Originally posted by: PaulNEPats
I was thinking of doing this, since I got an invitation offer in the mail. The "catch" is you need to make 2 purchases each month (no minimum amount required). I currently have 15.8k in principal remaining on my car loan, and was thinking of BTing 8k of that onto the Discover card, once approved.
It's kind've risky, but you gotta take a risk every now and then. What do you guys think?
Originally posted by: tfinch2
So what monthly purchases are you going to make? A few packs of gum?
Originally posted by: DAGTA
Originally posted by: PaulNEPats
I was thinking of doing this, since I got an invitation offer in the mail. The "catch" is you need to make 2 purchases each month (no minimum amount required). I currently have 15.8k in principal remaining on my car loan, and was thinking of BTing 8k of that onto the Discover card, once approved.
It's kind've risky, but you gotta take a risk every now and then. What do you guys think?
I was considering a similar offer last week. The thing that stopped me: credit card debt appears worse on your credit report than a secured car loan.
Always read that fine print with the credit card companies. You could be limited in what you can xfer and also the APR could change depending on their policies.
Putting the car loan on your credit card could affect you negatively in a few ways.
Having a debt like a car loan, or mortgage looks better on your credit report than a high revolving credit card balance.
If the transfer amount to the credit card is close to your total credit limit (on top of it being a long standing revolving balance), then that looks worse on a credit record.
Your car loan is a lump sum loan at a certain dollar amount, amortized over the life of the loan, it's not a line of credit, so you have more security knowing that loan is locked in until the principle is completely paid off, you don't have anywhere near such security with a credit card line of credit.
If something happens in your life and you cannot pay the loan off, then you are in better standing with a lein on your item, rather than an outstanding and revolving line of credit. If the bank wants to repossess the car and close the loan, you're in better shape than if you outright own the car and have an oustanding credit card balance. The bank knows it's money is tied to a tangable asset, the credit card company does not, and only knows that you owe them X amount of dollars for whatever reason.
I guess it could depend on your situation, but I don't think it's an overall good idea.
Originally posted by: SampSon
I think I posted in a thread about this on another forum. I think I have it handy.
Always read that fine print with the credit card companies. You could be limited in what you can xfer and also the APR could change depending on their policies.
Putting the car loan on your credit card could affect you negatively in a few ways.
Having a debt like a car loan, or mortgage looks better on your credit report than a high revolving credit card balance.
If the transfer amount to the credit card is close to your total credit limit (on top of it being a long standing revolving balance), then that looks worse on a credit record.
Your car loan is a lump sum loan at a certain dollar amount, amortized over the life of the loan, it's not a line of credit, so you have more security knowing that loan is locked in until the principle is completely paid off, you don't have anywhere near such security with a credit card line of credit.
If something happens in your life and you cannot pay the loan off, then you are in better standing with a lein on your item, rather than an outstanding and revolving line of credit. If the bank wants to repossess the car and close the loan, you're in better shape than if you outright own the car and have an oustanding credit card balance. The bank knows it's money is tied to a tangable asset, the credit card company does not, and only knows that you owe them X amount of dollars for whatever reason.
I guess it could depend on your situation, but I don't think it's an overall good idea.
I could edit that, but it gets the point across.
Originally posted by: SampSon
I think I posted in a thread about this on another forum. I think I have it handy.
Always read that fine print with the credit card companies. You could be limited in what you can xfer and also the APR could change depending on their policies.
Putting the car loan on your credit card could affect you negatively in a few ways.
Having a debt like a car loan, or mortgage looks better on your credit report than a high revolving credit card balance.
If the transfer amount to the credit card is close to your total credit limit (on top of it being a long standing revolving balance), then that looks worse on a credit record.
Your car loan is a lump sum loan at a certain dollar amount, amortized over the life of the loan, it's not a line of credit, so you have more security knowing that loan is locked in until the principle is completely paid off, you don't have anywhere near such security with a credit card line of credit.
If something happens in your life and you cannot pay the loan off, then you are in better standing with a lein on your item, rather than an outstanding and revolving line of credit. If the bank wants to repossess the car and close the loan, you're in better shape than if you outright own the car and have an oustanding credit card balance. The bank knows it's money is tied to a tangable asset, the credit card company does not, and only knows that you owe them X amount of dollars for whatever reason.
I guess it could depend on your situation, but I don't think it's an overall good idea.
I could edit that, but it gets the point across.
Originally posted by: isekii
dont you still get hit up with the finance charges ?
Saving that $1,000 could cost you on your credit rating. Personally I would just stick with the secured auto loan and let it look good on your credit.I agree it's risky, but it would be nice to save around $1,000 on interest. I would only transfer around 8k, so even if for some reason I screw up, I'll BT that amount again to Citibank, who has a standing offer of 4.99% for life with no requirements.
That's a point I forgot to mention.This deal stinks. You have to buy stuff and that stuff never gets paid off so you're going to accrue interest on the two purchases each month. Only the no interest part of your bill gets paid. That's how they trick people into signing up and making money off of them. Read the fine prints.
