The best credit card for large purchases is Chase Freedom Unlimited because it offers credit limits of $500 - $5,000+ and gives new cardholders 0% interest for 15 months, to go along with 1.5% cash back on purchases and a bonus of $150 for spending $500 within 3 months of opening an account. It has a minimum credit limit of $500 and it’s possible to get limits of $5,000 or more. Plus, you’ll be able to finance a big purchase easily with 15-month of 0% interest on purchases. On top of that, you get 1.5% cash back on every purchase and a $150 bonus if you spend $500 in the first 3 months.
But other cards offer higher minimum credit limits or longer 0% intro periods if you decide to focus on one or the other. For example, another contender for best credit card for large purchases is the Citi Simplicity Card, which has 0% interest for 18 months and a $500 minimum credit limit. The Capital One Venture Card has a whopping $5,000 initial credit limit. That alone is enough to make it one of the best credit cards for a large purchase. But it also gives you $500 in travel for spending $3,000 in the first 3 months.
The best credit card for a large purchase depends a lot on how long it will take you to pay off your large purchase. The longer it will take, the more you should focus on low interest rates, as opposed to rewards. And you need a card with a credit limit at least as big as your purchase amount. Ideally, it will be a lot bigger, as maxing out your card is bad for your credit.
Either way, there are lots of cards to choose from that can help you save.
Here are the best credit cards for a large purchase:
Best cash bonus credit card for large purchases: Chase Freedom Unlimited. $5,000+ spending limit (Visa Signature version) or $500+ (Visa Platinum). 0% intro APR for 15 months. Regular APR of 16.24% - 24.99% (V). $0 annual fee. 1.5% cash back on every purchase. $150 bonus if you spend $500 in the first 3 months. Excellent credit needed.
Best 0% APR credit card for large purchases: Citi Simplicity. $500+ credit limit. 0% APR for 18 months. Regular APR of 15.49% - 25.49% (V). $0 annual fee. Good credit or better needed.
Best travel credit card for large purchases: Capital One Venture Rewards Credit Card. $5,000+ credit limit. Regular APR of 14.49% - 24.49% (V). $0 annual fee the first year, $95 after. 50,000 bonus miles ($500 in travel) if you spend $3,000 in the first 3 months. 2 miles per $1 spent on all purchases. Good credit or better needed.
Best cash back credit card for large purchases: Citi Double Cash. Minimum initial credit limit of $500+ credit limit. Regular APR of 14.99% - 24.99% (V). $0 annual fee. 1% cash back on every purchase, and 1% back when you pay for those purchases. Good credit or better needed.
Best bonus cash back credit card for large purchases: Discover it Cash Back. $500+ credit limit. 0% APR for 14 months. Regular APR of 13.49% - 24.49% (V). $0 annual fee. 5% cash back on up to $1,500 spent per quarter in bonus categories – such as gas stations, grocery stores or restaurants – that change quarterly. 1% cash back on all other purchases. First year’s cash back matched. Good credit or better needed.
Any time you make a big purchase with a credit card, you risk hurting your credit score. Lenders view high credit utilization as risky. But there are ways to avoid that. You could overpay your bill in advance of your purchase. That would leave you with a negative balance and more spending power with your card. And after the purchase, you could also pay part or all of your bill before your monthly statement gets generated. That reduces the balance used to calculate credit utilization.
Those strategies are especially important for people with less-than-good credit, who aren’t likely to qualify for credit cards with high limits or low-interest rates.