Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Disclosure: When you apply through links on our site, we may earn a referral fee from our partners. For more, see our ad disclosure and review policy.
Has it ever occurred to you that you could use a credit card to buy a car? Astute readers of CardRates.com will recall that we’ve addressed this exciting possibility, explaining when cards can and cannot help pay for a car purchase. If you are contemplating acquiring one of the best credit cards for buying a car, it makes sense to understand the different rewards and promotions first.
Getting a new card with an introductory period of 0% APR purchases means that you can avoid the card’s interest cost for an extended period. Then there’s the possibility of earning cash back, points, or miles, depending on which card you use.
So, put down those car brochures for a minute and consider choosing a credit card to help pay for your next set of wheels.
Overall | 0% APR | Cash Back | Miles | FAQs
Best Overall Card for Buying a Car
We’ve chosen the Discover it® Cash Back as the best overall card for buying a car. This card’s average credit limit is $3,000, but the limit can go as high as $20,000 — that can pay for a brand new car!
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem cash back for any amount. No annual fee.
- Get a 0% intro APR for 15 months on purchases and balance transfers. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
Cardholders are eligible to receive cash back rewards on top of a promotional introductory APR. It’s also good to know that the Discover it® Cash Back card is a little forgiving — paying late won’t raise your APR, you won’t be charged an over-limit fee, and there is no late fee on your first late payment.
Any dealership that accepts credit cards is likely to accept this one, as do 11 million merchants nationwide representing 97% of places accepting credit cards.
Best 0% APR Cards for Buying a Car
For many, a credit card with an introductory 0% APR on purchases for new cardmembers is the greatest thing since sliced bread. This is a promotion that operates for a set period from the date you open the account.
During the introductory period, you pay no interest on your card balance. Many cards offer introductory periods of 12 months or more. If you use your card to buy a car, introductory periods give you extra time to pay down your balance and escape all interest charges on your purchase.
The following 0%-APR cards scored the highest in our evaluation:
- New! 0% Intro APR for 21 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 14.99% - 25.99% will apply. A 5% fee applies to all balance transfers. Balance transfers may not be used to pay any account provided by Bank of America.
- No annual fee.
- No penalty APR. Paying late won't automatically raise your interest rate (APR). Other account pricing and terms apply.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category.
- Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- Select your card design option when you apply – the Customized Cash Rewards design, or the limited-time FIFA World Cup 2026™ design.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.49% - 27.49% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
Additional Disclosure: Bank of America is a CardRates advertiser.
- Earn 20,000 bonus Points after spending $1,000 in the first 3 months of account opening.
- 0% Intro APR on balance transfers and purchases for 15 months; after that, the variable APR will be 18.49% - 28.49%, based on your creditworthiness. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- Earn 3 ThankYou® Points for each $1 spent in an eligible Self-Select Category of your choice (Fitness Clubs, Select Streaming Services, Live Entertainment, Cosmetic Stores/Barber Shops/Hair Salons, or Pet Supply Stores). Choose your eligible Self-Select Category on Citi Online or by calling customer service. The default Self-Select Category is Select Streaming Services.
- Earn 5 ThankYou® Points for each $1 spent on Hotels, Car Rentals and Attractions booked on Citi Travel® via cititravel.com; earn 3 ThankYou Points for each $1 spent at Supermarkets, on Select Transit purchases, and at Gas & EV Charging Stations.
- Earn 2 ThankYou® Points for each $1 spent at Restaurants; earn 1 ThankYou® Point for each $1 spent on All Other Purchases.
- No Annual Fee
Additional Disclosure: Citi is a CardRates advertiser.
Before you select a 0% APR card, make sure you understand the regular APR that will kick in when the introductory period ends. Any balance remaining after the period ends will begin accruing interest charges. Clearly, an APR of 18% will cost you less than will a 29.99% APR.
That’s important if your original car purchase transaction on the card was large, so read the fine print before selecting a card. While you’re at it, check out all the benefits the card offers, as this can be a tiebreaker if you’re choosing between similar cards.
Best Cash Back Cards for Buying a Car
Let’s be honest — few things bring a smile to a face faster than a pile of money. A cash back card can facilitate smiles by giving you a cold hard cash refund on your credit card purchases. But not all cash back cards are equal.
