My credit card company is offering money at 3.9% should i take some of the money and pay down my car loan which is 7.9% ? Thanks.
2007-12-13 03:39:09 · 8 answers · asked by kakeydec 4 in Business & Finance ➔ Credit
Look carefully at the terms of the 3.9% offer. My guess is that it is an "introductory" rate, after which time the rate will increase. If the increased credit card rate is LESS than 7.9% you should transfer the debt.
2007-12-13 03:43:25 · answer #1 · answered by jwishz 7 · 1⤊ 0⤋
Do this: Calculate how much time will take you at this time to pay off your car with your current loan, probably is as easy as just add all the monthly payments you still have to make, that will give you a number and a period of time (an ending date).
For the same period of time, calculate how much is going to cost you in your credit card company, ask a customer service for help (but don't believe everything, because may say something - misake or you can get confused - and what counts is what is in the documents).
Suppose is 1 year, you know you will spend X amount in your current terms, compare the final result with the other choice considering a lower interest but also if the interest remains the same and if there aren't hidden fees or annual fees.
It sounds to me it's a good deal as long as the addition of all the payments to them, will be less amount than the addition of all the payments to your current loan.
2007-12-13 03:51:51 · answer #2 · answered by livingthe30s 3 · 0⤊ 0⤋
Credit card. People tend to not fully realize how much they are paying in interest each month and how much it adds up. While paying off you're card may give you more "play money" each month, paying off your credit card is going to say you a whole lot more money in the long run. Paying the minimum every month will increase the amount of time you're going to take to pay it back (for some people it doesn't even cover the interest eventually.) Not only will you not be paying excess money in interest, but you'll need the better credit score as time goes on.. even more so with a new child on the way. A better credit card score can help in many many ways, like insurance (which is other based on your credit score.) Kill the credit card... best choice in the long run, and the future is what you really want to think about.
2016-05-23 09:24:27 · answer #3 · answered by ? 3 · 0⤊ 0⤋
You need to read it over carefully before making a decison there probably a catch some were. You might check on a loan with lower interest at a bank you deal with and borow the amount you need to pay your credit card off or if you own a home you can see if you have enough equity in it to get a small loan to pay your interest down. Hope this may of helped you. Godbless
2007-12-13 03:53:48 · answer #4 · answered by RON G 3 · 0⤊ 0⤋
that 3.9% rate isn't going to last forever - it will eventually do to double digits and the monthly payment on that amount you are"refinancing" will probably be higher than the car payment was PLUS, your car payment will not decrease, only the loan will shorten (if they even let you - if you get send them money with no explanation - they won't apply it properly - I guarantee it), so if you're trying to reduce your monthly cash outflow -this idea will only make it worse
2007-12-13 05:48:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
4% is a nice savings.
If your loan agreement permits early pay off and/or partial.
Can you handle two payments?
That will not reduce your car payments.
2007-12-13 03:43:26 · answer #6 · answered by ed 7 · 1⤊ 0⤋
watch for the transfer fees!!! could add 3-5 % to the cost.!!
2007-12-13 04:13:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
*** long as, there are no other hidden cost or fees, Offcourse it does. Why would you question it?
2007-12-13 03:42:36 · answer #8 · answered by Anonymous · 0⤊ 0⤋