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Loan vs 0% credit cards
Hello.
I'm sure there's loads on this board about the pros and cons of 0% credit cards already.
Anyway, I've recently made a big purchase (a car) and assumed that a credit card wouldn't be accepted or that the surcharge would be so hefty as to make a loan the better bet.
However, when I checked with the car dealer the surcharge was only 2% for paying by credit card. Shifting this around a on 0% cards until it is paid has got to be better than a loan (the best rate I could find for a loan was 5.7%.
Just goes to show that it pays to ask even if you think you know the answer.
I guess this is only good advice if you've got the discline to get the money shifted before the full credit card interest rate kicks in and if the subsequent 0% cards you shift the remaining balance to don't charge to much for the transfer.
May be of use to someone so thought I'd post it.
I'm sure there's loads on this board about the pros and cons of 0% credit cards already.
Anyway, I've recently made a big purchase (a car) and assumed that a credit card wouldn't be accepted or that the surcharge would be so hefty as to make a loan the better bet.
However, when I checked with the car dealer the surcharge was only 2% for paying by credit card. Shifting this around a on 0% cards until it is paid has got to be better than a loan (the best rate I could find for a loan was 5.7%.
Just goes to show that it pays to ask even if you think you know the answer.
I guess this is only good advice if you've got the discline to get the money shifted before the full credit card interest rate kicks in and if the subsequent 0% cards you shift the remaining balance to don't charge to much for the transfer.
May be of use to someone so thought I'd post it.
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