Re: Credit card loan Vs Car loan

Posted by 0bserver (64.12.96.205) on July 19, 2002 at 08:48:29:

In Reply to: Credit card loan Vs Car loan posted by Mahan on July 19, 2002 at 01:23:45:

The whole thing involves knowing the value of money over time. That are some great offers out there but, before you use one to buy a car do some math. The average minimum payment on a credit card is 2 1/4% of the avearge daily balane per month. If you just make minimum payments, you'll be paying for that car for 8-10 years or longer. To make it a great deal, you need to be able to make hefty enough payments to pay it off in 4 or 5 years.

I saw a report of a fellow who got a 4.9% fixed rate for life from Citi with a $25K credit limit. He had roughly that amount left on his mortgage at over 8%. He did the transfer but, he is paying enough every month so the payoff date will coincide with the orginal payoff date on his old mortgage.

If you are buying a used car, a low fixed rate card would be ideal because because rates on older cars are usually much higher than on new cars.

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