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Regular Contributor
codesingh
Posts: 245
Registered: ‎12-27-2012
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Pay montly auto loan due with CC

Given that the apr is 0%, util reamains under 10% etc...is it a good idea to Pay montly auto loan due with credit card?

~ 100k in Rev CC. 15k Credit Line. 16.5k Car Loan(@1.7%) Starting scores: 690 EQ (Dec 2012) Mid-year FICO scores April ‘13 Pulled by lenders(Barclays, Amex): TU 747 • EQ 752 • EX 746 • Scores As of Nov 2013: 740 and above across the board.
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pizzadude
Posts: 9,674
Registered: ‎01-28-2010
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Re: Pay montly auto loan due with CC

Does your creditor accept credit cards as a method of payment? Generally most do not do this....
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Regular Contributor
codesingh
Posts: 245
Registered: ‎12-27-2012
0

Re: Pay montly auto loan due with CC


pizzadude wrote:
Does your creditor accept credit cards as a method of payment? Generally most do not do this....

Not sure yet, I haven't tried yet. I do have CCs from all major (mid-major) lenders. Do you know any lender whose cc I try out?

~ 100k in Rev CC. 15k Credit Line. 16.5k Car Loan(@1.7%) Starting scores: 690 EQ (Dec 2012) Mid-year FICO scores April ‘13 Pulled by lenders(Barclays, Amex): TU 747 • EQ 752 • EX 746 • Scores As of Nov 2013: 740 and above across the board.
Regular Contributor
ReaLiLJ
Posts: 143
Registered: ‎09-17-2012
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Re: Pay montly auto loan due with CC

[ Edited ]

Only do this for leverage + rewards.

Leverage: When I know a lot of expenses is coming up and all my cards are paid off and I'm not planning on using them anytime soon, and I know that I don't need a maximum score at the moment so I can carry a balance for one month, (And I can't fork up that car payment) I will change my card due date to the opposite end of car payment date, and pay my car note 2 days right before my statement cuts on my card and that way in return I can get an extra month to pay that 1 month of my car note. (It's confusing but it works) Because now that balance will be on the card, you can pay the minimum the following month, and by the next statement date you can pay off the credit card with no worries, and it will only report that balance on one statement, rather then two.) i.e. my example of leverage.

Rewards Def: I do this with my freedom all day long #REWARDS even though it's only 1 point, after a year all those rewards add up and boom I deposit it and use it for gas hehehe :smileywink: (Since the financial deparment that takes payment will take credit, and doesn't charge a fee for using my credit card)


Oh word so you saying I could of got $50 in free gas if I used my CC for car payments!? :smileyvery-happy:

Come on mannnnnn


-LJ

20 Years & 1 Month Young; Total Income: $53k (Credit History): 1.9 years AAOA: 1.0 years
Fico Scores: Exp: 725 (12/4) EQ: 703 (11/13) TU: 736 (12/6) Total Credit Available: 89k
Wallet: AmEx Plat- NPSL | AmEx BCP $10.5K | BestBuy SC $10k | Duck Card $8k | BoFA CR Plat Plus Sig. $5k | Discover IT $6k | Chase Freedom Sig. $7k | CSP Sig. $5k | USBank Cash+ Sig. $5k | Barclays R MC $5k | Chevron Visa $5k | BR Visa $5k | Walmart Discover $4k | DCU Plat Visa $3k | QuickSilver CR $3k | Macy's Store CC/Macy's Amex $2.5k/$3k | BML $1.2k | Citi Divi Plat Visa $500
Open Loans: Sallie Mae SL: ($5.6k) (Def.) Car Loan (Red Devil FR-S): $20k/33k Remaining -Will Pay Off in 2yrs. Advice Welcomed!
Regular Contributor
codesingh
Posts: 245
Registered: ‎12-27-2012
0

Re: Pay montly auto loan due with CC


ReaLiLJ wrote:

Only do this for leverage + rewards.

