good way to pay off your car!
#1
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good way to pay off your car!
ok so im contimplating if im going to pay off my car loan with a credit card. i have a 18 thousand dollar loan for my camaro at 9% interest!!! anyway what i would do is get my citibank card which is 0% for 1 1/2 years and then a fixed rate of 3% after that and pay off my loan company. it would save me about 4 thousand dollars and i would be able to pay it off about two years faster. any opinions on this???? i worked at citi bank and it seemed like people did it all the time, has anyone tried this before?
#4
Yes, I did a similar thing with one of my vehicles. As long as you make the minimum payment to your 0% card every month and are ready to pay it off completely when the 0% wears off, then you will be fine.
#5
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Originally Posted by TXZ28LS1
i dunno man. i try not to use my credit card.
Credit cards are a wonderful tool if used with proper discipline and respect, NOT as another form of income. If you do not have self-discipline then you should set fire to any & all credit cards you own and run the other way.
#6
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Beware - the "3% fixed after that" interest rate is usually not really "fixed". The rate starts out at 3%, but if you read the fine print you will see that the credit card company usually maintains the right to adjust the rate based on a number of economic factors. I think you would be better off finding a better loan interest rate from a bank or credit union. Just make sure you read the fine print.
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yeah its a citi platnium card and it is a 3% fixed rate unless you default for some reason. the interest rate will then be prime 21.45% plus variable 15.35% until the balance is payed in full.....so i cant even think of not paying it! but even after the 3% it will be a hell of alot cheaper than the 9 im getting now..... i have a 25k limit on my card now
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#9
Originally Posted by 9silverbird8
You could always transfer the balance to another card after the 0% period is over, then start the whole process over again
#10
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If you do switch it to a credit card, I would set it up for automatic payments from an bank account. If you are late for a payment, you'll get topped out at the 21.xx% rate. It might take 2 late payments, but that's how they get people. That whole fine print thing that was mentioned.
On a rant, I bought my 2000 Trans Am in Feb. 2005 at 5.75% interest. 4 weeks ago, I bought my wife a 2002 Grand Prix GT, and the interest is 8.6%. WTF?! 5 year old car gets lower interest that a 4 year old car? I know it's the way car economy is going now, but damn.
On a rant, I bought my 2000 Trans Am in Feb. 2005 at 5.75% interest. 4 weeks ago, I bought my wife a 2002 Grand Prix GT, and the interest is 8.6%. WTF?! 5 year old car gets lower interest that a 4 year old car? I know it's the way car economy is going now, but damn.
#12
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You should just pay a little more each month on your current 9% loan (if you can). This will offset the interest rate by paying down the loan principle,and will reduce the ammount of interest that you pay over the life of the loan. That way you can pay off the loan sooner and not wreck your credit with a long line of credit card mistakes.
#13
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JohnnyC hit the nail on the head. READ THE FINE PRINT. Don't believe everything you hear and make sure you read the whole agreement. If you lose your job, if you get another credit card or close an account, those are just a few reasons they could use to change your interest rate.
#14
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Originally Posted by JohnnyC
You should just pay a little more each month on your current 9% loan (if you can). This will offset the interest rate by paying down the loan principle,and will reduce the ammount of interest that you pay over the life of the loan. That way you can pay off the loan sooner and not wreck your credit with a long line of credit card mistakes.
#16
im just talking here but with a credit card isnt it the apr of the remaining balance?? Like if your APR on your credit card is in fact 3%. and your loan with the bank is 9% the 9 is the fixed rate on the total amount. but isnt the credit card 3% of the remaing balance every month?, so you would be paying 3% of 18000, and then 3% the next month on whatever is left. if this makes sence and i could be wrong but i thought thats how credit cards worked?
#17
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Originally Posted by novi2000
im just talking here but with a credit card isnt it the apr of the remaining balance?? Like if your APR on your credit card is in fact 3%. and your loan with the bank is 9% the 9 is the fixed rate on the total amount. but isnt the credit card 3% of the remaing balance every month?, so you would be paying 3% of 18000, and then 3% the next month on whatever is left. if this makes sence and i could be wrong but i thought thats how credit cards worked?
I understood about 3% of what you just posted...
#19
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Originally Posted by novi2000
im just talking here but with a credit card isnt it the apr of the remaining balance?? Like if your APR on your credit card is in fact 3%. and your loan with the bank is 9% the 9 is the fixed rate on the total amount. but isnt the credit card 3% of the remaing balance every month?, so you would be paying 3% of 18000, and then 3% the next month on whatever is left. if this makes sence and i could be wrong but i thought thats how credit cards worked?
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Originally Posted by novi2000
im just talking here but with a credit card isnt it the apr of the remaining balance?? Like if your APR on your credit card is in fact 3%. and your loan with the bank is 9% the 9 is the fixed rate on the total amount. but isnt the credit card 3% of the remaing balance every month?, so you would be paying 3% of 18000, and then 3% the next month on whatever is left. if this makes sence and i could be wrong but i thought thats how credit cards worked?