Buying a car represents a significant financial commitment, and sadly, it’s generally an investment that depreciates the moment it leaves the dealership.
On the upside, if you finance your car purchase—particularly a down payment—using a credit card, you could earn valuable rewards in the form of points and miles. This major expenditure can also help you meet the minimum spending threshold for credit card sign-up bonuses.
If you’re thinking about using a credit card to buy a car, here are some top card options and important considerations.
Top Cards for Car Purchases
Choosing the right credit card can enhance your rewards on a car purchase, adding value to your spending. Here are several of the best cards for buying a car or making a down payment.
American Express Platinum: Ideal for Significant Purchases
Annual Fee: $695 (details vary)
Welcome Offer: New cardmembers may earn up to 175,000 bonus points after spending $8,000 on eligible purchases within the first six months, although offers can vary and not all may qualify.
Earning Rate on Car Purchases: 1 point for every dollar spent.
Why Choose This Card? The Platinum Card® from American Express has no preset spending limit, making it excellent for large purchases like a vehicle. Although this doesn’t imply you can spend unlimitedly, it adjusts based on your spending habits and credit history. You’ll need to pay your balance in full each month, although you can use the Pay Over Time feature to carry a balance, accruing interest.
For larger purchases, pay off the card promptly to maximize your points.
To discover more, read our full review of the Amex Platinum.
Apply here: American Express Platinum
American Express Business Platinum: Best for High Spenders
Annual Fee: $695 (details vary)
Welcome Offer: Earn 150,000 bonus points after spending $20,000 on eligible purchases in the first three months.
Earning Rate on Car Purchases: 1.5 points per dollar spent on eligible U.S. purchases over $5,000 (up to $2 million per year).
Why It’s Beneficial: Similar to the personal Amex Platinum, this card also offers no preset spending limit and earns 1.5 points per dollar on larger purchases, which can be advantageous if your down payment exceeds $5,000.
For best results, ensure the purchase amount qualifies for the bonus; otherwise, consider a no-annual-fee card offering rewards on standard categories.
To learn more, check out our review of the Amex Business Platinum.
Apply here: American Express Business Platinum
American Express Blue Business Plus: Best for Maximum Points
Annual Fee: $0
Welcome Offer: Earn 15,000 bonus points after spending $3,000 within the first three months, plus a 0% introductory APR for 12 months.
Earning Rate on Car Purchases: 2 points per dollar on the first $50,000 spent each year (then 1 point thereafter).
Why It’s a Strong Choice: This card offers a solid earning rate along with a 0% APR, perfect for financing a purchase and paying it off within the introductory period.
However, keep in mind that it has a preset limit, so ensure availability before making large purchases.
For more details, read our full review of the Amex Blue Business Plus.
Apply here: American Express Blue Business Plus
Chase Freedom Unlimited: Best for Cash Back
Annual Fee: $0
Welcome Offer: Earn $200 cash back after spending $500 within the first three months.
Earning Rate on Car Purchases: 1.5% cash back.
Why It’s Effective: The Chase Freedom Unlimited® allows for significant cash back on purchases, and if paired with an Ultimate Rewards card, it can maximize value further. With a 0% intro APR, you have additional time to pay off your car purchase without incurring interest.
To explore more, read our full review of the Freedom Unlimited.
Apply here: Chase Freedom Unlimited
Citi / AAdvantage Platinum Select: Best for American Airlines Members
Annual Fee: $0 for the first year, then $99.
Welcome Offer: Earn 80,000 bonus miles after spending $3,500 in the first four months.
Earning Rate on Car Purchases: 1 mile and 1 Loyalty Point per dollar spent.
Why This Card Stands Out: Although it offers 1 mile per dollar, it’s particularly beneficial for loyal American Airlines flyers, as it also earns 1 Loyalty Point for every dollar spent, helping you towards elite status.
For more insights, check our full review of the Citi / AAdvantage Platinum card.
Card details are provided independently by The Points Guy and may not have been reviewed by the issuer.
Buying a Car with a Credit Card: FAQ
While utilizing a credit card for car purchases may seem straightforward, here are some vital points to consider.
What’s the Maximum Amount I Can Charge on a Credit Card?
The maximum amount varies by dealership, but negotiation is possible. For instance, I successfully raised my credit card limit from $5,000 to $8,000 at my local dealership.
Do All Dealerships Accept Credit Cards?
It’s advisable to call ahead and confirm with the dealership’s finance manager. Some dealerships may not allow credit cards for full purchases, but often they accept them for down payments.
Are There Fees for Using Credit Cards at Dealerships?
This can differ by dealership; some may apply a fee, while others may not. It’s best to inquire directly with multiple dealerships in your area for clarity.
Can I Make a Partial Payment with My Credit Card?
This depends on the dealership; some may allow only down payments via credit card, while others might allow the entire vehicle purchase.
Do I Need to Pay My Balance in Full?
For cards that offer a 0% interest rate, you can make minimum payments during the promotional period. However, for cards accruing interest, it’s best to pay off your balance to avoid extra charges.
How Does Buying a Car with a Credit Card Affect My Credit Score?
Using a credit card for a substantial purchase will likely increase your credit utilization rate, which may negatively affect your credit score. Paying off the balance quickly can help mitigate these effects.
Final Thoughts
Using a credit card for car purchases can be an excellent strategy to rack up points, miles, or cash back, and it’s a convenient method to meet spending requirements for new cards.
Just remember that many dealerships will restrict credit card use to down payments, so checking beforehand is key.
Related: Best Credit Cards
For information on rates and fees related to the Amex Platinum, click here.
For information on rates and fees for the Business Platinum, click here.
For rates and fees associated with the Blue Business Plus, click here.
For rates and fees on the Amex Blue Business Cash, click here.