Leverage: When I know a lot of expenses is coming up and all my cards are paid off and I'm not planning on using them anytime I soon, and I know that I don't need a maximum score at the moment so I can carry a balance one month, (And I can't fork up that car payment) I will change my card date to the opposite end of car payment date, and pay my car note 2 days right before my statement cuts on my card and that way I get an extra month to pay that 1 month of my car note. (It's confusing but it works) Because now that balance will be on the card, you can pay the minimum, and by the next statement date you can pay off the credit card with no worries, and it will only report that balance on one statement, rather then two.) i.e. my example of leverage.

Rewards Def: I do this with my freedom all day long #REWARDS even though it's only 1 point, after a year all those rewards add up and boom I deposit it and use it for gas hehehe :smileywink: (Since the financial deparment that takes payment will take credit, and doesn't charge a fee for using my credit card)


Oh word so you saying I could of got $50 in free gas if I used my CC for car payments!? :smileyvery-happy:

Come on mannnnnn


-LJ


wo wo wo....hold on man...you too fast on me on here...lol

I have all my cc paid off. I always pay off in full. And as you suggest I do want to use some card of mine to pay my monthly car loan so i can get rewards credit. that's all. i am against using the money in the bank. i wish i can always use one of my CCs.

Ok so charge the monthly car loan payment a couple days before the cc statement cuts, that i can understand. but the real question...how do the cc and the car loan lender look at such transaction? do both parties frown upon using cc for car loan payment?

~ 100k in Rev CC. 15k Credit Line. 16.5k Car Loan(@1.7%) Starting scores: 690 EQ (Dec 2012) Mid-year FICO scores April ‘13 Pulled by lenders(Barclays, Amex): TU 747 • EQ 752 • EX 746 • Scores As of Nov 2013: 740 and above across the board.
Regular Contributor
ReaLiLJ
Posts: 143
Registered: ‎09-17-2012
0

Re: Pay montly auto loan due with CC


codesingh wrote:

wo wo wo....hold on man...you too fast on me on here...lol (Slows down) hahaha

I have all my cc paid off. (Great) I always pay off in full. (Even better**) And as you suggest I do want to use some card of mine to pay my monthly car loan so i can get rewards credit. that's all. i am against using the money in the bank. i wish i can always use one of my CCs. (This is possilbe***)

Ok so charge the monthly car loan payment a couple days before the cc statement cuts, that i can understand. but the real question...how do the cc and the car loan lender look at such transaction? do both parties frown upon using cc for car loan payment? (Yes and No****)


f
**:except for one month if you follow this rule for leverage, you might set off an alarm, as they will wonder if your beginning the always carry a balance past, but no worries after paying it off the following month, and continuing your regular paying off in full pattern that risk will be lifted.

***This is possible as long as your creditor accepts payments in forms of credit. (CC Payments) Over the phone my creditor doesn't but if I go in to where I bought the car and ask my good ole' Pal John from the financial department to run my card and process the payment as credit, he does so with no problem/no questions asked! He just prints me my reciept, I sign and I'm as good as gone with my payment paid. :smileywink:

Tip: Find out if your lender accpets credit. Next ask if they charge a fee. Most people do as they want you to go through moneygram or western union etc. Best bet go into where you bought the card and ask if you can pay with credit, if so will they charge if not your good, if so then leave but in your case if the rewards are worth it, then take your monthly car payment x (x amount of reward points) and calculate how much you get back and then minus that from the fee their charging you and if it's still worth it then hey welcome to the pay your car note with your credit card club :smileywink: (It's not that huge) lol

**** The car payment appears with the dealer name nothing more nothing less for my card, for amex thought that's where you might run into problems only because it appears under transportation and under the vehicle leasing and purchasing! So I don't know how different cards may assign the reward points, but for sure if you have the chase freedom its the way to go as they will just look at it as any other charge you swipe (under that 1% categorey) and I really don't think they frown on it, especially since your paying in full. For amex as well, only if you start to carry a balance and they notice that its always under that categorey when your carrying a balance, that might get you frowned upon but I know they still assign the point :smileyhappy: 
As for the car lender, as long as their paid, they don't care how its charged, they just want their money, and don't care if its cash gain from illegal activity, if your card is maxed out because of the payment, they only care about if its paid or not paid!!! Bottom line: They want their money!

