Buying a card with a credit card?finding for Debt Consolidation Help
I'm about to buy a car for around $14,000. I'm thinking about putting
it on my American Express to get the points, and then getting a debt
consolidation loan to immediately pay off the balance. Does this make
sense? Would a debt consolidation loan's interest rate be higher than
an auto loan?
Also, where are some good resources for low interest rate loans?
You might find a dealer who will accept the down payment on a
credit card, but you're not likely to find one who will accept the
entire car payment. They don't make much this way, since the card
company keeps a portion of the money for themselves (this is how they
make money).
If you pay $14,000 via the card, American Express may keep 10%
for themselves (I don't know what the actual % is. 10% is just a
figure I pulled out of the air that's easy to deal with). In this
example, that's $1,400 that the dealership won't get.
While I've not used a debt consolidation loan, I would presume it
would include any debt owed to a bank or automotive finance company.
You could still pay the car off that way, but you wouldn't get the AE
points, of course.