topic Re: Venmo/Pay car loan with credit card? in Personal Finance

Venmo/Pay car loan with credit card?

pinkandgrey — Tue, 18 Sep 2018 11:58:42 GMT

Hey everybody. I've been playing with this idea for awhile now, but I'm not sure if it's feasible. Could one use a 3rd party app such as Venmo or something to put the remainder of a car on a credit card? Have any of you done it? My current car loan has about $8000 left on it and I have a card with an 18k limit, so my utilization would be a little high (all my other cards are well under 9% utilization) but other than that it would be great. I would own the car so I wouldn't have to pay the ridiculously high full-coverage insurance on it anymore. Of course I also considered interest rates before someone mentions THAT elephant in the room. I have a 0% card at the moment (the 18ker).

So is this possible? Have you done it/have any experience with it?

TIA!

Re: Venmo/Pay car loan with credit card?

CCrew — Tue, 18 Sep 2018 12:38:48 GMT

Don't know about Venmo, but I know Plastique will do it. Only careful place you go should be to run a small payment through as a test to make sure they don't treat it as a cash advance.

Re: Venmo/Pay car loan with credit card?

digitek — Tue, 18 Sep 2018 12:56:38 GMT

Just going to throw this out there...I just got a check for $15,500 for a car that got totaled in an accident that was not another drivers fault, but was almost nothing the driver could've done to not wreck the car. First thing I thought was "oh **bleep** was I dumb and trying to save a few bucks when I setup the policy for this car?!?!?!"...thank goodness I was not and paid for full coverage.

Unless the car isn't worth much or you could afford to replace it easily, full coverage is probably worth it. There are a million things that can happen that aren't technically your fault or "nothing you could do about it" scenarios.

The idea to use 0%BT to pay it off is a good one, should save you a few bucks on interest even if you decide to keep full coverage.

Re: Venmo/Pay car loan with credit card?

Anonymous — Tue, 18 Sep 2018 13:49:50 GMT

Until someone without insurance totals your car and you're still paying $8,000 on a heap of scrap metal. Not a good idea!

Re: Venmo/Pay car loan with credit card?

pinkandgrey — Tue, 18 Sep 2018 15:20:50 GMT

Thanks for the input, everybody! I will say, however, that my question isn't whether or not I should carry full insurance. Let me worry about that one. My question is whether or not I can/should use a 3rd party app to pay off the car on a CC. My credit union doesn't allow direct CC payments.

Re: Venmo/Pay car loan with credit card?

pinkandgrey — Tue, 18 Sep 2018 15:22:25 GMT

@CCrew wrote:
Don't know about Venmo, but I know Plastique will do it. Only careful place you go should be to run a small payment through as a test to make sure they don't treat it as a cash advance.

Thank you for answering the question and disregarding the insurance what-ifs LOL. Have you used Plastique for this type of scenario?

Re: Venmo/Pay car loan with credit card?

CCrew — Tue, 18 Sep 2018 15:57:13 GMT

@pinkandgrey
Thank you for answering the question and disregarding the insurance what-ifs LOL. Have you used Plastique for this type of scenario?

I didn't use it, but I looked into it after a news article where some enterprising couple used it to buy a Tesla. I was actually looking at a scenario where I was going to pay off a car loan in order to get clear title so I could much easier sell a car on the market, then PIF the credit card with the proceeds. Same scenario where the loan was with Chase and they won't accept a CC as payment. What I was trying to do was get out of a higher interest car loan that was almost 3 years old.

At the end of the day between the negative equity in the payoff, and the 2.9% Plastique was going to charge It was actually financially more feasible to trade the car against a car with a high rebate/low interest loan given my credit is hugely better than 3 years ago. At the end of the day I rolled $4k worth of rebates *and* got a 3.74% loan which made the Plastique path "Plan B". I know it's not the same scenario as you trying to get a lower insurance cost, but when you consider it at the end of the day it's all about how much $ is going out of budget to own the car. I'm older than dirt with a pristine driving record so insurance seems to be the same no matter what I buy.

Re: Venmo/Pay car loan with credit card?

pinkandgrey — Tue, 18 Sep 2018 17:04:12 GMT

Ok, so thanks for all the advice/suggestions from everyone. I looked up Plastiq and apparently Amex can't be used for car payments. I was planning on using my BCE for it, so no go anyway. Oh well. My credit will thank me LOL

Re: Venmo/Pay car loan with credit card?

Anonymous — Wed, 19 Sep 2018 01:36:57 GMT

Personally, I would caution against it. Unless your current Interest rate is so high that it makes a difference, by the time you add the fees etc. You'd likely not be ahead in anything.

Re: Venmo/Pay car loan with credit card?

Anonymous — Fri, 21 Sep 2018 04:07:19 GMT

Last year I paid off my remaining car loan of amount somewhere around $7k using Bank of America Balance credit card (if I remember the name correctly). There was $0 balance transfer fee and I had 0% APR for 12 months which is still going on. I paid off my credit card in few months and then product changed it to cash rewards card since that card was useless. Overall, I didn't save much on interest (only $65) by paying off my car loan one year before its end date.

Re: Venmo/Pay car loan with credit card?

taggl00 — Mon, 24 Sep 2018 01:16:04 GMT

If you can pay down your $8,000 loan within a year after transfering it to a CC, why not just keep the loan open and pay it off early too?

Re: Venmo/Pay car loan with credit card?

xaximus — Mon, 24 Sep 2018 13:07:29 GMT

I think OP wants to pay off the title holding company so that they can release the title, which will allow the user to carry whatever insurance (liability or full coverage). When a title is held by a bank, they require full coverage.

OP - I wouldn't take that risk of putting that kind of an amount on CC for 2 reasons. Unless you are known to do that (large amounts) - that might cause some issues. I have seen where a family member attempted to purchase some furniture on their CC and ended up having to deal with the fraud dept. Nearly took a week to sort it out. If you do still want to do that, I would suggest breaking the $8k down into 2-4 parts. That may work out better for you.