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Cash Advance
by Scott Bilker
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
Scott Bilker is the author of the
best-selling books, "Talk Your Way Out of
Credit Card Debt", "Credit Card and Debt Management", and "How to be
more Credit
Card and Debt Smart". He is also the Editor and publisher of the FREE
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