Can I use a check provided by my credit card company (1.9%) to pay off my car loan (4.9%)?

The rate from the credit card is fixed for 1 year. The auto loan still has 4 more years on it. However, I get these checks all the time.

Can I use a check provided by my credit card company (1.9%) to pay off my car loan (4.9%)?

You can do it, but I would be cautious.

1) there might be a fee of 3% or more to use the check (on top of the 1.9% financing)

2) you might not have enough credit on your card to cover the amount of your car.

3) if you do the cash advance, then if you had been paying the card in full each month to avoid interest, you will be charged interest from the FIRST DAY IT SHOWS ON YOUR ACCOUNT. You loose the grace period for new purchases on that card as long as there is a balance, even it if is only from the cashed check.

4) After 1 year, the rate on the credit card will go up (probably much higher than 4.9%) Unless you pay off the card within the year, you will end up paying a much higher interest charge.

5) Just because you%26#039;re getting lots of offeres today for 1.9% checks does not mean that you will definately get lots of offers 11 months from now for 1.9% checks. You might be stuck with the standard rate on your credit card for cash advances (probably closer to 20%).

If you want to take a chance, and there%26#039;s no check fees, or cash advance fees for using the check, you can go for it... but with all that could go wrong, I wouldn%26#039;t recommend it.

Good luck.

I hope this helps.

Can I use a check provided by my credit card company (1.9%) to pay off my car loan (4.9%)?

Sure as long as your limit is not exceeded.

What is the fee associated with using the check?

Can I use a check provided by my credit card company (1.9%) to pay off my car loan (4.9%)?

You need to read my post on basically the same question:

http://answers.yahoo.com/question/index;...

I got burned doing the same thing.

Read my experience here:

http://www.loansourcesforbadcredit.com/d...

JP