WalletHub, Financial Company
@WalletHub
It’s possible to make a car down payment with a credit card. But whether or not you can depends on your dealer’s policy. Some dealers don’t accept plastic, because the transaction fees eat away at their profit margins. Others accept credit cards but charge a fee for the transaction. Plus, if your dealer is willing to take a credit card for a down payment, it will only work if you have a high enough credit limit, unless you are spreading the payment over several cards.
Even if you can use your credit card for a down payment on a car, it doesn’t necessarily mean that you should. A purchase that large could mean steep interest charges. Plus, depending on how high your credit limit is, putting a down payment on your card could hurt your credit score by increasing your credit utilization ratio.
Here’s when you should make a car down payment with a credit card:
- The dealer accepts credit cards and doesn’t charge a lot extra for using a credit card.
- You have a plan for paying it off that allows you to save money compared to other payment options. For instance, this could include using a 0% credit card and bringing your balance to zero by the time regular rates kick in.
- You’re putting the payment on a card with a large spending bonus or other valuable rewards. This assumes you’ve got the financing side of things figured out. Some 0% cards offer rewards, for example, or you could just pay your balance quickly.
In those circumstances, making a car down payment with a credit card could be a good idea. But it’s fairly rare for all of those factors to come together.

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Compare CardsRobert Haan, Member
@rob_haan
Yeah, you can. It counts as a purchase too, so you might even get rewards with the payment, if the credit card of choice has any. Obviously, the thing to note is that you should be careful of your credit limit, available balance and all that jazz. If the down payment takes a big chunk of your available credit, your score will feel that pain.
Bonnie T, Member
@bonniet_26
You should be able to, but that can only be a smart move if you do not incur high interest charges. So plan ahead and see the entire picture...
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