is it a bad idea to use a credit card to buy a car?
June 11th, 2010 | 
Author: lily asked:
i’m interested in buying a car from a friend for 1700, would it be a bad idea to buy it with a credit card?
why or why not?
if it is, where else could i possibly get a loan for that amount?
will a bank do it?
bad credit car loan
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bad credit car loan
Generally, you’d pay more interest by making the purchase with a credit card.
You can apply for auto loans at banks or credit unions. It would definitely be smart to investigate those options vs. putting a car on a credit card.
bad credit car loan
Most credit cards will charge a much higher interest rate for whatever you put on it. Even if you have a low rate now, if you are ever late on any other payment they may raise your rate.
Consider a bank or credit union for a much better loan rate. If you have decent credit they may finance the car, depending on age and condition. Otherwise, you might be able to get a signature loan.
Before you buy the car, have it inspected well. Even from a friend, it may not be as good as you think.
I would never put a car on a credit card.
bad credit car loan
It’s only a bad idea if you have any kind of apr that is higher than what a bank will give you. Lots of dealerships will even arrange for you to get a loan through a bank directly with little interaction on your part, however it’s never really a good idea to pay a friend with credit. For one thing, the issue of trust is always on the table, both for you and your friend. If you miss a payment, your friend will get jumpy. On the other hand, if someone steals your number at some point, you are more liable to blame them for it and this can ruin friendships really easily.
Generally speaking though, unless you have superior credit, most credit card APR’s are about 10%-13% if you are really young and have a steady job. I’ve seen some as low as 7%, however car loans can be alot cheaper than that. It’s simply a matter of seeing what the bank would offer you. They’re very helpful, and you shouldn’t be worried about simply dropping by to ask a few questions. Just don’t let yourself get railroaded into anything set in stone until you’re ready for it.
The best approach for something as cheap as that though is a payment plan or just straight out cash, if the car is going to cost you less than 2k.
bad credit car loan
is that friend going to pay you back? i wouldn’t buy one for a friend, but that’s just me. $1,700 is low. why isn’t your friend buying this? or getting a loan? a credit card is going to charge high interest, so i wouldn’t suggest it.
bad credit car loan
Hi……that depends on your interest rate on your Credit Card. Chances are, since you dont have $1700 in cash, you dont have very good credit. People with good credit usually have some cash. If you did buy the car with your CC, how fast could you pay it off? The sooner the better. Because, if your interest rate is very high, your gonna pay a big penalty for using your CC for a big purchase. I myself had a problem last year………i knew i was doomed for eventual ruin with my CC’s. My bills were getting higher, and i still had good credit, so i decided to loot my CC’s for as much as i could. I went on a little spending spree. I bought a new home stereo i knew i could never afford, a bunch of tools i knew i could use in the future, lots of clothes, took a $4,000 cash advance, and a vacation to Hawaii. Then i went and bought a car on my CC for $1700. The CC’s companies shut me down, i made a few payments, and filed for bankruptcy. I was just discharged last month, it cost me $1,000 for a lawyer but i got chapter 7, meaning i dont have to pay anything back. Now, i am not saying you should do this, my credit is ruined for up to 8 years. But, i can survive on cash now, and i do. I already own my house and land, and they cant take your primary residence away from you. CC companies are RICH!!! They make their money charging ppl alot of interest, month after month. I have a friend with a good job, he’s a pharmacist…….they gave him all kinds of credit!! He eventually bilked and looted them for $82,000 worth of services……..i didnt get nearly that much,…all i can say is…i wish it was me!!! LOL!!! Good Luck!!!
bad credit car loan
Using a credit card PERIOD is bad.
bad credit car loan
Does your friend accept credit cards? You would not want to get a cash advance on your card because the interest on that money would be very high. You didn’t mention the make, model, or year of the car, but a $1700 car probably wouldn’t qualify for an auto loan. If you belong to a credit union, you might be able to get a personal loan for that amount.