Can I use USAA Credit Card Checks for Car Payment?

[Anonymous]

I recently received checks for both my USAA cards. I have 0 interest on both cards for the next 12 months I believe. Can I use these for Car Payments? Lol.

I believe these are for balance transfers or what else am I going to use them for?

[Anonymous]

Unless you're in some kind of short term financial bind that wouldn't be a good idea. You can use them for whatever you want... even cash to yourself but the minimum payments have to be paid and the balance has to be paid before the 12 months or you'll be charged interest (assuming the checks are 0 interest for now which I've known them to be for me in the past with other banks.)

[Anonymous]

Thank you for your reply. Would you be so kind to explain further? You say I can use them for whatever I want but it’s not a good idea? Why isn’t it a good idea? If there is no penalty why wouldn’t I. I can pay 2-3 months ahead.

I’ve got money to pay regardles and at 0% interest it seems like an intelligent move. Not a money crunch. Just analyzing various strategies. I’ve got the rate advantage card so I’m not losing out on points.

[Anonymous]

Are you planning on paying the payment twice... once with cash and again with the checks... then paying the cc off prior to the 12 months?

The bad idea comes in when you cant pay the car payment and the minimum monthly cc payment at the same time and then another problem if you cant pay the cc in full when your 12 months is up and it starts charging interest which I'll just assume is higher interest than the car interest.

Also if you plan on paying toward the car with a check in addition to regular payments you'll need to look at your contract to see if you can use that money directly toward principle and not interest. If you're allowed to do that per the contract you'll probably have to call the car loan company and tell them the payment was for interest or better yet send a letter with the payment and watch and make sure it goes to principle only.

[SouthJamaica]

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@Anonymous wrote:
I recently received checks for both my USAA cards. I have 0 interest on both cards for the next 12 months I believe. Can I use these for Car Payments? Lol.

I believe these are for balance transfers or what else am I going to use them for?

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You should read the fine print carefully. Such checks would either be cash advances or balance transfers, and are likely to have a fee, even if there is no interest. Plus you will still have to make payments on the USAA accounts.

[Anonymous]

I can see paying the principle down with the checks and paying the cc off by 12 months but that's a gamble because you never know what changes life is going to throw your way.

Also, If that's your goal then you're not paying your car payment ahead... you're paying your principle down faster.

[Anonymous]

Gotcha. Thanks for the additional info. I’m not worried about the money. Was just wanting to double check that I can do this and I believe you answered my questions.

Greatly appreciated.

[Anonymous]

Good point south jamaica... there is most likely about a 3 percent fee for using the checks... I didnt think of that.

[Anonymous]

SJ - I owe like $10k. I’m just going to pay it off and use my USAA card with some cash and close out the auto loan. I’ve got other installments so it shouldn’t effect my scores. There is a 3% fee cash advance. Is that what these checks are considered? Cash advance?

[Anonymous]

I just looked at the 3% to make the payment I want is like $20.36 😂. Not a big deal.