Should I pay off my car with a low interest credit card to save money? Would this make sense?
I only have about 1-1/2 yrs remaining to pay off my car which amounts to $10,650.00 and the interest rate is about 12% . Should I just stick with my bank note? I figure I could pay it off faster and at a lower interest rate if I were to put the balance on a credit card.
Even if you could get a lower credit card interest rate, that rate typically only lasts 6 months or so. After the initial teaser period, the interest rate would usually go up to 18% or 20% or more, depending on the card and your credit.
Unless you know that you can get a lower credit card interest rate for as long as you’ll be paying off the car, and you know that you won’t start using the credit card for other things, I would stick with the car loan.
- try this credit card, it has lower rates. I personally use it.