Is it better to pay car payment with credit card?

Using a credit card to pay a car loan only replaces one debt with another; it doesn't lower your overall indebtedness. The interest rate may be higher on the credit card than on the car loan you're paying off.



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Purchases you should avoid putting on your credit card
  • Mortgage or rent. ...
  • Household Bills/household Items. ...
  • Small indulgences or vacation. ...
  • Down payment, cash advances or balance transfers. ...
  • Medical bills. ...
  • Wedding. ...
  • Taxes. ...
  • Student Loans or tuition.


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A down payment between 10 to 20 percent of the vehicle price is the general recommendation. But if you can afford a larger down payment, you can save even more money on interest payments over the life of the loan.

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7 Things Your Credit Card Company Doesn't Want You to Know
  • #1: You're the boss. ...
  • #2: You can lower your current interest rate. ...
  • #3: You can play hard to get before you apply for a new card. ...
  • #4: You don't actually get 45 days' notice when your bank decides to raise your interest rate. ...
  • #5: You can get a late fee removed.


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