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Is it smart to pay off a car with a credit card that has lower interest rate?

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Wiki User
2005-05-16 17:19:17

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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