I have $2,000 cash for my down payment, but I was wondering if it would be possible for me to use my credit card as a down payment. I have $2,000 credit limit. I want to use my credti card then pay it all off...Is this a good idea? I was also thinking about using my credit card then $1,000 cash making my down payment $3,000.
2007-12-20 06:19:15 · 11 answers · asked by eelacissej2005 1 in Cars & Transportation ➔ Buying & Selling
Yes, normally you can do such a thing if you're going through a car dealer. Keep in mind most dealerships cap a limit on how much you can charge on your credit car. Usually it's around $2,500 so you're under the limit and should be OK. People do this all the time. If you're like most people they like to put down a little extra down payment just to help keep their monthly payment on the car lower knowing all well they will pay off the credit card sooner. The rule of thumb is for every extra $1000 down payment your monthy payment goes down $20.00 or so depending on the loan term. Depending on your credit score a lender may be able to get you a loan with no money at all out of pocket or you may be required to put 1k,2k,3k,4k,5k or more as down payment.
2007-12-20 06:25:38 · answer #1 · answered by bobe 6 · 0⤊ 1⤋
Car Down Payment Credit Card
2016-11-09 11:44:40 · answer #2 · answered by daviss 4 · 0⤊ 0⤋
it all depends on the dealership you go to. I'm sure that most will accept a credit card. The more you put down, the less you will have for monthly payments. With a $2,000 limit it sounds like you're just getting started with having credit. If you want to work on getting a better rating and limit, definitely use the credit. But don't pay the credit off all at once. Make all the payments on time and send in more than they require for a monthly payment.
2007-12-20 06:32:09 · answer #3 · answered by James P 2 · 0⤊ 0⤋
It has been done for the past several years, unfortunately with some disastrous results for those that got in with no down payment and now cannot refinance into better rates or sell because the property is worth less than they purchased it. Most lenders have done away with the 100% purchases (which was two loans combined usually to cover 100% financing), but FHA allows 3% down payment- and funds can be gifted, and FNMA announced effective June 1, they will also allow 3% down payments.
2016-03-22 21:04:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Depends on the interest you are paying your credit card, and the APR you are getting on your car loan. If your CC is a high rate, use cash. There is no reason to put 2 grand on your credit card, then pay it right off unless you get frequent flyer miles or something else like that. The more you put down, the lower your payment, clearly, but it really depends on your loan as to how much difference 1000 will make to your payment. On a 72 month loan, it won't make that much difference, or on a high APR, it might make some.
2007-12-20 06:29:57 · answer #5 · answered by Bramst 3 · 1⤊ 0⤋
This Site Might Help You.
RE:
Buying a new car...down payment question.?
I have $2,000 cash for my down payment, but I was wondering if it would be possible for me to use my credit card as a down payment. I have $2,000 credit limit. I want to use my credti card then pay it all off...Is this a good idea? I was also thinking about using my credit card then $1,000 cash...
2015-08-08 01:53:06 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Financing at a lower interest rate can be acquired for a vehicle loan compared to a credit card. It would be fine if you were to pay off the credit card in full without a finance charge.
I would consider buying a used car AWAY from a dealership because new cars depreciate thousands of dollars the second you drive off the lot.
If you have to go to a dealership for a new car, first get financing from a credit union or your bank to see what kind of interest rate you can get. Dealerships are know to jack-up the interest rate after the bank approves the applicant for a lower rate (more money in their pockets).
Personally I don't want to go to a dealership because I know that the one time I did go I paid more for the car and more on financing.
2007-12-20 06:58:27 · answer #7 · answered by Jeff 4 · 0⤊ 1⤋
I just got a new car in July and we put a small amount onto a credit card and then had a cashier's check for the rest. I know that the dealership where I got my car had a limit as to how much you could put onto a credit card so you might want to check with the dealership.
2007-12-20 06:27:56 · answer #8 · answered by sweetpea082303 2 · 0⤊ 0⤋
You can use the credit card to pay for as much of the car as your credit will allow. However, you would get a better rate (generally speaking) from the dealer to finance the car. Using the card to pay the amount that you currently have, and then paying off the card with that amount IMMEDIATELY may help your credit rating, which will help you later in getting a higher limit or paying lower interest rates on loans and mortgages.
2007-12-20 06:27:13 · answer #9 · answered by Anonymous · 0⤊ 1⤋
DON"T DO IT, you'll never get it paid off this is how people get into debt. You'll stretch a downpayment out over an infinite repayment period. I've seen poeple do this and it is a BAD IDEA. I cannot stress this enough. just use the 2k and FORGET THE CARD.
2007-12-20 06:45:16 · answer #10 · answered by Barcadcadacada 6 · 0⤊ 1⤋