Some offer a flat cash back rate on all purchases. Then there are the cards that offer different reward tiers on different merchant categories. Finally, there are cards that offer bonus cash back on purchases from quarterly rotating categories of merchants. Here are our top-recommended cash back cards for buying a car:
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category.
- Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- Select your card design option when you apply – the Customized Cash Rewards design, or the limited-time FIFA World Cup 2026™ design.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.49% - 27.49% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
Additional Disclosure: Bank of America is a CardRates advertiser.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Additional Disclosure: Citi is a CardRates advertiser.
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem cash back for any amount. No annual fee.
- Get a 0% intro APR for 15 months on purchases and balance transfers. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
Since no cards offer bonus cash back for car purchases, you may want to consider a card with a high flat rate on all purchases. Another thing to look for is a card that offers a generous introductory cash back bonus for a set amount spent on purchases during the first three months after opening the account.
Because purchasing a car on your credit card can involve a large purchase, you may want a cash back card with the most generous introductory bonus. We’ve considered all these factors to come up with our recommended cash back cards.
Best Miles Cards for Buying a Car
Travelers often prefer miles cards because some may be more rewarding than the cash back variety. With these cards, you earn a specified number of miles for each dollar you spend on purchases.
When you look at how valuable those mile rewards are, they may be worth more to you than cash. We recommend the following miles cards for your car purchase:
- Earn a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Top rated mobile app
- Earn a one-time welcome bonus of 100,000 miles once you spend $10,000 on purchases within the first 3 months from account opening
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won't expire for the life of the account
- Receive up to $220 in credits: Receive an annual $50 travel credit for bookings through Capital One Business Travel, up to an annual $50 statement credit for purchases at qualifying advertising or software merchants, plus up to a $120 credit for Global Entry or TSA PreCheck® every four years. Terms and conditions apply
- Unlimited 5X miles on hotels, vacation rentals and rental cars booked through Capital One Business Travel
- Transfer your miles to 15+ travel loyalty programs
- Redeem your miles instantly for any travel-related purchases, from flights and hotels to ride-sharing services
- $95 annual fee
- Free employee cards which also earn unlimited 2X miles from their purchases
- Top rated mobile app
You will earn the base miles reward on car purchases, which may nudge you toward a miles card with the highest flat rate. Another consideration is any extra value you can get when you redeem your miles. Some card issuers add extra value when you redeem your miles for travel. Another perk that some travel miles cards offer is to provide 1:1 transfer of your miles to a travel partner’s mileage program.
Do Car Dealers Take Credit Cards?
It depends. You see, car dealers must pay a processing fee on all credit card sales. The processing fee may be as low as 1% or as high as 4%, which translates to a $400 fee on a $10,000 purchase.
The processing fee for using credit to purchase a car may be higher than the dealer wants to pay.
Since many dealerships earn only a 5% profit on their sales, a 4% credit card fee would be unwelcome. So, don’t assume every dealer will accept your credit card when purchasing a car. Alternatively, a dealer may limit the amount you can charge on your card.
Naturally, the amount you can charge on the car purchase also depends on your credit limit and balance. You’ll get the most utilization from your card if it has a zero balance and a high credit limit. Even so, you may not be able to purchase the car entirely on your card.
In that case, you can use the card to make a down payment, subject to your credit limit and any dealer restrictions. Ideally, the down payment will help you earn your introductory signup bonus on a new credit card.
This requires that you time the acquisition of your new card such that you can use it to purchase a car within the first three months of opening the account.
Using your credit card for your down payment means that you don’t have to spend any cash on your car purchase until the next billing period. It also means you can spread repayment of the down payment over multiple months.
If you are using a new card, those months may be part of a 0% APR introductory period, which means it costs you nothing to stretch out your payments. For your sake and the sake of the dealership, find out ahead of time whether it will accept a credit card and if any limits apply.
How Much Can You Put on a Credit Card When Buying a Car?
