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Using a Credit Card as down payment on car
Posted on 7/18/14 at 3:31 pm
Posted on 7/18/14 at 3:31 pm
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
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
13
Posted on 7/18/14 at 3:32 pm to LSU999
They probably won't let you.
Posted on 7/18/14 at 3:36 pm to LSU999
quote:
Would this be a bad idea concerning my credit or credit score?
You have a 15K limit. You have 10K in cash. I assume you have no other stuff on this card or if you do, you pay it off each month.
Why in the heck are you worried about the one-month, at most, impact?
Go ahead and do it.
Posted on 7/18/14 at 3:46 pm to LSU999
More than Likely they will charge you additional 3% for using CC to cover their transaction cost.
Posted on 7/18/14 at 4:23 pm to LSU999
I asked this question a couple of years ago when buying a Honda. Was told we could buy using a credit card. We had the cash to pay off right away but I wanted the 2% cash back we would get. Later we were told we could only put a deposit of 10% or 20% (don’t remember the exact %) on the credit card. We ended up not buying from that dealership because they clearly lied to us.
Posted on 7/18/14 at 4:44 pm to LSU999
I just did $5k on a CC earlier in the year at All Star at no charge. I wouldn't have paid a fee. I would've walked out. If I'm buying a new car and you won't eat the $100 CC processing payment, kiss my arse.
Eta: I say I would've walked out, but my wife would've been pissed and made me go back
Eta: I say I would've walked out, but my wife would've been pissed and made me go back
This post was edited on 7/18/14 at 4:49 pm
Posted on 7/18/14 at 5:06 pm to LSU999
They may limit the amount you can put down and if they allow you to go over the normal amount they allow on a credit card be prepared to eat the 3% merchant charge over the normal amount they accept.
Posted on 7/18/14 at 5:16 pm to LSU999
I would do it if they let you. Why not make a few $$.
Posted on 7/18/14 at 5:30 pm to LSU999
quote:You'd better check that. Some cards exclude points/perks for automobile purchases.
I would get points for it
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
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 7/19/14 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 7/20/14 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 3:18 pm to LSU999
quote:
Using a Credit Card as down payment on car
I did this and got a bunch of reward points on my credit card. I had the money, so I just paid it off as soon as it was posted to my account.
It sounds like it just depends on your limit and the dealer. I just put $3,500 down.
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