Buying a Car with a Credit Card Cash Advance?
Buy a Car with a Cash Advance?
by Scott Bilker
Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmartŪ E-mail Newsletter (http://www.debtsmart.com). Sign up today!
Hi Scott,
Read your article Consider Financing Your Next Car with a Credit Card and as you asked I'm commenting on same. The logic of the 4.9% at 6 Months makes sense, BUT is it a reality? You said use your credit, WRITE A CHECK, isn't writing a check tantamount to a CASH ADVANCE? I believe it is with most credit card companies. If it is, then aren't you looking at a much higher interest rate? Example, one of my credit cards has PURCHASES @ 18.90, while CASH ADVANCES are at 23.00! And, any monies paid against the balance ALWAYS goes to the lower interest rate! Any comment? BTW, I enjoyed the article and you have a great website! Very interesting, informative & helpful "stuff!"
--Mel
Answer
Mel,
Thank you for writing!
You're correct that you would probably have to write a check. And yes, it's a cash advance, however, I have many, many, many, no-fee, low rate, check offers. I have one I just used for 2.99%, no-fees, which is far better than any used car loan I could get otherwise.
I said in my article to "consider" using your credit card. If it doesn't make sense in your case, then don't do it, but many people may be able to get a better deal this way.
Talk to you later.
--Scott
Reply
I just wanted to see if my train of thought process with regard to interest rates (cash vs purchase) was correct. BTW, know where I can get a credit card with a $75,000 credit line, I want to buy a used Ferrari! Keep up the great work, love your website!
--Mel
For free information about how we can help you reduce your debt, please fill out our form.
|
