{"id":3989,"date":"2019-07-29T10:00:09","date_gmt":"2019-07-29T17:00:09","guid":{"rendered":"https:\/\/lendingarch.ca\/?p=3989"},"modified":"2021-07-20T16:09:59","modified_gmt":"2021-07-20T22:09:59","slug":"should-you-pay-a-car-loan-down-payment-with-a-credit-card","status":"publish","type":"post","link":"https:\/\/bestlendersfor.ca\/should-you-pay-a-car-loan-down-payment-with-a-credit-card\/","title":{"rendered":"Should You Pay A Car Loan Down Payment With A Credit Card?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3989\" class=\"elementor elementor-3989\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7ee81d99 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7ee81d99\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1ddc989c\" data-id=\"1ddc989c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b1b2f9d elementor-widget elementor-widget-text-editor\" data-id=\"b1b2f9d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>What do you do if you need a new vehicle now, but you\u2019re totally strapped for cash? Your first instinct could be to slap your credit card down to make the down payment on the car loan. This seems like a great idea\u2014but, is it? Well, there are certainly pros and cons to putting your car loan down payment on a credit card.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-925242a elementor-widget elementor-widget-heading\" data-id=\"925242a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">The Pros<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-83cd154 elementor-widget elementor-widget-text-editor\" data-id=\"83cd154\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>You Could Get Rewards<\/strong>. \u00a0These days, a lot of credit cards come with <a href=\"https:\/\/lendingarch.ca\/best-cash-back-credit-cards\/\">cash back<\/a> or other perks. You typically get a certain percentage of rewards per every dollar you spend. So, if your <a href=\"https:\/\/lendingarch.ca\/car-loans-application-online\/\">car loan<\/a> down payment is a significant amount of money, you could actually end up getting a fairly big chunk in rewards credited back to your account.<\/p><p><strong>You Can Use It Immediately<\/strong>. Using your credit card for a down payment means you can walk in today and make that payment. There\u2019s no waiting to hear back about other loans or having to go get a money order or other form of payment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-00bad62 elementor-widget elementor-widget-image\" data-id=\"00bad62\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"900\" height=\"268\" src=\"https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/pros-cons-of-credit-card-down-payment-for-car-1-1024x305.jpg\" class=\"attachment-large size-large wp-image-6643\" alt=\"The Pros and Cons of using your credit card for an auto loan down payment\" srcset=\"https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/pros-cons-of-credit-card-down-payment-for-car-1-1024x305.jpg 1024w, https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/pros-cons-of-credit-card-down-payment-for-car-1-300x89.jpg 300w, https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/pros-cons-of-credit-card-down-payment-for-car-1-768x228.jpg 768w, https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/pros-cons-of-credit-card-down-payment-for-car-1-1536x457.jpg 1536w, https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/pros-cons-of-credit-card-down-payment-for-car-1-2048x609.jpg 2048w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ff0f23 elementor-widget elementor-widget-heading\" data-id=\"5ff0f23\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">The Cons<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d15af36 elementor-widget elementor-widget-text-editor\" data-id=\"d15af36\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>You Could End Up Paying A Lot Of Interest<\/strong>. Chances are, you don\u2019t have a low-interest rate on your credit card. So, unless you can pay off your balance by the time it is due at the end of your billing cycle, you\u2019re likely going to accrue quite a bit of interest. And, if you take several months\u2014or possibly even years\u2014to pay it off, that will really add up and you could end up paying almost the equivalent of the price of your car in interest!<\/p><p><strong>The Dealership May Not Allow You To Pay With A Credit Card<\/strong>. Some automotive dealerships, especially some smaller independent ones, won\u2019t actually accept credit cards as a down payment. They are only equipped to collect cash, cheques, or money orders.<\/p><p>And, occasionally, you will find a dealership who does accept credit card payments, but they charge a merchant fee for the privilege of doing so. This fee varies significantly but should factor into your decision on if it\u2019s truly worth it to use your credit card for your auto down payment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ca91c68 elementor-widget elementor-widget-heading\" data-id=\"ca91c68\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">So, Is Putting A Car Loan Down Payment On A Credit Card Ever A Good Idea?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a094ab7 elementor-widget elementor-widget-text-editor\" data-id=\"a094ab7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>There are a few occasions when it could actually be a good idea to put your <a href=\"https:\/\/lendingarch.ca\/car-loans-application-online\/\">car loan<\/a> down payment on a credit card. Provided the auto dealership allows you to, that is.<\/p><p><strong>You Will Have The Money To Pay It Off Very Soon<\/strong>. This is the big one! If you are guaranteed to receive enough money to pay off the entire amount by the end of the billing cycle, then you won\u2019t accumulate any interest on your payment. But, if it will be a month or two before you\u2019ll be receiving enough money to pay off your payment, it may still be worth it to put that down payment on your <a href=\"https:\/\/lendingarch.ca\/get-credit-cards\/\">credit card<\/a> (if you have a low-interest rate). The interest accrued during that time may be low enough to justify it. Do some calculations before you commit though.