- Sep 30, 2001
Is the way a creditcard charges interest on a balance the same method used when you get a loan on a car? The reason I ask is I'm shopping for a new car and yesterday AMEX sent me these checks in the mail with a 2.9% interest rate till it is payed off. The lowest rate I have been quoted on a 5 year car loan is 5.19%, so I was thinking I could use the AMEX check to buy a car and get a lower rate, but I'm not sure if the interest is compounded the same way. Anyone know?