Assuming your car dealer accepts credit cards, the amount you can put on the card when buying a car will depend on your available credit limit (i.e., card limit minus balance) and any purchase limits applied by the dealer. In some cases, these limits will not present any problem, and you will be able to charge the amount you desire on the car purchase.
However, you may find a dealer that imposes no limits on credit card use only to discover that your credit limit is lower than you would like. You then have a couple of options:
- Ask for a higher limit: You can speak to a representative of the credit card issuer and request a higher spending limit. The success of your request will depend on a few factors, such as how well you’ve been making monthly payments. For example, you may improve your chance of getting a higher limit if you always make relatively large payments each month, or better yet, always pay the entire balance. It’s also helpful to have a clean record of on-time payments. If the issuer considers you creditworthy, it may be more willing to increase your limits.
- Consider a charge card: Charge cards are similar to their credit card cousins, in that both allow you to charge purchases. However, you are expected to repay a charge card’s full balance each month unless you sign up for an optional revolving charge program, such as American Express Pay Over Time. What makes a charge card attractive when buying a car is that the card’s credit limit is flexible. That means you may be able to spend more at the dealership with a charge card, and you may be able to work out a higher limit just for the car purchase.
If you take the charge card route, you must repay the full balance in the following month, unless the card offers extended payments. But here’s an interesting alternative. You may want to use a charge card for the purchase, and then transfer the balance to a credit card during an introductory 0% APR balance transfer promotion.
You will have to pay a one-time transfer fee, typically 3%, but will otherwise avoid interest until the introductory period ends.
When is the Best Time to Buy a Car?
As with the timing of many things in life, proper timing of a car purchase can really pay off, saving you hundreds or even thousands. Here are a few tips:
- Shop when dealer traffic is sparse. Often, that’s Monday through Wednesday. This works because when the salesperson isn’t rushed, you stand a better chance of snagging a deal. Normally, dealerships are busiest on the weekends, leaving less time for a salesperson to negotiate with you. On a quiet Monday, a salesperson who wants to make the most of the day may offer you a sweeter deal.
- Be aware of sales deadlines. Car salespeople are assigned sales goals for the month and the year. As the month or year ends, you may find that a behind-quota salesperson is motivated to close sales even if the profit margin is a little lower. The last three days of the month and last three months of the year can be desperate times for car salespeople, but happy times for you.
- Watch for holiday sales, which often feature deep discounts. Black Friday and New Year’s Eve are great times to buy a car. Sale prices are in full gear, and sales quota deadlines loom large in the salesperson’s psyche. Typically, dealerships promote sales for Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas, and New Year.
- Shop when new models come out. That’s a great time to pick up the remaining current year models. Dealership lots need to free up space for new models and may be willing to offer you a good deal to take a current model off their hands.
When shopping for a car with a credit card, your timing equation should include using a new card with a 0% APR promotion and an introductory bonus deal for new cardmembers. That means timing the acquisition of a new card so that it arrives just before you finalize your car purchase.
Pay Your Balance to Avoid Costly Interest
The introductory 0% APR promotion that many cards offer is a great way to avoid interest. Of course, you can avoid interest altogether — just pay your balance every month.
This is a great idea if you can afford it, and many financial advisors would tell you that if you can’t afford it, you may be spending too much. If you resolve to always pay your balance in full, you not only avoid costly interest, you also exhibit financial discipline that keeps you ahead of your bills.
While paying your entire balance is ideal in terms of minimizing interest expense, it’s not always feasible. There are times when the ability to spread out payments is important. That’s especially apropos if you are using your card to buy a car, which can involve a sizable chunk of change.
Imagine you get a shiny new credit card with a 15-month introductory period of 0% APR on purchases and a $20,000 credit limit. You use the card to pay for a $20,000 car. You would have to repay $1,333 a month to completely pay off the card in 15 months.
For many, that’s just impossible, and only the ability to stretch out payments once the 15-month period expires makes feasible the car purchase with a credit card.
A credit card can be a good way to pay for some or all of a car purchase. You can use it for the down payment and then stretch out the payments. If you have a high enough credit limit, you can even put the whole purchase on the card.
We’ve reviewed the best credit cards for buying a car, both cash back and miles types. It pays to do considerable research before settling on your next car — and card.
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CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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