Should You Make a Car Loan Payment With a Credit Card?

Posted: Monday, April 18th, 2016

If you have a balance transfer offer from your credit card, or you have a low rate, you may be tempted to use it to pay off your car loan. But is that a good idea? The experts at Green Light Auto Credit looked into it and the truth is, it depends on your situation. We’ve gathered together some of the best information we found. Use it to help you decide whether making a car loan payment with a credit card might be a good option for you. Check it out, or refinance using our convenient finance application.

 

What You Should Know Before You Make a Car Loan Payment with a Credit Card

Like any financial decision, there is good and bad that can come from making your car loan payment with a credit card. Knowing the risks beforehand can help you make an informed decision.

  • Unsecured Loan. A big benefit is that your car will no longer be collateral, so you won’t lose it if you miss a payment.
  • Adjustable Rates. On the downside, if you don’t get the debt paid off before the promotional rate ends you could end up paying much more in interest than the original car loan.
  • Extra Fees. Balance transfers generally have a transaction fee attached. This adds to your debt and may even cancel out the low-interest savings.
  • Increased Debt. If you’re transferring money because you’re having a hard time making your loan payments, or you’re trying to merge payments, it could be a sign of financial trouble.

Assess your budget before making any changes to your payment plan. Be sure that making your car loan payment with a credit card won’t move you in the wrong financial direction.

Let Green Light Auto Credit Help You Get the Credit You Deserve

For quick and easy financing even if you have less than perfect credit, come to Green Light Auto Credit. Our counselors can help you understand your options. We’ll review your budget, calculate a payment you can live with, and get you the financing you deserve.

Get the Credit You Deserve at Green Light Auto Credit

Contact the experts at Green Light Auto Credit at (800) 200-5551 to find an office near you. We’ll help you decide if it’s appropriate to pay off your car loan payment with a credit card, as well as show you other options available to you and help you get the financing you need without the hassle.