Consider Financing Your Next Car with A Cash Advance |
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Writing a check is nothing less than a cash advance and there can be many no-fee and low rate check offers. There is one for 2.99% and having no fees and this is certainly better than any other car loan that you can get. It might be logical to use a 4.9% at 6 months but this not a viable reality. Even if you use your credit and write a check, it is nothing other than a cash advance. At least most credit card companies think so. If this is the case, doesn't the whole thing involve a much higher interest rate? Look at it this way, if one of your credit cards charges 18.9% for purchases and cash advances are at $23.00, where is the advantage, especially when any payment made against the balance always goes to the lower interest rate? You must always analyze your specific situation and work out the option that would be most favorable to you. While purchasing a vehicle, even if your seller is a private party, the problems you would face would be the same that you may encounter at a dealership. If you have a 0% deal on your credit card, it is very good. Although dealerships accept credit card payments, they do not allow the entire purchase of the car through your credit card. They may permit you to meet your down payment through the credit card but they would not allow you to use the credit card for the entire payment. The reason for this is that they do not want to take on the burden of paying the merchant fees for accepting the card, which could be at least 2%. The dealer would, therefore, ask you to use a personal check or a bank check. It would also be advisable to find out if your 0% deal is good for cash advances. To do this, you can call your credit card bank and inform them that you are going to write yourself a check and deposit it in your account, as long as 0% rate holds. If they decline, you can ask them that if they (the bank) made a direct deposit into your checking or savings account, would the 0% rate then be applicable. The whole idea is to get the money into your account at the 0% rate and preferably without any cash advance fees and then you can write a bank-check to the car seller with that money. If the bank still does not agree, they may approve the idea of your transferring the balance from another card at the 0% rate. This will not amount to a cash advance and then you can check with you other credit cards to find out if you can get a cash advance, with no fees. If so, you can write a check with the second card, deposit it into your account, buy the car, and immediately call the 0% bank and do a balance transfer. The car will be yours at 0% by the time the dust settles. The one safeguard that you need to be careful about is the repayment of the 0% deal. You must make it a point to pay off before the 0% deal expires. You must ensure that you are not late in paying the 0% deal as the offering bank may hike your interest rate to dizzy heights such as 26% as a penalty. To work out the amount of equity that is available on your home, take the estimated value of the home and multiply it by 80%. Take this total and subtract the total amount of the first mortgage balance, and this gives the amount that can be borrowed on a home equity loan. The minimum loan is $7500 and the maximum is $500,000. The various factors that you should look into before deciding on the type of home equity loan are: Is the money needed at one-go or in stages? Should payments be varying every month? How soon is the money required and the time period for paying off and the comfortable level of monthly payment? |
