Hi,
I currently have about $14,000 left on my car loan at 5.5% interest and I pay $400 per month.
I am getting several 0% balance transfer credit card offers, and I am wondering if I can partially (~$6000) transfer my auto loan to this card and still pay $400 per month. My idea is to avoid paying interest.
I understand that after the 0% period ends I will have to find another card, and for that reason only I don’t want to transfer the whole amount.
Do you think the partial transfer is possible?
Absolutely but I’d only transfer as much as you could afford to pay off during the 0% term. Otherwise it’ll turn into a much higher rate than you’ve got now and you’ll end up paying high interest while you try to juggle between low rate cards.
You also need to account for the balance transfer fee, they’re usually 3% of what you’re transferring and cap out as low as $75 or up to $150. Make sure the 0% for the term saves you more than the balance fee or you’re wasting your time.
You could do this, but it’s not a good idea..
If you do this make sure that you mark the car loan payment as “Principle only” and make this as an extra payment, otherwise they will use this as principle and interest.
Your monthly payment will remain the same….
as for putting this on your credit card, the 0% transfer offers are usually short term, and if you miss a payment, or the term ends, the whole thing comes due immediately…. with 20-25% interest….