When you use a credit card to make a purchase, you pay interest on your balance. If your credit score is over 670, you can expect to pay between 20% and 22% interest rates on your credit card. With that in mind, you should only make a car down payment with a credit card if you can pay off your entire account balance before the next due date.
Can you use a credit card to make a down payment?
Many dealerships let you use a credit card for your down payment, but charging a few thousand dollars to your favorite card may not be in your best interest. Putting money down on a new or used car can help you reduce your monthly payments and offset depreciation. You can absolutely use a credit card to make your down payment if you’d like.
Do you need money for a car down payment?
If you're in the market for a new or used vehicle, you'll need money for a down payment, which is a portion of the car's total cost that you pay upfront. Down payments can be made with a personal check, cashier's check, or physical cash, and some dealerships also allow credit card payments.
