cancel
Showing results for 
Search instead for 
Did you mean: 

Down Payment on CC?

Established Contributor

Down Payment on CC?

Is it a bad idea to put a down payment on a credit card? I'm talking about $4500 on a $5k limit card. I would wait till just after the $0 balance reports, buy the car, make a payment for half the amount nearly immediately, then pay off the last half less than a month later, probably before the card even reports a balance. 0% APR right now anyway. There is the bonus of getting the points too. 

 

I've put $1,500 on an AMEX for a car before, but that was only a small part of the down payment.

Message 1 of 4
3 REPLIES
Valued Contributor

Re: Down Payment on CC?

I bought a truck once, $6,000 down on my American Express card.  Finance guy said it was the fastest he had ever seen a chanrge go through.  Got my points and paid it off a couple days after it posted to the account. 

 

The down side is I got a FR a few weeks later, wasn't an issue (was before the tax transcript requests, I had to send in bank statements to pass) but they told me at the time it was the trigger.

Starting a whole new chapter
Message 2 of 4
Valued Contributor

Re: Down Payment on CC?


sccredit wrote:

I bought a truck once, $6,000 down on my American Express card.  Finance guy said it was the fastest he had ever seen a chanrge go through.  Got my points and paid it off a couple days after it posted to the account. 

 

The down side is I got a FR a few weeks later, wasn't an issue (was before the tax transcript requests, I had to send in bank statements to pass) but they told me at the time it was the trigger.


Well, we know one way to trigger a FR!

 

As long as it's getting paid, especially if it's before the statement cuts, I don't see the issue.  You're using the card for its purpose.

  • Current: EQ FICO 706, TU FICO 701, EX FICO 706 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $36,700
  • Inquiries (12 Months): EQ 2 TU 1 EX 1 | Most Recent: 1/21/2014
Chase Freedom $9500
DCU Visa $10000
Capital One QS $2000
AMEX BCE $3000
Lowe's CC $8500
WalMart CC $3100
BOA Platinum $600
AMEX Gold NPSL
Message 3 of 4
Valued Contributor

Re: Down Payment on CC?

LEARNED SOMETHING NEW! I should have done this! I didn't think they did that! Lol.

As of 2017, rebuilding...
Message 4 of 4