My wife and I are looking to get a new car soon as our current car is starting to fall apart. We’ve spent a fair bit on repairs the last few years and have had another mechanical problem pop up recently.
The car we are looking to purchase is ~$47000. We should be able to pay $17000 cash, and put the rest on a credit card with a limit of $30000
This credit card has a 2 month interest free period, and we wouldn’t be able to pay this off in that time frame without selling some shares, however, paying $30000 off over 12+ months is very doable for the both of us.
Which brings me to balance transfers - I didn’t even know until recently that these credit card balance transfer offers were a thing, and seems that some have little or no fees, and give you 12+ months to pay it off. Assuming that we have no issues getting approved for one of them, this would mean a more affordable repayment plan of $2500/month for 12 months, instead of having to cough up $30000 over 2 months.
Given my situation do you think charging our current card $30k, then applying for a balance transfer would be a good option for us? Have we overlooked some sort of catch? Also, maybe a dumb question, but is there any kind of requirement to cancel our current card after doing a balance transfer?
Thanks in advance.