Let’s be honest, in most cases if you want to buy a car with a credit card it’s not a smart idea. Credit cards have some big risks attached to them and in most cases, it’s not a great idea to make a big purchase with one (like a car), especially if you can’t make the full payment.
That said, some people use credit cards to make big purchases like a car. There might be some circumstances where the use of a credit card to make the purchase could make sense for you.
So, Can You Buy a Car With a Credit Card?
Yes, you can.
While it’s not common practice, in some circumstances you might be able to buy a car with a credit card. The dealership that you are making your purchase with will have to allow this, and your credit card limit will have to be high enough for the purchase.
There are also some circumstances where you might be able to make a partial payment on a credit card. For example, the dealership might allow you to pay a chunk of your new car via credit card. Again, this will also depend on your bank limit.
But just because you can doesn’t necessarily mean that you should. So, do you want to buy a car with a credit card?
If, and only if, you have the money to pay off your credit card immediately, is purchasing a car on your card possibly advantageous. But this is really only the case if you happen to have a great points card.
A purchase like a car can really jack up your points fast, so if you’re someone who uses points or could use points, this might be a great opportunity.
You’ll also want to make sure that you’re purchasing the car with a no interest offer so you won’t have to start paying interest on your credit card as well because that can be a huge disadvantage.
Buying a car with a credit card can have long-lasting negative effects on your credit, so not everyone should purchase one on credit. At the end of the day, this is going to be a personal financial decision.
That said, credit cards have high interest rates and if you’re not able to pay the full amount off right away you could be paying through the roof for your car over time. If you think car loan interest is bad, then you should see what it looks like when you make the purchase on your credit card and have to pay it back over time.
Buying a Car with a Credit Card
At the end of the day, the decision to purchase a car using your credit card is your own. If you’ve got the cash, you want the points, your credit limit is high enough and your dealership will allow you, then you might want to do it.
Otherwise, I’d personally say skip it.
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