Best Credit Cards for Purchasing a Car

Comparing the top credit cards for buying a car

A closer look at the best credit cards for car purchase

Platinum Card from American Express

Rewards Rate:

1. 5x points on flights and eligible prepaid hotels
2. 1x points on all other purchases

Annual fee: $695

Intro APR: N/A

Regular APR: 21.24 – 29.24%

Signup bonus: 80,000 Membership Rewards Points after spending $8,000 in eligible purchases within the first six months.

Our verdict: Even though this card has a premium price tag, you likely won’t find another card with comparable travel benefits and other perks like airport lounge access, hotel elite status, annual statement credits, and more. This card is built for large purchases, such as a new vehicle, because it also doesn’t have a preset spending limit, meaning you may be able to charge a larger purchase. If you’re a frequent flyer, using this card to buy a car and for your travel purchases can help you accumulate rewards points quickly, which can be redeemed for Pay with Points at checkout, gift cards, statement credits, travel upgrades, and more.

Pros:

• Unlock more than $1,500 per year in statement credits earned on select purchases made with the Platinum Card from American Express.
• Everyday benefits include $240 digital entertainment credit, $155 Walmart+ credit, $300 Equinox credit, cell phone protection, $100 Shop Saks statement credit, and more.
• Travel benefits include $200 hotel credit, $200 airline fee credit, $200 in Uber Cash, $189 CLEAR Plus credit, premium rental car status, access to The American Express Global Lounge Collection, and more.
• Plan It allows you to select large purchases and split them into monthly payments (with a fixed fee) while Pay Over Time allows you to carry a balance with interest on eligible purchases.

Cons:

• $695 annual fee.
• Only earn 1x points on non-bonus purchases.

Apply now: The Platinum Card® from American Express

Capital One Venture X Rewards

Rewards Rate:

1. 10x miles on hotels and rental cars booked through Capital One Travel
2. 5x miles on flights booked through Capital One Travel
3. 2x miles on all other purchases

Annual fee: $395

Intro APR:

Regular APR: 21.99% – 28.99% variable

Signup bonus: 75,000 bonus miles when you spend $4,000 on purchases within the first three months.

Our verdict: While this card also has a hefty annual fee, it’s one of the top travel credit cards available. The ability to earn 2x miles on every purchase (plus higher rewards rates on certain travel purchases) and flexible points redemption options make this card one of the most ideal for purchasing a vehicle. Plus, it comes with several other card benefits, and many cardholders get high credit limits.

Pros:

• 10,000 bonus miles each year, starting on your first anniversary.
• $300 annual travel credit when you book through Capital One Travel.
• $100 Global Entry or TSA PreCheck credit.
• Miles don’t expire, no blackout dates.
• No foreign transaction fees.
• Unlimited access to Capital One Lounges, Priority Pass lounges, travel insurance, purchase protection, extended warranty protection, $0 fraud liability protection, and other perks.

Cons:

• $395 annual fee.
• Doesn’t offer bonus categories for flights/hotel purchases made directly with the airline or hotel group.

Apply now: Capital One Venture X Rewards Credit Card

Chase Freedom Unlimited

Rewards Rate:

1. 5% back on travel purchased through Chase
2. 5% cash back on Lyft rides (through March 31, 2025)
3. 3% on dining and drugstore purchases.
4. Unlimited 1.5% cash back on all other purchases.

Annual fee: $0

Intro APR: 0% intro APR for 15 months on purchases and balance transfers

Regular APR: 20.49% – 29.24% variable

Signup bonus: Earn $200 bonus cash after you spend $500 on purchases in the first three months, plus earn 5% cash back on grocery store purchases (on up to $12,000 spent) in the first year.

Our verdict: With no annual fee, unlimited 1.5% cash back on eligible purchases, and a 0% intro APR rate for 15 months, the Chase Freedom Unlimited card can be a good one to use for purchasing a vehicle. You won’t owe interest for 15 months, but can still earn the welcome bonus and cash back rewards. Plus, you’ll get access to other features like purchase protection, extended warranty coverage, secondary rental car insurance, and more. Then, you can redeem your rewards for cash back, purchases at Amazon, gift cards, or travel.

Pros:

• No annual fee.
• Cash back rewards do not expire, there’s no redemption minimum, and redemption options are flexible.
• Complimentary three months of DashPass and Instacart+.
• 0% intro APR for 15 months.
• Earn bigger on travel purchased through Chase Ultimate Rewards.

Cons:

• 3% foreign transaction fee.

Apply now: Chase Freedom Unlimited

Learn more: Chase Freedom Unlimited® Credit Card Review

Discover it Cash Back rewards card

Rewards Rate:

1. 5% back on purchases at different places each quarter, including Amazon.com, grocery stores, restaurants, gas stations, etc. (up to the quarterly maximum).
2. 1% cash back on all other purchases.

