Buy a Car with a Cash Advance?
by Scott Bilker |
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
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