Is this a good choice or should I stay away. I will continue to pay same amount per month that im payiny now. Have 4 1/2 years left on loan
2007-06-22 11:58:23 · 4 answers · asked by gusss5 2 in Business & Finance ➔ Personal Finance
If you can be ABSOLUTELY sure that you will never make a late payment, or if you do, that you have another way to pay off the credit card, then it can save you money. If you don't have another way to pay off the card, and you do make a late payment, you will likely end up with 30%+ interest rates.
You also need to be sure that you will never use the card while you have the car loan on it, because any charge you put on will be carried at a higher interest rate while the low rate balance is paid first.
The other thing that you need to look out for is to make sure that your current car payment will cover the minimum payment on the credit card. Especially if your car loan was initially for more than 5 years, the current payment may be less than the AMEX payment will be.
2007-06-22 12:14:44 · answer #1 · answered by aj485 5 · 0⤊ 0⤋
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2016-09-26 11:13:36 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I actually took this exact offer myself to payoff my truck.
Just be very very very very careful you NEVER even come close to a late payment on ANY account, or else you will go to default rate, which is like 20%.
American Express is a great credit card company, they treat their customers right... just dont be late!
Also, you need to pay to correct amounts, or the loan could last forever...
On a $20,000.00 loan you should pay AT LEAST $500 per month until it is paid off... do not lower your payment as your minimum payment due goes down. Do not use the card at all, or you will pay higher interest on any purchase you make, and all payments will only be applied to the ballance transfer because payments go to lowest interest items first. Also, make sure the terms allow you to payoff a secured loan for your specific offer.
You have to promise yourself that you will pay it off quickly... dont let it drag on.
2007-06-22 12:01:26 · answer #3 · answered by Mike 6 · 2⤊ 0⤋
Make sure they would consider that a balance transfer. Paying anything other than another credit card would be treated as a cash withdraw by some credit cards. If you can get that offer to pay off your car loan, the math works.
2007-06-22 13:43:59 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