Can I Buy My Dream Car with Cash Advance Loans? |
|
There are many attractive cash advance offers in the market today. The intense competition has resulted in dealers trying to outdo each other in terms of interest rates and offers. Though you'll still have to write out a check, there are many no-fees, low rate, check offers available. In fact some are even better than any used car loan available. The logic of the 4.9% at 6 months makes sense. But is it a reality? One way to use your credit is to write a postdated check. But is such a transaction equivalent to a cash advance? Most credit card companies do. Also, cash advance comes with a much higher interest rate. It is possible to get credit cards cash advance that have interest rates that are much lower than the lowest interest rate charged on cash advance. And any payment made will go toward lowering the interest rate. But each person's needs and circumstances differ. So, you must be careful to analyze your specific situation to be sure that it will work in your benefit. They are useful, especially to purchase vehicles. Dealerships often say that they accept credit card payments. However, many will not let you purchase the car with only your credit card. They'll allow you to put your down payment by credit card but not the entire amount. This is because they don't want to pay the merchant fees on the credit card transaction. These fees are usually at least 2%. Therefore, a dealer would prefer you to use a personal check or bank check to make the rest of the payment. A 0% deal on your credit card cash advance makes it convenient for you to make the payment. But you need to find out if your 0% deal is good for Cash advances. One way make sure, is to give your credit card bank a call and tell them that you'll write yourself a check, and deposit it in your account, as long as it's at the 0% rate. If that doesn't work, ask them if they would give you that 0% rate if you made a direct deposit into your checking, or savings, account. The key is to get that money in your account at the 0% rate, preferably without any cash advance fees. Then use that money to write a bank-check to the car seller. If they don't agree to this either, they would probably entertain the idea of your transferring the balance from another card at the 0% rate. This does not qualify as cash advance. You also have the option of checking with you other credit cards companies, to find out if you can get a cash advance, with no fees, from them. If they do, write a check with the second card, and deposit it into your account. Buy the car, and immediately call the 0% bank and do a balance transfer. However, you just need to do one more thing. You need to mark on your calendar, the date on which the 0% deal expires. It is not enough just to mark the date in red on your calendar, you should also make sure to pay off that amount, before they hike your interest rate on your cash advance loan. Also, don't be late paying that 0% deal. The offering bank will then most probably slap you with an extremely high interest rate, as a penalty, sometimes as high as 26%. But before deciding on cash advance loans, there are some things to consider. You should consider what the money is needed for? Should the payments remain the same, or is it better to have varying payments per month? And how soon is the money required and how long to be given to pay it off? How much is a comfortable monthly payment? |
