Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

Transferring car loans to credit cards

Because many credit card companies are allowing users to transfer more than just credit card debt to their cards, some Wisconsin residents have started to transfer their car loan debts to credit cards. Turning a car loan into credit card debt can provide some benefits, such as getting a vehicle in the debtor's name sooner and lowering payments, but it is not without a downside.

One of the biggest draws for putting a car loan on a credit card is that many companies are now offering 0-percent interest rates for transfers. This can reduce the total amount owed on a vehicle loan, but only if people pay off the debt before the introductory period ends. If the loan is not paid off in that time frame, people may end up paying a lot more for their vehicles over the long run.

In addition to possibly adding to one's overall debt, putting a car loan on a credit card can also have a negative impact on a person's credit score. Simply getting a credit check can affect a credit rating, and adding a large amount of unsecured debt can also lower a person's score since secure debt involves less risk for the lender.

Some people in Wisconsin who are not able to meet monthly payments may feel compelled to put car loans on their credit cards. They may find it beneficial to speak with a bankruptcy attorney who may explain their rights and options, help them sort out their finances, and recommend courses of action. Bankruptcy attorneys may clarify the complex processes that those seeking to resolve their debts may have to go through.

Source: NY Times, "The Risks of Transferring a Car Loan to a Credit Card," Ann Carrns, March 18, 2013

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.