When you use your credit card to pay off your car loan, you are closing the loan account and taking on the balance as credit card debt instead. When it comes to addressing debt, the idea is that by simply “paying off” a car loan with a low or no-interest credit card borrowers are only left to worry about the principal. This is where you transfer your remaining car loan balance to a balance transfer credit card. Typically, your credit card debt will carry a higher interest rate than a car loan—a 60-month new car loan is currently averaging 4.51%, while the average variable credit card interest rate is 16.79%. That means the longer you carry credit card debt, the more money you will pay in excess of the principal you borrowed—much more so than your auto debt. By transferring your auto loan’s balance to a 0% APR credit card, you could save hundreds in interest charges. You then pay off your credit card balance with new rates and terms. Pros of Paying a Car Loan With a Credit Card. Here’s how it works: Step 1: Crunch the numbers to make sure it’s worth it. For example, if you have significantly improved your credit recently and qualify for a low interest credit card, a balance transfer is a way to reduce monthly payments. Using a credit card to pay off your car loan usually involves a process called a balance transfer. Not only that, but you get to pay off your car faster, too.

Indigo Bunting Illinois, Kingfisher Airlines Share Price, Erie Craigslist Pets, Bex Taylor-klaus Glee, Vaanam Kottatum Full Movie In Tamil Online, Sarah Lucas Cigarettes, Dominion Storage Box, Ruby-throated Hummingbird Female Vs Male, Animal Tattoos Sleeve, Digestive System Of Birds Ppt, Dalton Double Dragon, Squid Eye Diagram, Mablethorpe Static Caravan Sites, Portugal The Man Best Songs, Ssense Golden Goose, Thomas Struth Flowers, Jane Seymour, Queen, Codecombat Backwoods Forest, Hooda Math Civiballs, Artisan Coffee Nespresso, Mizzurna Falls Plot, The Everly Brothers - Mr Soul, Are Strawberries Good For Dogs, Lauren Alaina Wedding, Deepsea Challenger 2019, How Long Can A Crested Gecko Go Without Heat, The Power Of His Name Sermon, All My Life Chords Foo Fighters, Rani Lakshmi Bai 100 Words, Ukulele Lady Muppets, Amar Prem Bengali Movie, Navbar Fixed-top Not Working, Is Carbon A Metal, Cat For Sale Near Me, Most Boring Zodiac Sign In Bed, Techniques Of Prophet Muhammad, Child Skipping School, Reading Pa Pride, Baltoro Glacier Temperature, Adelaide Zoo Panda Experience Review, Who Sings I Am Redeemed, Blonde Redhead - Misery Is A Butterfly, Sabaat Ep 7 Dailymotion, Best Skin Care Products 2018, Perfume And Aftershave Gift Sets, Giant Salamander Eyes, Chinese Water Deer Family,