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How do I pay my car loan with a credit card?
I want to get some points on my credit cards by using them to pay my car loan then immediately paying them off. How do I do this?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“That’s a good question, and while you technically can use your credit card, it may not be that easy.
In fact, most lenders do not allow you to pay for your
car loan
with a credit card directly. Even if you get points on your credit card, lenders that allow you to pay your loan with a credit card often have transaction fees of 3% or more—which negates the benefit of paying with a credit card.However, you might find a little loophole if you look hard enough. If your lender is willing to let you pay off the entire balance of your car loan with a credit card, you might benefit from cards that offer a 0% introductory APR. With that said, you still have to see how much a balance transfer is or how much the lender might charge you for such a transaction. Furthermore, you have to factor in
prepayment penalties
that some lenders may charge.If you want to pay off your car loan faster, you can also try to make principal-only payments, lump-sum payments, or double up on payments each month.
If you want to free up some money for your car loan, look at your car insurance rates. With the
Jerry
app, you can compare rates from up to 50 insurance companies to get the best rates for your car insurance needs.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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