Annual fee: $0

Intro APR: 0% APR for 15 months on purchases and balance transfers and 3% intro balance transfer fee until November 10, 2023

Regular APR: 17.24% – 28.24% on purchases, up to 5% fee for balance transfers

Signup bonus: N/A

Our verdict: The Discover it card makes a good card for a vehicle purchase for two primary reason: First, you’ll get a 0% intro APR for 15 months, giving you time to pay down your balance before accruing interest, and second, you’ll get an unlimited dollar-for-dollar cash back match at the end of your first year. You’ll earn 1% on your car purchase, and then be able to get an automatic match to double your rewards. This card also has a $0 annual fee, but note the bonus categories do have quarterly maximums and you must enroll to get the higher rewards rate. Also note this card has a lower average credit limit, but the limit can go as high as $20,000, which is enough for a car.

Pros:

• Get an unlimited dollar-for-dollar cash back match at the end of the first year, automatically.
• 0% intro APR for 15 months.
• $0 annual fee.
• 5% cash back on rotating categories throughout the year.

Cons:

• Bonus categories have quarterly maximums.
• Must enroll in bonus categories to get the higher rate.
• Lower average credit limits.
• No sign-up bonus.

Apply now: Discover it cash back credit card

Learn more: Discover It Cash Back Credit Card Review

Slate Edge credit card

Rewards Rate: N/A

Annual fee: $0

Intro APR: 0% intro APR for 18 months on purchases and balance transfers, and $0 plan fees when you split large purchases into monthly installments with My Chase Plan.

Regular APR: 20.49% – 29.24% variable

Signup bonus: N/A

Our verdict: While the Slate Edge doesn’t offer rewards for spending, the 18-month 0% intro APR and $0 plan fees when you split large purchases into monthly installments using My Chase Plan make this card excellent for large purchases or balance transfers. Plus, you can lower your interest rate by 2% each year and get an automatic review for a higher credit limit when you pay on time and spend $500 in your first six months. The card also has no annual fee.

Pros:

• 0% intro APR for 18 months.
• Pay over time with My Chase Plan.
• $0 annual fee.
• Lower your interest rate by 2% each year.
• Automatic credit limit increase evaluations.
• 3-month complimentary pass to DashPass and Instacart+.

Cons:

• No rewards.
• Not as many additional cardholder benefits/perks as other cards.
• 3% foreign transaction fees.
• No sign-up bonus.

Apply now: Chase Slate Edge

Bank of America Customized Cash Rewards Credit Card

Rewards Rate:

1. 3% cash back in the category you choose (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings) (on up to $2,500 in combined spending)
2. 2% cash back at grocery stores and wholesale clubs (on up to $2,500 in combined spending)
3. Unlimited 1% cash back on all other purchases

Annual fee: $0

Intro APR: 0% intro APR for the first 15 billing cycles, and balance transfers made within the first 60 days

Regular APR: 18.24% – 28.24% variable

Signup bonus: Online $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days

Our verdict: While the Bank of America Customized Cash Rewards card doesn’t have the best rewards rates and bonus categories on the market, the card does have a $0 annual fee and 0% intro APR for the first 15 billing cycles, giving you more time to pay off your car purchase without accruing interest. You can also earn 3% back on gas if you choose that category, and an unlimited 1% back on other purchases (including your car). You can earn more if you’re a Preferred Rewards member.

Pros:

• Earn 25% – 75% more cash back on every purchase as a Preferred Rewards Member.
• 0% intro APR for 15 billing cycles.
• $0 annual fee.
• Choose your top rewards category.

Cons:

• Only earn 3% and 2% on the first $2,500 in combined choice category grocery/wholesale club purchases each quarter.
• Must go to Online Banking or use the mobile app to change your choice category; can only change once per month.
• Lower sign-up bonus compared to other cards.

Apply now: Bank of America® Customized Cash Rewards Credit Card

Learn more: Bank of America Customized Cash Rewards Card Review

Bank of America Travel Rewards Credit Card

Rewards Rate: Unlimited 1.5 points for every $1 you spend on all purchases, everywhere, every time, with no expiration.

Annual fee: $0

Intro APR: 0% intro APR for your first 15 billing cycles on purchases, and balance transfers made in the first 60 days

Regular APR: 18.24% – 28.24%

Signup bonus: 25,000 online bonus points if you spend at least $1,000 in the first 90 days (can be redeemed for statement credit toward travel and dining purchases).

Our verdict: If you’re a frequent flyer and looking to purchase a card, the Bank of America Travel Rewards card can be a good option. Not only can you earn unlimited 1.5 points per every $1 spent on all purchases, the card has a $0 annual fee and 0% intro APR for 15 billing cycles, giving you time to pay off your purchase without accruing interest. It also doesn’t have foreign transaction fees, though unfortunately, you won’t get any bonus categories that offer a higher rewards rate.

Pros:

• