I want to buy a used car. My FICO score is 765, but I really don't want to apply for an auto loan because I do not think the Loaners will approve any loans since the car I want has over 100,000 miles on it. My Bank Of America credit card has a limit of $25,000 limit on it and I have no debit/charges on it. The car will be just over $10,000. If I transfer that amount from my credit card to my checking to pay for the car, BOA will give me 0.99% APR until December 2009, then it will jump back to 8.99%. During this time however, BOA states it can raise my APR to 27% for no reason and without notice. I know Suze Orman always says to try not to have credit card debit, so that is why I am not sure what to do.
My question is: Should I just buy the car with my credit card to avoid auto loan denials, or search for a lender who is willing to approve an autoloan?
Depending what kind of car it is and what the book is, banks will still lend on it if it's not to old.
I use to have a lexus with over 100k miles and my credit union had no problem lending on it with good credit, which you have.
Ok big question:
WHY DO YOU WANT TO PAY $10,000 for a 100,000 mile used car.
What is so special about it?
Based on that response we can look at your situation better.
PS SUZE ORMAN IS A MILLIONAIRE -YOU ARE NOT.
IMHO, I would get an auto loan for a number of reasons.
1. An auto loan would be fixed, whereas the ccc could rate jack you at their will thus costing you more money.
2. Point wise. Your fico score will drop with 40% uti(10k/25k) on a credit card which will cost you about
Thank you for all your helpful replies.
The car is a 2005, so it's not too old. I asked BOA about a loan for it and they quickly said they don't finance cars over 100K miles. Really they are the only ones I asked. I did not know that my score would drop by having high credit card debt, thanks for the heads up. I guess I will try to find a lender who is willing to look over the miles on the car.
Anyone recommend a good lender that may be able to finance such a car?
Thank you again.