Should I use a credit card to pay off a car loan?

Answered by Car Loans Expert Eric on March 25, 2021

I'm wondering if I can save money by moving my car loan debt to my credit card.

expert avatar

Eric

Car Loans Expert

“Typically this is a poor idea, but there are certain scenarios where paying off a car loan with a credit card may benefit you financially. Some credit cards offer promotional or introductory periods that provide zero percent APR for nine, 12, or 15 months. So if you have a car loan with a higher interest rate than zero (which is likely), a credit card may save you money.

Keep in mind that a majority of lenders won’t take credit cards for car loan payments. Furthermore, you should make sure you can still pay the monthly amount on your credit card, as most of these promotional interest rates will revert to a rate that’s much higher (usually 20% or more) if you miss a payment. “


Car Loans

Have an insurance question?

Our insurance agents are ready to help you, for free.

Ask your question, it’s 100% free
Recommended
Thousands of customers saved on average $887/year on their car insurance with Jerry
This app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍
user
Gabriella R.
Find savings (100% Free)
stars
4.6/5 Rating on App Store
logos
logos
logos