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re: Using a Credit Card as down payment on car
Posted on 7/18/14 at 6:02 pm to LSU999
Posted on 7/18/14 at 6:02 pm to LSU999
quote:
Using a Credit Card as down payment on car
Looking at purchasing a new vehicle in the next month or so. Read Will Cover's guide on car buying. It got me thinking about putting money down on my CC. I would get points for it and I would pay the card off the month I made the down payment. Card has I believe a $15,000 limit. I would put $10,000 down.
Would this be a bad idea concerning my credit or credit score?
Are there any other cons to doing this?
The one pro is I get points on my credit card which results in free money to spend later on.
Thanks
Daveramsey.com
1
Posted on 7/18/14 at 6:21 pm to Double Oh
quote:
No debt other than house note.
Don't need Dave Ramsey.
Just getting some info and trying to play the CC system. Will be paid off within days of charging.
Posted on 7/18/14 at 6:25 pm to LSU999
Yeah, ignore that Dave Ramsey shite.
If someone will let you put something on your credit card and you can pay it off with no interest, do it!!
If someone will let you put something on your credit card and you can pay it off with no interest, do it!!
Posted on 7/18/14 at 6:26 pm to LSU999
quote:
Just getting some info and trying to play the CC system. Will be paid off within day
gotcha
Posted on 7/18/14 at 6:29 pm to LSU999
This thread has gone on way longer than I expected...
Your credit utilization will go out of whack for the 15 minutes it takes you to pay off the card, then it will go back to normal. Every dollar you otherwise planned on putting towards a downpayment, use your credit card and then pay it off.
Your credit utilization will go out of whack for the 15 minutes it takes you to pay off the card, then it will go back to normal. Every dollar you otherwise planned on putting towards a downpayment, use your credit card and then pay it off.
Posted on 7/18/14 at 7:17 pm to LSUFanHouston
I tried to game the system and it bit me in the butt. My brother was in a bad place and needed a car for a "new job" but didn't have any money. He had some insurance money coming from a settlement. I paid $15,000 for a used car, put it on a cc (no service charge) and figured I would cover a couple of months interest until his insurance money came in with the miles covering the interest. He ended up quitting his job, selling the car and gambled away the insurance money. Took me nearly a year to pay off the card.
tl:dr you can buy a car on a cc without a service charge, brother is a deadbeat, i am an idiot
tl:dr you can buy a car on a cc without a service charge, brother is a deadbeat, i am an idiot
Posted on 7/18/14 at 8:13 pm to islandtiger
Christ, that's rough.
Posted on 7/18/14 at 8:19 pm to islandtiger
Yeah that's bad luck. Can't predict that. Can only expect better. Sorry you have to deal with that. I have a brother that's owed me money like that for years too. I've just written it off. He pays me a bit here and there annually. Still best friends and love the guy, but I learned a hard lesson.
This post was edited on 7/18/14 at 8:21 pm
Posted on 7/19/14 at 1:38 am to islandtiger
at least your brother saved you a lot of money in the long run... you've got a good excuse to never give him another dime.
Posted on 7/19/14 at 11:27 am to LSU999
I'm a dealer and I don't typically allow more than 2k on a credit card. We get eaten up by fees.
Posted on 7/19/14 at 11:58 am to TigerSaints318
I was told only 2k could be put on my card on the last new vehicle I bought. Just did it cash because it only got me like $20 in points.
Posted on 7/19/14 at 12:20 pm to KG6
$20 in points is $20 in points. I'll take them as I can.
Posted on 7/19/14 at 12:50 pm to Joshjrn
I read the rules on my CC and it doesn't have any kind of restrictions like we are discussing here, but it looks like it would be about $100 in points. If they would allow it at dealership, I will do it. If they don't, oh well.
I thought it would be a lot more points with that kind of purchase, but apparently I am wrong.
Thanks again for the responses.
I thought it would be a lot more points with that kind of purchase, but apparently I am wrong.
Thanks again for the responses.
Posted on 7/19/14 at 1:43 pm to reb13
quote:
They probably won't let you.
Lucy bought a new Mitsubishi Eclipse for 20K all on a Visa card before I met her. They'll let you do it if you have a job. I had to take her to the bank and get them to consolidate the loan from 18 percent down to 6. She paid it off in 2 years with zero help from me. She learned her lesson about spending. But occasionally she needs a tutorial and a firm spanking.
Posted on 7/19/14 at 5:26 pm to LSU999
This is great because the more you spend on the car, the more reward points you get. So by haggling you wind up with less points. Just pay sticker price.
Posted on 7/20/14 at 8:35 pm to TigerSaints318
quote:
I'm a dealer and I don't typically allow more than 2k on a credit card. We get eaten up by fees.
can't afford to take the hit on fees if someone drops 30+ on a car? A few hundred to me isn't worth losing a customer
Posted on 7/20/14 at 8:54 pm to LSU999
The dealer will insist that you pay the "swipe fee" on the card that merchants are normally charged. If this is less than than you stand to gain from rewards, it's a good deal.
Without knowing any of the particulars I kinda sorta doubt this is worthwhile even if you pay off the card tomorrow, but you could prove me wrong.
If you can pay it off quickly this should not impact your score. Frankly, if you can come up with the cash that fast you might want to look into balance transfer options that don't cost an arm and a leg, you may be able to transfer the car loan balance for less than the swipe fee.
But probably the best deal of all is to simply agree to the best dealer financing offer you can get - and pay it off the next day.
Without knowing any of the particulars I kinda sorta doubt this is worthwhile even if you pay off the card tomorrow, but you could prove me wrong.
If you can pay it off quickly this should not impact your score. Frankly, if you can come up with the cash that fast you might want to look into balance transfer options that don't cost an arm and a leg, you may be able to transfer the car loan balance for less than the swipe fee.
But probably the best deal of all is to simply agree to the best dealer financing offer you can get - and pay it off the next day.
Posted on 7/21/14 at 8:19 am to LSU999
You can ignore that guy, pretty much every one of his posts include "Dave Ramsey"
He's one of those people that can't think for themselves
He's one of those people that can't think for themselves
Posted on 7/21/14 at 8:22 am to Zach
quote:
They'll let you do it if you have a job.
What does having a job have to do with it?
Posted on 7/21/14 at 9:00 am to yellowfin
I'm also a dealer and welcome all money. A few hundred dollars is not worth someone walking out and going down the road.
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