-LJ

20 Years & 1 Month Young; Total Income: $53k (Credit History): 1.9 years AAOA: 1.0 years
Fico Scores: Exp: 725 (12/4) EQ: 703 (11/13) TU: 736 (12/6) Total Credit Available: 89k
Wallet: AmEx Plat- NPSL | AmEx BCP $10.5K | BestBuy SC $10k | Duck Card $8k | BoFA CR Plat Plus Sig. $5k | Discover IT $6k | Chase Freedom Sig. $7k | CSP Sig. $5k | USBank Cash+ Sig. $5k | Barclays R MC $5k | Chevron Visa $5k | BR Visa $5k | Walmart Discover $4k | DCU Plat Visa $3k | QuickSilver CR $3k | Macy's Store CC/Macy's Amex $2.5k/$3k | BML $1.2k | Citi Divi Plat Visa $500
Open Loans: Sallie Mae SL: ($5.6k) (Def.) Car Loan (Red Devil FR-S): $20k/33k Remaining -Will Pay Off in 2yrs. Advice Welcomed!
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Senior Contributor
StartingOver10
Posts: 4,534
Registered: ‎03-06-2010
0

Re: Pay montly auto loan due with CC

[ Edited ]

No, don't get started down this road of putting your car payment on your credit card. Too risky. What are you doing with your income? If you can't make car payments and rent or mortgage payments out of your bank account, then that is the profile of a risky borrower.....just think about it. Don't do it.

Regular Contributor
ReaLiLJ
Posts: 143
Registered: ‎09-17-2012
0

Re: Pay montly auto loan due with CC


StartingOver10 wrote:

No, don't get started down this road of putting your car payment on your credit card. Too risky. What are you doing with your income? If you can't make car payments and rent or mortgage payments out of your bank account, then that is the profile of a risky borrower.....just think about it. Don't do it. +1


I agree as I stated, don't do this unless you *******pay in full every month****** I do this with my freedom (paying in full) have a 4+ year relationship with chase (if that helps, but I don't think it affects the moral of doing this), and my sit down banker said what I was doing is fine so it's only reason I do this :smileylol:. I use to carry balances when I first started my credit journey, and learned the tricks in getting the rewards/ maximum points for my cards, and through my new found knowledge, I always pay in full and only carry that 1% balance with 1 card if I'm about to app spree, or apply for something big. Only carry balances during emergencies/when I rotate my sock drawer cards from time to time.

 

Furthermore, if you really feel that worried you can go to chase or whatever bank your doing this with and have part of your check (in the amount of what your car payment is) direct deposited into the checking account and set up an automatic transfer/automatic payment of that amount to your credit card every month and that should kill off all their worries, and for your sake give you peace of mind knowing that their not worried about you doing this. :smileywink:

Just my 0.02 -LJ

20 Years & 1 Month Young; Total Income: $53k (Credit History): 1.9 years AAOA: 1.0 years
Fico Scores: Exp: 725 (12/4) EQ: 703 (11/13) TU: 736 (12/6) Total Credit Available: 89k
Wallet: AmEx Plat- NPSL | AmEx BCP $10.5K | BestBuy SC $10k | Duck Card $8k | BoFA CR Plat Plus Sig. $5k | Discover IT $6k | Chase Freedom Sig. $7k | CSP Sig. $5k | USBank Cash+ Sig. $5k | Barclays R MC $5k | Chevron Visa $5k | BR Visa $5k | Walmart Discover $4k | DCU Plat Visa $3k | QuickSilver CR $3k | Macy's Store CC/Macy's Amex $2.5k/$3k | BML $1.2k | Citi Divi Plat Visa $500
Open Loans: Sallie Mae SL: ($5.6k) (Def.) Car Loan (Red Devil FR-S): $20k/33k Remaining -Will Pay Off in 2yrs. Advice Welcomed!

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