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Pay off car loan with 0% interest credit card?

New Visitor

Pay off car loan with 0% interest credit card?

I recently opened a credit card with a $7000 limit and 0% interest for the first 12 months through BB&T. I also have my car loan through BB&T with a balance of about $3000. I noticed when making my most recent car payment that the credit card was listed as a payment option. I am confident that I would be able to pay the car balance off within the next 5 months. Moving that debt to the credit card would save me a little on interest. Would that be a good option?

7 REPLIES
New Contributor

Re: Pay off car loan with 0% interest credit card?

Might hurt you score if you don't have other installment loans. 

Might hurt your score until you pay down card due to high utilization.

 

New Contributor

Re: Pay off car loan with 0% interest credit card?

Might cost you big money if it counts as a cash advance and there is a fee for cash advances.

"Nobody had a credit card when I was a kid. No one had credit card debt. But these big companies and banks wanted to know how to get more money out of people - get them charging things." - Michael Moore
Valued Contributor

Re: Pay off car loan with 0% interest credit card?

+! above, i just wouldn't bother, but if you really want to do it...why don't you do less?

 

$2000 on the card - thte card would not have a high UTL compare to $3000 and you could still save some $$ on interest

$5000 left on the loan - You would still have the loan to help scores

 

I would leave it alone, but an option is there.

 

 


Valued Contributor

Re: Pay off car loan with 0% interest credit card?

I guess the answer is 'it depends'.

 

What is the interest rate on your auto loan? Would it save you a lot per month?

 

If the rate is high you could try out making a small payment on the CC. Ensure there is no cash advance fee or fee for using a CC.

 

Finally, you would like to keep your CC utilization below 30% (better yet 9%) to help keep your score intact.

 

So if the interest rate on the car is 18% and no fees, I would consider using the 0% offer...

Super Contributor

Re: Pay off car loan with 0% interest credit card?

Many people in this forum have had issues in the past by moving debt around 0% balance cards.  I would would just stay on course and continue to pay the autoloan off.

10/17/2017 FICO: EQ 829 TU 830 EX 826
Valued Contributor

Re: Pay off car loan with 0% interest credit card?

You generally can't BT to the same creditor

Chasex3/PenFedx3/NFCUx2/BofA/BMO/AMEX x5(4 revolvers +Platinum)/CapOnex2/DCU/Blispay/Cabelas/BBVA/Fifth Third/Banco de Brazil/BB&T/HSBC/Atira/Commerce Bank/State Farm Visa........I have them all. Except Barclays. They suck. And Sync. They suck worse! And Citi,, because I Have 9,000 Inq.
In the 520-530 range in 12/2015.... Currently EQ747/TU758/EX744
NFCU & PenFed are my best friends!!

In 3/2016 I had a $1800 fully secured CapOne QS. And that was it.. Current CL $247,000 (plus my auto and RV loans)
Established Contributor

Re: Pay off car loan with 0% interest credit card?


alcham04 wrote:

I recently opened a credit card with a $7000 limit and 0% interest for the first 12 months through BB&T. I also have my car loan through BB&T with a balance of about $3000. I noticed when making my most recent car payment that the credit card was listed as a payment option. I am confident that I would be able to pay the car balance off within the next 5 months. Moving that debt to the credit card would save me a little on interest. Would that be a good option?


The interest is so minimal at this point that I'd just throw extra $$ at it where it lies and pay it off in 5 months there.

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Nov 2017: EQ 683/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $46k total revolving