Unless you have a sizable bank account, buying a car usually requires borrowing at least some of the funds you need. Auto loans are by far the most common way to pay for a new set of wheels. But what about simply using a credit card to make your next car purchase?
As unusual as that strategy sounds, it’s one that can actually work to your advantage in some cases. For example, if you’re simply using the card to amass a bunch of rewards and plan to pay down your balance right away, it might be worth a try. But it’s important to understand the potential pitfalls, too.
Should you decide to use a card for your vehicle purchase, be sure to use one with generous rewards that fit your needs. Below are some of the cards that offer enticing benefits for users.
Recommended credit cards to buy a car
Card Welcome offer APR Annual fee Credit score
American Express® Gold Card
Earn 60,000 Membership Rewards® Points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
See Pay Over Time APR (Rates & Fees)
$250 (Rates & Fees)
Good, Excellent
Chase Sapphire Reserve®
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®
22.49%-29.49% Variable
$550
Excellent
Capital One Venture Rewards Credit Card
Enjoy a one-time bonus of 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening
19.99% - 29.99% (Variable)
$95
Excellent, Good
Chase Freedom Unlimited®
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
20.49% - 29.24% Variable
$0
Excellent, Good
My GM Rewards Card
Earn 15,000 bonus points if you spend $1,000 in your first three months.
19.99% - 29.99% Variable
$0
Good to Excellent
DrivePlus Mastercard
Earn $1,000 bonus certificate toward the purchase of certain Fiat Chrysler models when you spend $7,500 in your first year.
17.24% - 28.24% Variable
$0
Good to Excellent
BMW Card
Earn 5,000 bonus points when they make $500 in purchases within the first 90 days of opening an account.
15.24% - 26.24% Variable
$0
Good to Excellent
Rewards credit cards to buy a car
earn 60,000 membership rewards® points after you spend $6,000 on eligible purchases with your new card within the first 6 months of card membership.
If you have good to excellent credit, the American Express® Gold Card has a lot to offer. You have the ability to earn 60,000 Membership Rewards points when you
spend $4,000 on purchases during the first six months. You can use those points to make purchases, cover previous charges, or receive gift cards to your favorite retailers. The annual fee of $250 (Rates & Fees) may seem a little high, but the ability to accrue so many points can more than make up for it.
Chase Sapphire Reserve®
This is another card that rewards shoppers for making a large purchase early on. With the Chase Sapphire Reserve®, you earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. that's $900 toward travel when you redeem through chase ultimate rewards®. That means you get a credit for up to $900 for travel expenses when you redeem through Chase Ultimate Rewards. There’s an annual fee of $550, but the amount of rewards you’re getting can make that a smart investment.
Capital One Venture Rewards Credit Card