Best Credit Card for Buying a Car

When it comes to making a big purchase like a car, finding the best credit card for buying a car can make a huge difference in terms of savings, rewards, and financing options. Although many dealerships prefer cash or financing, using a credit card for part or all of your car purchase can be a smart move if you’re well-prepared. Whether you’re aiming to earn cash back, save on interest, or gain extra perks, certain credit cards are better suited for major purchases like a vehicle. This guide breaks down the top credit card options, what to look for in a card, and how to navigate the dealership’s policies to make the most of this method.

[Related: buy tradelines from us or read the “Resources” section below]

What to Look For in the Best Credit Card for Buying a Car

Choosing the right credit card for buying a car depends on several factors, from interest rates to rewards. Here are the key features to consider:

1. Low or 0% Introductory APR

For a large purchase like a car, one of the most attractive credit card features is a 0% introductory APR on purchases. This allows you to pay off the balance interest-free within a certain period—often 12 to 18 months. This kind of offer essentially provides a short-term, no-cost loan, giving you time to spread out payments without racking up interest.

Why It Matters:

A 0% APR can be beneficial for buyers who prefer to avoid high-interest auto loans or dealership financing. With this type of offer, paying for part (or all) of the car over several months becomes much more manageable. Plus, without an interest burden, each payment goes directly toward the principal, making it easier to pay off the balance faster.

2. High Credit Limit

To use a credit card for buying a car, you’ll need one with a credit limit that meets or exceeds the price you’re willing to pay upfront. Not all cards come with the high limits needed for a vehicle purchase, so reviewing your card’s limit or requesting a credit increase might be necessary before heading to the dealership.

Why It Matters:

Having a credit card with a high enough limit allows you to cover a larger portion of the car’s cost. However, keep in mind that using a large portion of your credit limit can impact your credit utilization rate, which could temporarily affect your credit score. Opting for a high-limit card helps mitigate this impact by keeping your utilization ratio more manageable.

3. Rewards and Cash Back Programs

Rewards cards can be a smart choice for buyers who want to earn back a percentage of their car purchase in cash back, travel points, or other rewards. While you may not find specific bonuses for auto purchases, general rewards and cash back cards can still offer significant value. Look for cards that offer at least 1.5% to 2% cash back on all purchases.

Why It Matters:

For a big-ticket item like a car, even a small cash back percentage can lead to considerable rewards. For example, on a $10,000 purchase, 2% cash back would yield $200—a nice bonus to offset some of the cost. Just be sure you’re able to pay down the balance before interest accrues, as rewards may be offset by interest fees if the balance isn’t paid off promptly.

Top Credit Card Recommendations for Buying a Car

Each of these credit cards offers unique advantages that make them some of the best options for a car purchase.

1. Chase Freedom Unlimited®

The Chase Freedom Unlimited® card offers 1.5% cash back on all purchases, including large expenses like cars. This card often comes with a 0% introductory APR on purchases for the first 15 months, which makes it ideal for anyone planning to carry a balance temporarily.

Key Benefits:

• 1.5% cash back on all purchases
• 0% APR for 15 months on purchases
• No annual fee

Best For:

Buyers who want a simple, flat-rate cash back program and a 0% APR offer for up to 15 months.

2. Citi® Double Cash Card

The Citi® Double Cash Card provides a generous 2% cash back on every purchase: 1% when you make the purchase and another 1% when you pay it off. Although it doesn’t always offer a 0% APR on purchases, this card’s ongoing high cash back rate makes it attractive for big purchases.

Key Benefits:

• 2% cash back (1% when buying, 1% upon payment)
• Potential for balance transfer options if needed
• No annual fee

Best For:

Buyers focused on maximizing cash back rewards and those with the ability to pay down their balance quickly.

3. Wells Fargo Reflect® Card

The Wells Fargo Reflect® Card offers one of the longest 0% APR introductory periods available, lasting up to 21 months on purchases. While this card doesn’t offer rewards, it’s a top choice for those who prioritize low interest over perks, providing ample time to pay off a big purchase interest-free.

Key Benefits:

• Up to 21 months of 0% APR on purchases
• Minimal fees and no annual fee

Best For:

Those needing an extended period to pay off their car purchase without incurring interest fees.

4. Bank of America® Customized Cash Rewards Credit Card

This card offers 3% cash back in a category of your choice, which could include purchases that align with your overall car-buying experience, such as online shopping for accessories or even travel-related expenses for long-distance car pick-ups. It also offers 0% APR for the first 15 months on purchases.

Key Benefits:

• 3% cash back in one selected category, 2% at grocery stores and wholesale clubs
• 0% APR for 15 months on purchases
• No annual fee

Best For:

Those looking for a customizable rewards card that can also provide cash back beyond the initial purchase.

How to Use a Credit Card for Buying a Car Responsibly

Using a credit card for car purchases can be financially savvy if done carefully. Here’s how to use this approach wisely:

1. Know the Dealership’s Policies

Some dealerships do not allow full payment by credit card due to high transaction fees. Before planning to use a credit card, confirm with the dealership if they permit credit card payments for the entire car price or if they limit how much you can charge. Many dealerships will cap credit card payments at $5,000 to $10,000.

2. Avoid Carrying a Balance Long-Term

While a 0% introductory APR can make it tempting to spread out payments, be sure to pay off the balance before the promotional period ends. High interest rates that kick in afterward can quickly outweigh any benefits gained.

3. Monitor Your Credit Utilization

Large purchases can impact your credit utilization ratio, a key component of your credit score. Try to avoid maxing out your credit card entirely, as this can affect your credit score and potentially impact other borrowing opportunities.

Conclusion

Choosing the best credit card for buying a car comes down to understanding your goals, whether it’s to take advantage of low APR offers, earn rewards, or both. Cards like the Chase Freedom Unlimited® and Citi® Double Cash Card are great options for buyers looking to earn cash back on a major purchase, while the Wells Fargo Reflect® Card offers an impressively long 0% APR period for anyone needing extra time to pay off their car. No matter your choice, remember to pay off the balance on time to make the most of the perks without facing high-interest charges down the road.

Resources

The following is a list of resources to start learning about tradelines. We have a list of tradelines for sale, and a tradelines FAQ. Also various posts about tradelines, and a chart of tradeline prices from competitor sites. Finally, a contact form to ask further questions.

Please feel welcome to ask any questions below.

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