I owned a new 2007 Honda civic and have a car loan on that for an amount of 21K. This loan is for 5 years. I had been paying the installment about $340 per month without fail for the past 9 months. The current interest reate is 8.5% and I have a co-payer since i was not having credit score at that time.
I am getting some credit card offers now. Is there a way to save some money?
Generally credit card interest will be higher. If you can get an account with a large credit line and do a transfer with a loe rate for the life of the transfer you might be able to save money.
if you own a home, a home equity loan might be a solution, the interest rate would be about the same but it would be tax deductible.
Join a Credit Union, and check their rates. With 9 months under your belt, the CU might offer a lower rate. If not today, perhaps a few months down the road. Good luck.
I owned a new 2007 Honda civic and have a car loan on that for an amount of 21K. This loan is for 5 years. I had been paying the installment about $340 per month without fail for the past 9 months. The current interest reate is 8.5% and I have a co-payer since i was not having credit score at that time.
I am getting some credit card offers now. Is there a way to save some money?
Go visit a Credit Union - you should have established some decent credit by now. See what type of a break you can get on your interest rate and your payment. If this doesn't work, it may be time to check the KBB value on your car at New Car Prices | Used Car Values - Official Kelley Blue Book Site and see if getting a new vehicle makes sense. I would not recommend transferring any of your current balance to credit cards.
Now I recevied an offer from Soverign /Mastercard with 0% APR till December 2008 if i accept a balance transfer or cash advance. This is for one year.
Just curoius to know what is the risk in it if i take this? I am sure that no financial organization would offer anything without a profit in it..
If i accept this means i should start pay EMI(monthly payment) to this mastercard after one year?
Please suggest..
Pandy
Quote:
Originally Posted by ScottGem
Generally credit card interest will be higher. If you can get an account with a large credit line and do a transfer with a loe rate for the life of the transfer you might be able to save money.
if you own a home, a home equity loan might be a solution, the interest rate would be about the same but it would be tax deductible.
First, it would depend on the offer. Most balance transfer deals require that you make a minimum monthly payment. And if you are ever late with a payment, the interest rate reverts to the normal rate.
First, it would depend on the offer. Most balance transfer deals require that you make a minimum monthly payment. And if you are ever late with a payment, the interest rate reverts to the normal rate.
Thank you!!
I am ready to make monthly payment and my current monthly payment is $350 for another 4 years.
If I accept this balance transfer then can i save some money in this regard considering the fact that i need not pay interest for another one year. But then how this mastercard make profit? So far I was paying my intallment in time..and i would do the same in future.
The idea for them is they get a customer and if you don't pay the balance in full prior to the end of the promotion period the interest gets jacked up. You need to know what the interest will be. But I would NOT do this unless you can pay off the balance before the promotion ends. Either by taking another loan or whatever.
They are BANKING on the fact that you might be ONE day late at some point in time. THEN they raise your interest rate WAYYYY beyond where it is now. The next thing, is that if you haven't paid ALL your car payments by the end of the first year, the interest rate will go sky high on the balance that you owe. Of course, you WON'T have paid off all your car loan in that time, and you'll be screwed.
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