* Here are a few things to keep in mind if you're thinking about using a credit card to pay for a car:
* There may be fees. Some credit cards charge a transaction fee or cash advance fee for using them to make a large purchase, such as a car. Check your card's terms and conditions to see if there are any fees associated with using it to buy a car.
* You'll need a high credit limit. To be able to use a credit card to pay for a car, you'll need a high enough credit limit to cover the purchase price. If your credit limit is too low, you may not be able to use a credit card to pay for the entire car, you can make several smaller payments with your credit card.
* You'll need good credit. Dealerships and lenders are more likely to accept a credit card if you have good credit.
If you have bad credit, you may have limited options
- **Compare dealerships.
** Some dealerships charge extra card transaction fees on car purchases or don't even allow people to complete payments in this way, others don't. Call car dealerships ahead of time to double-check.
- **Check credit card fees:
** Read your card issuer's policies about cash advance fees on card purchases so there are no surprises
when the bill comes
- Consider interest.
If card carries a high - APR and cannot pay in full right away, consider whether interest will make the overall cost prohibitive as opposed to other financial choices such as personal loan, dealers and manufactures incentives on car loans..
