credit card

My credit score is above average and as a result I get tons of postal mail from credit card companies to sign up. Incentives range from bonus airline miles all the way up to 5% cash back on purchases.

So if I were to buy a car for 15K and charge it all on my card I would get 750 dollars back from the credit card company. This is free money with no effort required.

Sounds like a great deal but there’s a slight problem. Most dealers place a 3K limit on the amount you can put on your card when buying a car. They do this because of the 1 to 2 percent transaction fee they have to pay to the credit card company.

Two percent of 15K is 300 dollars out of their own pockets. There’s no incentive for them to do this for you. Two percent of 3K is only 60 dollars, an amount they may be willing to give up to sell you a car.

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