My plan has been to buy a credit card on my Amex card and then balance transfer to NAB's low fee card that has a 32 month interest free balance transfer (No BT fee as well) for essentially an interest free car loan however I've just realised a kink in my plan. I have a $16k Amex card which I'll buy the car on but I don't think I'd get approved for a $16k NAB card while having this one open. On the NAB application can I write down that the $16k Amex card will be closed? I've already paid the deposit and don't want to be stuck with $16k credit card debt.
Buying a car with a credit card balance transfer
Lith123 on 13/10/2021 - 18:49
Comments
From my limited experience, dealers do accept CC for deposit, and the max value differs from dealer to dealer. Comes down to how desperate they are for the sale, and if the fees for CC is something they can absorb into the margin.
OP has already paid the deposit and looks to want to pay the remainder of the balance with a credit card.
They said I can do it with a 1% fee
Love people that do no research. Highly amusing
If NAB questions it, you would have to provide proof that your Amex is closed (which would be impossible while you still have the balance).
Also, check out this link. You may only be able to transfer 90% of your approved credit limit amount, which means you might need to apply for a higher credit limit for NAB.
As kerfuffle also mentioned, check if your dealer will accept a $16K credit card payment. Many won't, and others will charge you a payment fee that might be a few hundred dollars, depending on the percentage.
They can't demand prior proof of closure - since they are approving AND paying out $16k in order for the customer to actually close the card being transferred to.
So no reason why the OP's plan can't work
I see you've done yourself a mischief
Can you balance transfer through to whoever you're buying it off rather than between cards?
But as previously stated many dealers dont accept credit card payments due to fees
Just Nimble it and move on.
Why wouldn't you wait till you have both cards before you initiate your plan?
In my experience, the car dealership will let you use the credit card but it will be a cash advance. Not good maybe +3% and not interest-free.
In the past I have done this…..
If you offer to pay the surcharge for a card transaction (Amex being higher than Visa/Mastercard) then I don't see why the dealer wouldn't take the card.
That is another 3-4% on top of the $16k though
I was thinking of doing similar but I was going to BT to my empty cards and then just transfer the cash out to an account. Usually you can overpay cards and withdraw without cash advance fees but YMMV.
What makes you think the car dealer will accept your credit card for payment?