What Is A Car Credit Card?

As difficult as it may seem to believe, there are such things as a car credit card. It is an improper term that describes the possibility of buying a car using a credit card. What is important to know up front is that it is highly unlikely that you will be able to buy a new car with a credit card. However, you might find used car dealerships that accept credit card payments.

The very first thing that you should know about a car credit card is that some dealerships accept a credit card to pay for a car entirely or just the down payment. Each dealership has its policy. A good practice is to call the dealership and ask about payment options before visiting them. Try calling anonymously so that they will not know that you plan to finance or using a credit card when you step into the dealership.

Why Would Anyone Use a Credit Card to Get a Car?

The interest rate of a regular car loan is lower than the APR of a standard credit card. However, if you have a high credit score, manage to get a credit card with a 0% APR and a reasonable limit, you could pay for the car partially without paying any interest. This also makes it easier to manage your finances as you could pay off the minimum if you cannot make the full payment in one month.

If you do not have a credit card with a 0% APR, it may not be worth buying a car using a credit card. And, if you still do not have the option to pay for a car in full with a car credit card, you will need to either pay the rest out of pocket or get a car loan. A good piece of advice is to try to avoid getting an expensive used car. Putting too much debt on your credit card can affect your score.

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