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Credit
Card Cash Advance
Buy a Car with a Cash Advance? by Scott
Bilker
Scott Bilker is the author of the best-selling
book "Credit Card and Debt Management."
He is also the Editor and publisher of the FREE
DebtSmart® E-mail Newsletter (http://www.debtsmart.com).
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Hi Scott,
Read your article Consider Financing Your Next
Car with a Credit Card and as you asked I'm commenting
on same. The logic of the 4.9% at 6 Months makes
sense, BUT is it a reality? You said use your
credit, WRITE A CHECK, isn't writing a check tantamount
to a CASH ADVANCE? I believe it is with most credit
card companies. If it is, then aren't you looking
at a much higher interest rate? Example, one of
my credit cards has PURCHASES @ 18.90, while CASH
ADVANCES are at 23.00! And, any monies paid against
the balance ALWAYS goes to the lower interest
rate! Any comment? BTW, I enjoyed the article
and you have a great website! Very interesting,
informative & helpful "stuff!"
--Mel
Answer
Mel,
Thank you for writing!
You're correct that you would probably have to
write a check. And yes, it's a cash advance, however,
I have many, many, many, no-fee, low rate, check
offers. I have one I just used for 2.99%, no-fees,
which is far better than any used car loan I could
get otherwise.
I said in my article to "consider" using
your credit card. If it doesn't make sense in
your case, then don't do it, but many people may
be able to get a better deal this way.
Talk to you later.
--Scott
Reply
I just wanted to see if my train of thought process
with regard to interest rates (cash vs purchase)
was correct. BTW, know where I can get a credit
card with a $75,000 credit line, I want to buy
a used Ferrari! Keep up the great work, love your
website!
--Mel
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