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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.


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 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.


What is the difference between a credit card and smart card?

Credit cards are an application of smart card.Credit cards are either smart card or magnetic strip card.A smart card is a card which have an IC chip to process the data/ Smart card have the capability to process the data.


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.


What is the difference between a Platinum card and a regular credit card?

The major difference between a Platinum credit card and a standard credit card is that with a standard credit card credit limits are lower than what they would be with a Platinum credit card. Interest rates will differ as well.


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.


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.


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.


What company has the lowest interest credit cards?

Interest fees vary depending on the credit card company. Most companies apply interest based on your credit score and credit history. To obtain a lower interest rate, increase your monthly payments or make payments more frequently. The more payments you make the lower your interest will be.


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 are the advantages of credit card consolidation?

Credit card consolidation consolidates all of ones debt. Credit consolidation makes it easier to pay off ones credit card debt with a lower interest rate than most credit card companies.


What is a consolidation credit card?

A consolidation credit card is a credit card someone will pick to use as their sole credit card for everyday expenses which typically has the lowest interest rate or the best benefits such as cash back or miles rewards programs. Also, if someone has other credit cards with higher interest rates, they can often transfer balances and "consolidate" them onto a single credit card with a lower interest rate, therefore lowering their monthly payment, costs and in essence, making the card a "consolidation 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.


Where can a low interest credit card offer be found?

I have had great luck with credit karma but often the better your credit score is the lower your interest rate offers will be. If you re perceived as high credit risk your not going to get a low interest rate.


Where are the best credit card rates in the nation?

Credit card rates are not based on geographical location,but are based on individuals credit rating. The higher the rating, the better(lower) the interest rate.


What is a brief description of credit relief?

Credit relief is basically doing whatever one can to lower there debt in credit cards. By choosing a lower interest credit card it will assist in avoiding this issue to deal with.


What is an advantage of having an interest rate credit card?

The advantages of having a credit card with an interest rate is it helps build one's credit faster. The higher the interest rate of the credit card, the higher the credit score.


Is credit card is a smart card yes or no?

NO


What is the interest on an express credit card?

The interest on an express credit card is 8.7%. They are not a very good alternative to a regular credit card such as a visa or mastercard because the interest is very high.


Lowering A Credit Card Payment?

Lowering credit card payments can help save money every month. This can be an important step in controlling expenses for a household. One of the first steps in lowering credit card payments is to call the issuing credit card company and ask for the interest rates to be lowered. Lower interest rates can mean lower monthly payments on accumulated credit card debt. Many times credit card companies will lower interest rates after a number of payments have been made on time to reward long term customers. Once rates have been lowered it is important to not continue to accumulate new debt.


Can you pay off a higher interest loan before lower interest one on your credit card?

Somewhere in the fine print of your agreement with a credit card, they clearly specify that your payments will be always applied to lower interest rate loans first, and anyone who has a credit card must have agreed to these conditions. Unfortunately, very few people read these lengthy and wordy agreements. Remember that you must continue to pay the minimum on the lower rate loan for your credit record to be in good standing. If possible, move the higher interest debt to the a different, lower rate card. This way, you may save a lot of money.


What is the Vanquish credit card terms of service?

The Vanquis credit card is a card for customers in the UK. Terms of service is that you must pay back what you borrow on it, in monthly payments and the interest rate on credit purchases is no lower that 19.94%.