Most lenders don’t accept credit cards for auto loan payments, but even if your lender does, you need to think twice before using that option. If you aren’t careful, you could end up paying more than your original auto loan amount. Up ahead, we’ll cover everything you need to know so you can decide what the best option is for you.
[Read: Best Credit Cards] How to Make a Car Payment With a Credit Card There are several ways to pay with a credit card, even if your lender doesn’t accept cards directly. Rewards Credit Cards According to Experian, in the first quarter of 2026, Americans were paying an average of $770 a month for a new car. For used cars, the average loan payment was $531 per month.
Rates for car loans have decreased slightly since last year, but your auto loan may still have high monthly payments. I know that makes it tempting to use a rewards credit card to earn all those perks. But before you start packing for Bora Bora, you should know that most lenders won’t allow a direct credit card payment on an auto loan.
And even if they did, there would likely be a convenience fee. This fee is a surcharge that a lender makes you pay for the convenience of using a credit card. You really don’t want to pay more for your car than you already are, right?
But if your car dealer accepts credit cards, there’s another option to try. Credit Card With a 0% Introductory Purchase APR You could bypass the loan process altogether and buy a car with a 0% intro APR credit card. This approach allows you to make interest-free payments using your credit card.
These cards have introductory periods that range from about 12 to 21 months. But you’ll need a high enough credit limit to cover the cost of a car, plus you have to find a dealer who will accept a credit card as payment for the entire price. If you think you can pay off the loan in that time frame and you have very good credit, it’s something to consider.
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