high limit credit cards?? buy a car??
 

hey guys,
one of my best friends in college wants to get a car but she cant afford it..

She wants to do this: Get a high limit credit card($5000++) with no APR for 12months, buy a used car, then just pay minimum for the card monthly.

She'll graduate in a few months and she already has job offers and will make good money.. but for now she needs a car in order to get to work and pay her bills..

Using a card with no APR for 12months will be cheaper than financing a car at say 7 or 8%

her credit score is 720+, has only one bank of america card for $2000 and always paid her bills on time..

What credit card do you recommend that has a very high limit?

**when she starts her full time job in may next yr she'll pay off the card**

Why doesn't she just get a loan? I'm not sure but I think that her paying off the load will look better on her credit and put her in better standing with her bank.

auto loans with interest are more $$ than a credit card with no APR

She could do Capital one auto financing for used cars but its like 8% interest and minimum u can get is $7,500. She wants a $4000'ish car.

"hey guys,
one of my best friends in college wants to get a car but she cant afford it.."


...that's not too bad as long as she pays it off before the interest kicks in. either do that or try to find a dealership that has a promo with "no payments until...."

she'll be working full time in may.. the finance company that has basically hired her will pay her enough that she can pay it off in first month...

Credit Cards are always a bad idea. When she doesn't get that job, can't afford to pay it off in a year or whatever, all of sudden she's pay 12% plus on that loan and if she sneezes wrong that rate goes to 20 - 38% and she's fucked.

if worse comes to worst and she doesnt get the job, ill pay the card off for her and she'll pay me back when she gets cash... basically her risk is low..

Most car dealers will not let you pay for a car with a credit card.

Oh..and BTW..if her credit score is 720, she will certainly be able to qualify for a zero interest car loan if the dealer is offering them at that time. Since dealers are now going into "model year clearance" mode, there will be all sorts of financing incentives available.

but u forgetting shes trying to buy a $4000 car not a brand new car..

also which is less:

monthly payment(minimum) on a $5000 credit card balance with 0% apr
or car payment for a $5000 car with no interest..

i think the credit card will be a lot lower.

That's what I was thinking, a transaction for a few thousand dollars isn't something you'd want charged back...

When I purchased a car they let me put down a $100 deposit with my CC, but the balance had to be in cash or bank cheque.

Lets not be stupid about this here. What if something does not work out and she can not find a good enough job, when that interest rate kicks in its going to be bad... VERY BAD!

With the kind of credit she has there are dealerships that offer 0% APR for the entire time of the loan as long as you put atleast $1000 down.

I recently purchased a used car on my line of credit for about 28K. Was simpler than bothering with a car loan, and I can pay it off as fast as I want.

Not a good idea to just pay the minimum monthly. Haven't you seen those commercials with the dude from Starsky and Hutch?

"It'll take you 33 years to pay off that debt!"

:winkwink:

With your line of credit or with a credit card?

As someone who worked in several dealers there is little chance in hell they will let you buy the car on a CC especially not Amex due to the high rate the merchant has to pay.
If they did they would just sucker you to cover there cost of at least 4 to 8%

line of credit?
u guys keep forgetting if shit gets bad ill pay off the card and she'll pay me whenever she gets a job.. shes my best friend but im not willing to buy her a car..

however if you have better ideas than credit card with 0% apr lemme know.

It was the line of credit, secured by my house. Not a credit card.

most dealers will only take a max of $1500 on credit cards too.

Im surprised a car dealer will take a credit card as payment for a car. I can't see the typical 16 - 21% interest rates that CC companies charge as being cheaper than direct financing.
WG

Actually, I am an idiot. I just remembered I transferred the money from my line of credit to my bank account, then sent them a bank draft.

So I guess that is not technically the same thing.

she can get a cc with 0% apr for 12-15months..

Completely different animal. And, using a line of credit secured by your house actually makes sense, since the interest is tax deductible.

With a 720 credit score, you can still get a VERY low rate on a used car.

X, you make a shitload of money, just buy the damn hoopty for her will ya? She'll pay you back when she gets the cash.

lol i have a problem buying shit for girls..

been used plenty times in the past... :(

The one bad thing about her jacking up an instant $5,000 in credit card debt is that it's gonna make her credit score drop down into the low 600s, so she'd better hope that she won't need any credit until May.

I can see the point about just making the minimal payments on a credit card with zero interest, but the thing is that she's not gonna know her limit on the card until after she applies for the card, so it might take her another 1-3 cards to get that extra $3,000 credit that she wants then she's gonna have 2-4 monthly payments of $15-$25 might actually be as much or even more than a bank loan payment.

yeah... thats why i asked for high limit credit cards.lol

bump......

Back when I worked at a Ford dealership they were pretty much giving away 0% loans through FMC for anyone with a credit scores of 650 and higher and $1300/month income.

Finding a dealer to let you put a $4-$5k car on a CC will be very difficult. Just have her take out a car loan with no interest for a year. There always seems to be more than a few companies offering this.

QFT.........

wtf guys, you are discussing financing for a $4k purchase? Just tell her to get a normal car loan, how much interest can she possibly save on a $4k loan?

Some dealerships wont take a credit card on a car purchase since they are stuck with the 2-4% fee, unless you cover that fee ( i know 2 in LA)

At the same time, that is a dumb idea because when get graduates and watns to get a real car, they will look at her credit and say shes screwed for a good rate because she has never financed a car before. I know this because Im going through it right now. I purchased my other car in cash because i didnt want to pay interest. Now Im getting shit for never financing a car so I cant get a good rate (below 9%)

Get the loan for 5 years, it will be hardly anything per month. If she cant afford $200 a month then she shouldnt be looking to buy a car aways

:winkwink::thumbsup

My girlfriend's sister just transferred her car loan onto a credit card that she was able to get 0% for life on all balance transfers. I thought it was brilliant.

you'll be hard press to find places that accept it

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Just do a regular car loan, at 7% for 4k it's not going to be a big deal like $300 a year or something. On top of that your discussing a quick payoff, car loans always have a payoff amount that's only marginally higher ( a few hundred) then whats left on the balance. It's a lot safer and easier to do it this way, no matter how safe you think it is or what is lined up, it's always better to stay away from credit cards believe me I know through experience.

I agree, I think that is brilliant :) I never knew you could transfer over loans to credit cards, I just thought it was other credit card balances, I guess I'm wrong or perhaps it's just certain cards that do that.

credit card suck

Bullshit.

There isn't a credit card company on the planet that offers 0% interest on balance transfers for life.

If there is, tell us who it is.

I've seen promos like that, only thing that he probably didn't say is that they all have at least a 3% balance transfer fee.

it was a bad idea.........you get high interest when you use a credit card.....