If you’re looking for a new car odds are pretty high you may also be looking to finance that new car. Obviously it would be great to be able to buy a car with cash outright so you don’t have to pay any interest on a loan. Have you ever thought about buying a car on a credit card? Well there’s definitely a way to finance a car purchase with a credit card and pay 0% interest! You’ll just have a higher monthly payment.
First step to this is getting yourself set up with a financing card, or a card that will give you 0% APR on all purchases for an introductory period of time, usually 12-20 months. The Chase Slate card (which is no longer available) use to be prime for this. It offered 0% APR interest for 24 months on purchases and balance transfers plus if you made a balance transfer in the first 60 days you’d have a 0% balance transfer fee.
If you have a 750 credit score or higher with an income of $40,000 it’s not far fetched to think that you wouldn’t be able to get an $18,000 credit limit. Once you have that card you could do up to an $18,000 balance transfer and have the cash in the checking account of your choosing in 2-3 days. No charge. Just be sure to have 20% of the transferred amount for your first payment. When I put the Cubs playoff tickets on my American Express with 0% intro APR they upped my minimum payment to around $2,000 after the first statement locked.
So after the first payment of $3,600 the remaining balance on your card is $14,400 that must be paid off over the next 23 billing periods. Payment of $627 a month for the next 23 months is nonnegotiable or you’ll be paying upwards of 20% in interest after the introductory period.
The best cards that are available right now for a transaction like this include the US Bank Platinum, Wells Fargo Platinum, Citi Diamond Preferred, and American Express Everyday Credit Card.