<\/p><p><strong>Your Rewards Will Make It Worth It<\/strong>. Maybe you have a credit card which offers great rewards, or you make your payment during the time of bonus rewards or something similar. You could possibly end up with quite a few rewards that you will use, or cash back that will go back onto your card or into your bank account. So, if you are going to receive $200 in valuable rewards, even if you accrue $100 in interest over a few months, this still makes putting the purchase on your credit card worth it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c5feab5 elementor-widget elementor-widget-image\" data-id=\"c5feab5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"320\" height=\"202\" src=\"https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/American-Express\u00ae-AIR-MILES\u00ae-Reserve-Credit-Card.png\" class=\"attachment-large size-large wp-image-6644\" alt=\"Credit card for a car loan down payment\" srcset=\"https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/American-Express\u00ae-AIR-MILES\u00ae-Reserve-Credit-Card.png 320w, https:\/\/bestlendersfor.ca\/wp-content\/uploads\/2019\/07\/American-Express\u00ae-AIR-MILES\u00ae-Reserve-Credit-Card-300x189.png 300w\" sizes=\"(max-width: 320px) 100vw, 320px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2e65d12 elementor-widget elementor-widget-text-editor\" data-id=\"2e65d12\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>You do need to do a lot of calculations to figure out how much interest you will have to pay and how many rewards you will ultimately receive to know if this is truly worth it. Really, you should consider these rewards and cashback to be a bonus, but you want to break even at a minimum to make it even slightly worth it.<\/p><p>There is one more caveat with this one. Make sure you will be receiving rewards you will actually use. Cashback, or points to use towards groceries or things you buy often are definitely rewards you will reap. However, if they are for air travel or something else you find you\u2019re not able to use, then it\u2019s best not to factor those rewards into your ultimate decision.<\/p><p><strong>You Get A Great Promotional Interest Rate<\/strong>. Maybe you have just opened your account and have six months at zero interest, or maybe you have just negotiated a very low rate on your card. This may be a good time to put your car loan down payment onto your credit card.<\/p><p>The key here is to still have a plan in place to pay off your balance in full as soon as possible. Because, at the end of the promotional period, your interest rate will likely skyrocket. And, keep in mind that even if you have a lower interest rate, it\u2019s still accumulating money onto what you owe. This can be a very dangerous cycle.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c1be39e elementor-widget elementor-widget-heading\" data-id=\"c1be39e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Bottom Line<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-da6f246 elementor-widget elementor-widget-text-editor\" data-id=\"da6f246\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>So, as you can see, putting a car loan down payment onto a credit card is truly only a good idea if you will have cash in hand to pay it off quickly.<\/p><p>If you\u2019re strapped for money for a down payment, it\u2019s likely a much better idea to get a no or low-interest car loan in order to purchase that vehicle you desperately need. When you work with <a href=\"https:\/\/lendingarch.ca\/\">LendingArch<\/a>, you can be assured you will receive the best rate possible. We work with lenders across the country to ensure you get the best car loan rates in Canada.<\/p><p>And, the good news is that you can get a loan even if you have bad credit! So, no matter what kind of loan you want\u2014<a href=\"https:\/\/lendingarch.ca\/car-loans-application-online\/\">bad credit car loans<\/a>, <a href=\"https:\/\/lendingarch.ca\/car-loans-application-online\/\">refinance car loans,<\/a> or any type of <a href=\"https:\/\/lendingarch.ca\/car-loans-application-online\/\">auto loans in Canada<\/a>, you can trust <a href=\"https:\/\/lendingarch.ca\/\">LendingArch<\/a> to find you the best rate. Applying online is quick and easy.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What do you do if you need a new vehicle now, but you\u2019re totally strapped for cash? Your first instinct &#8230; <a title=\"Should You Pay A Car Loan Down Payment With A Credit Card?\" class=\"read-more\" href=\"https:\/\/bestlendersfor.ca\/should-you-pay-a-car-loan-down-payment-with-a-credit-card\/\" aria-label=\"More on Should You Pay A Car Loan Down Payment With A Credit Card?\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":5987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,30],"tags":[],"class_list":["post-3989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-car-loans","category-credit-cards"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Should You Pay A Car Loan Down Payment With A Credit Card?<\/title>\n<meta name=\"description\" content=\"There are a few occasions when it could actually be a good idea to put your car loan down payment on a credit card.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bestlendersfor.ca\/should-you-pay-a-car-loan-down-payment-with-a-credit-card\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Should You Pay A Car Loan Down Payment With A Credit Card?\" \/>\n<meta property=\"og:description\" content=\"There are a few occasions when it could actually be a good idea to put your car loan down payment on a credit card.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bestlendersfor.ca\/should-you-pay-a-car-loan-down-payment-with-a-credit-card\/\" \/>\n<meta property=\"og:site_name\" content=\"BestLendersFor - 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