Bad Idea to Pay off an Auto Loan with a Credit Card
A Credit Article Contributed by Mistie Cauley
Credit Cards are a Bad Idea for Paying off Auto Loans
If you have an auto loan, it is a very bad idea to pay that loan off with a credit card! If your loan is getting close to being payed off, do not be one of those people who go ahead and pay it off with your credit card. This is a very bad idea for any one. The interest you where charged with your loan is already added on to the pay off amount. If you pay off the loan with a credit card you will be charged interest again from the credit card company.
Why would you want to be charged interest twice on the same loan? I do not want to. If you do not get the amount you have charged to your credit card, then you will just keep incurring more interest charges every month. The lenders get you with the interest, you have surely heard this before. We do not like the interest that was charged with the loan to begin with, so why ask for more interest charges? You can save extra money every month to pay off that loan with out more charges.
No one wants to get charged more then necessary for the same loan.
Auto Loans Payed for by a Bad Credit Card
A bad credit card is one that you have a large interest rate on and may be a high annual fee. These credit cards are bad just for general use, why use this horrible credit card to pay off an auto loan? You will be charged outrageous interest if you do. There is also the chance of going over your balance limit if you can not pay off the charged amount very fast. This is also a good why to mess up your credit score if it all gets too be too much to pay for.
Why use a interest incurring credit card for paying off an interest charged loan? Pay with cash and you will not be charged extra interest.
Paying off an Auto Loan with a Credit Card Could Make Your Credit Bad
If you want to make your credit score go from good to bad, then you can pay off your auto loan with your high interest credit card. Doing this is a good way to mess up your credit. You have interest charges on your auto loan and interest charges on your credit card purchases. The interest charges can pile up to the sky before you realize it. Then you can not get out of the debt. Sad story for many. Bad credit is not some thing that any one wants.
If you want your auto loan payed off fast, do not get out the credit card. You should find ways to save the cash to pay off that loan. You will not be charged extra interest charges if you pay by cash. You can just pay off the loan and move on.
