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In most car loans, a fixed rate and monthly payment will apply. You may have a credit card with a lower rate but if you make only the minimum monthly payment, you will most likely be in debt longer so the lower rate won't help you. It also depends on if your credit card interest is calculated on a daily average balance or compounded. Make extra payments to your car loan to pay less interest. [A average creditcard balance of $11,000.00 at 19.99% with a $100.00 monthly payment can keep you in debt for 29 years].

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โˆ™ 2005-05-16 17:19:17
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Q: Is it smart to pay off a car with a credit card that has lower interest rate?
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Related questions

Why does a person keep transfer credit card balance to another before it catches up with him?

To transfer from a high interest credit card to a lower interest credit card


Where can one find information on the average credit card interest rate?

You can find information about the average credit card interest rate online at websites such as Bankrate and My Credit Union. You can find information on how to lower your current credit card interest rates at the Daily Finance website.


Where can I apply for the lowest interest credit cards?

The lowest interest rates on a credit card are made when the person has a good credit rating. The higher the limit, the lower the interest rate also.


How would you go about converting over from a high interest credit card to low interest credit cards?

First you should run a check of your credit score to see if you qualify for a lower interest rate. If your credit is in good shape many companies are willing to let you put existing debts on a new card with a lower interest rate.


How can you lower your interest rate on credit card?

Your credit score plays a huge role in determining the interest rate that credit card companies are willing to offer you. Generally, the better your credit score, the lower the interest rate you can expect to pay. You may want to get a copy of your credit score, and see if there are any discrepancies or outstanding debts that you didn't know about. If you can fix these problems, your credit score will generally improve over time, and then you can reapply for a credit card with a lower interest rate, or call your credit card company and see if they can give you a better deal with your improved credit score.


How is credit card interest calculated?

Credit card interest in calculated daily. For example, if you have a credit card with 12% apr, you would divide the interest by 12 months. You should always check with your credit card company on how they calculate your credit card interest.


What are some advantages of a 0 balance transfer?

When you have a balance on your credit card, you are paying interest. If you can find a credit card with a lower interest rate and a 0% balance transfer, you will be saving money.


What is the average interest on a USA credit loan?

The average interest on a credit card in the USA is around 20 percent. Depending on how good your credit score is, you will get a better or worse interest rate. If you have very high interest rates but continue to pay your credit card on time the company may lower your interest rate.


What practices by a credit card company results in lower interest charges to the cardholder?

The card company allows a grace period before interest is accrued.


How can one consolidate credit card debt?

One can consolidate credit card debts by rolling them into one lower interest credit card. Many companies offer this service such as such as 'Credit Guard' offer this service.


Can you write off credit card interest on your taxes?

Is there a way to write off credit card interest on corparation credit card?


What is the difference between smart cards and stored-value cards?

The stored value credit card has the credit card information on the magnetic strip. The smart card credit card has the information in the smart card computer-chip.

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