Drew Bethel
Screenwriter
- Joined
- Nov 22, 1999
- Messages
- 1,209
Or if this is allowed...
MickeS, that's interesting you couldn't pay with a CC. My parents bought a $30K vehicle a few years ago and split the entire amount between two credit cards.The dealerships I've dealt with will not accept a credit card, either. They would get hit with the 2% (or whatever it is) transaction fee from the credit card company. On a $25k car, that's $500 out of the dealership's pocket.
You might find a mortgage company that would accept a debit card, especially if it was with their bank, but then you wouldn't get the air miles.There are some debit cards now that do offer air miles. I have a Bank of America debit card that gets miles on USAirways.
Todd
The dealerships I've dealt with will not accept a credit card, either.I wouldn't deal with them then. If I had a credit card with a large enough limit to buy a car, and the cash to pay it off the following month, that is exactly what I would do. If the dealership refused, I'd walk.
I would agree that the service fee on the CC would make most banks not offer that option, but you could still do a cash advance (same as using the CC cheques - interest charged immediately with no grace period) and pay with that. The question is whether rewards work on tha cash advances.
If they did, and you had no balance on the card, you could take the cash advance and immediately pay off the card balance, incurring no interest from the CC.
If I had a credit card with a large enough limit to buy a carI do. I don't know why. Every few months American Express raises my limit. It's up to $20k now. Tell me, what the hell am I supposed to do with a twenty thousand dollar limit on a credit card?
what the hell am I supposed to do with a twenty thousand dollar limit on a credit card?A good American citizen would promptly max it out, to "support the economy."
Traitor.
EDIT- seriously, if your credit card limits are a bit high for your requisite income, you may want to ask that they be reduced. They will adversely affect your credit rating, whether you ever use the card or not.
Isn't paying your mortgage with a credit card like paying a loan with a loan?Which is precisely what credit cards are always encouraging you to do with their lower interest balance transfers. If you were to pay off the amount each month and incur no interest as a result, there is no harm to finaancing this way - assuming the plan works that way.
I suspect though that most rewards programs aren't applicable to cash advances, and therefore don't make much sense to use paying for a mortgage.
As for credit limits on cards, Amex just sent me another increase, even though I haven't ever used the card they sent two years ago. I don't see how high card limits could adversely affect your credit rating, so long as all payments are made on time and the accounts are in good standing. In fact, having that credit available should allow you to use it as collateral in the event you want a loan - just offer to shred the card, thereby using your existing credit as a bonus.
I don't see how high card limits could adversely affect your credit ratingBecause it increases your potential debt - some companies look at this in addition to your current level of debt when considering new credit. Having the capacity to rack up huge amounts of additional debt without going through the process of issuing additional cards etc is viewed as a Bad Thing.
I wouldn't deal with them then. If I had a credit card with a large enough limit to buy a car, and the cash to pay it off the following month, that is exactly what I would do. If the dealership refused, I'd walk.I completely understand why a car dealership does not want to accept a credit card, and I have no problem with such a policy. With many vehicles approaching $50k in price, that 2% service fee can cost the dealership $1,000 on such a vehicle. Would you be willing to pay an extra grand for the car for the priviledge of using your credit card? If the dealership will take a check from me, I'm fine with leaving the plastic in my wallet on an item I only purchase once every few years. Besides, you are certainly not getting a better interest rate via a CC than from a car loan, so you need the cash to pay the card off anyway.