|
 Dear
Terry,
I want to buy a new car and will pay cash. I also have a credit card that rewards airline miles for every dollar spent. My plan is to buy the car using the credit card and immediately send a payment to the credit card company for the full balance. Is there a pitfall I'm missing, such as a as credit card interest hike when I exceed a certain credit line percentage?
-- Tom
 Dear
Tom,
There shouldn't be any pitfall with your credit
card, as long as you don't exceed your credit
limit and you pay it off immediately. However,
depending on your credit card agreement, you may
be liable for at least 30 days' interest when
you pay it off.
You're far more likely to have trouble
finding a dealership willing to let you charge
your new car on the credit card. That's because
the dealership pays as much as 3 percent to the
credit card company on every transaction. That's
an additional 3 percent profit they would lose
on such a big-ticket sale.
In my experience, some dealerships will allow you to put a portion of a new car purchase on a credit card, but not the whole cost.
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