Should I keep the truck balance where it is at $27,700 at 5.34% for 72 months ($470/month) or should I transfer some of that over to a credit card and have the truck be $17K at 5.34% and have $10.7K at 3.3% for life with the credit card?
I'm not sure if the interest is calculated the same, or if this would save me a bit of money. I am not interested in lower payments, just saving some money on interest.
2007-09-12 06:10:58 · 7 answers · asked by jpn72 2 in Business & Finance ➔ Credit
When you split the loan you will have two monthly payments. If you can afford the extra payment, why not just pay that on the principal of the car loan. That would decrease the interest you pay.
The problem with transferring over to the credit card is that just about anything can allow the credit card company to change your interest rate to a default rate. If you are late paying some other debt, or your credit score drops, they can raise your rate.
Also, those low interest rate for life usually require a certain number of charges per month which accrue interest at the regular rate. And is there a transfer fee?
2007-09-12 06:18:23 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
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2016-09-26 14:47:14 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Credit card debt is an inevitable reality for most of us. Unless born with a silver spoon in the mouth, we find it pretty much difficult to keep up with the credit card repayment schedule, and the result is a good hefty credit card debt. Things go worse if the credit card debt is attracting high interest rates and causing further burden. Paying the monthly minimum is one of the options which we all find shelter in and this makes things even more disastrous. Is there a way out? Definitely yes. If you haven't already heard of credit card balance transfers, read on.
Credit card balance transfer is a process by which we can transfer our outstanding balances on a credit card (which are generally at high interest rates) to a low interest rate credit card.
Balance transfer has some good advantages let us look at a few of them.
Balance transfer is one of the best methods to get rid of that credit card debt. When you transfer balances all your outstanding balances are wiped out and transferred to new credit card.
Depending on what deal you get on the balance transfers the new interest rates on transferred balances could be 0% or a low rate for a particular period. The ideal situation should be to get all the balances cleared within this low interest rate period.
The repayment terms will also relax considerably as you transfer your balances.
Credit card companies bundle a lot of exiting features with the balance transfer program, this could be a no annual fee offer and your favorite reward program. Read more from: http://www.credit-card-gallery.com/article/374,Credit_card_balance_transfer_A_really_good_option_for_those_with_huge_credit_card_debt
2007-09-12 23:51:39 · answer #3 · answered by caleb b 2 · 0⤊ 0⤋
Suppose your FICO ratings drops for any reason. You could be late in paying a utility bill.
Then the credit card company changes your rate to 18% or 26%.
Personally I would buy a $2000 truck and save the difference. If it breaks down, I would buy another $2000 truck.
2007-09-12 06:51:37 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Contact the credit card company and ask them what the term of the loan would be.This is critical in determing your monthly payment.You may be saving on interest but your monthly payment could go way up or way down depending on the term.Dont get surprised the tele reps will calculate everyting for you.
2007-09-12 06:18:57 · answer #5 · answered by Mike White 1 · 0⤊ 0⤋
no, because at any time, they can hike up the interest rate
to whatever the law allows !!!! Which will be higher than 5.34%
2007-09-12 08:01:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
watch out for the "transfer fee" it will come close to equalizing the rate.
2007-09-12 06:15:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