Can you pay off a car loan with a credit card?
"I got a credit card with a $15,000 credit limit and 0% interest for 24 months.
My car loan balance is $11,000 with a 6.99% interest rate. I want to pay it off over the next two years.
Can you pay off a car loan with a credit card?"
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Answered on Jul 26, 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.
“You might be able to do this. I you can, it’s a great way to save some money and get bonus points on your credit card.
The problem lies with the lender. Some lenders won’t let you pay off a loan with a credit card while others will charge you a hefty processing fee to do so.
Call your lender and see if they allow credit card payments and ask about fees. If your lender won’t charge you a fee, go ahead and use your card. If they will charge you, see how paying the fee compares to paying interest on the loan. The cheaper option is the ideal choice.”
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