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
1
2016-09-26 12:23:30 · answer #3 · answered by ? 3 · 0⤊ 0⤋
If the credit card interest is actually 0% for life then that would be better than a loan from a bank but I would be skeptical to say the least. Check and double check the terms of the credit card offer. Also it may affect your credit rating differently using the card rather than a standard loan. If you put it on the card and in the future need to get a loan your credit report may show a credit card that is maxed out and this would probably give you a lower credit score than if you had a standard loan. But heck....free money that is very hard to pass up.
2006-07-21 10:51:19 · answer #4 · answered by erik c 3 · 0⤊ 0⤋
I would pay cash if you had it. If not your best financial option would be a loan since credit card interests rates typically tend to be higher.
Be cautious that the credit card company may be offering a 0% interest rate that may be only good for 12 months then the rate will to the the market rate sometimes as much as 18-23% or higher.
2006-07-21 10:46:16 · answer #5 · answered by landkruzer 2 · 0⤊ 0⤋
Even if it's 0% for life, read the fine print. Most credit card companies reserve the right to jack your rate WAY up if you have a late payment (even a one day delay in mailing time) and there could be a balance transfer fee as well.
2006-07-21 12:01:27 · answer #6 · answered by mockingbird 7 · 0⤊ 0⤋
Get a loan. The interest on a credit card is usually too high.
2006-07-21 10:43:27 · answer #7 · answered by SheShe13 3 · 0⤊ 0⤋
I totally agree with SexyTrojan.
Several weeks ago, or so, the national news ran a story about a guy who did exactly that. He financed not only his vehicle, but his home as well.
ALL interest free. He always made big payments (what he would have made if he had interest to pay on the loans, or more) and paid them off in no time.
2006-07-21 13:03:24 · answer #8 · answered by echo 7 · 0⤊ 0⤋
Get a loan from the Credit Union, especially from the government or the airline, such as Boeing, Federal government, and so on.
Credit Union are cheaper and they have better offer in helping obtaining a car.
2006-07-21 12:43:37 · answer #9 · answered by SweetBrunette 5 · 0⤊ 0⤋
You can do it if you're very responsible and pay every month (they will take away the 0% if you're ever late). Make sure you read the fine print and don't take out the maximum. The sooner you pay it off the better even if it is no interest.
2006-07-21 13:48:37 · answer #10 · answered by orangesensational 2 · 0⤊ 0⤋