Can I pay my car loan with a MasterCard?

I want to pay off my car loan with a MasterCard to get bonus cash. Will my lender let me do this?

Answer
Most lenders will not let you pay for a car loan with a credit card like MasterCard. If the lender does allow credit card payments, they will often be subject to a 3% processing fee, which can cancel out any bonus cash you wanted to earn.
If you do find a lender willing to accept a MasterCard payment and the processing charge is less than the MasterCard bonus you’ll get, be on the lookout for prepayment penalties.
This could add a 2% to 4% charge if you pay early—so make sure to align your automatic payments with the lender’s desired timeframe. (This will cost you more interest in the long run, so it may be smarter not to use your credit card at all.)
If you’re looking for another way to earn a bonus on your credit purchases, use your credit card to pay your car insurance bill. Jerry offers flexible payment methods when you switch to a new car insurance policy through the Jerry comparison shopping tool.
Eric Schad
Answered on Oct 20, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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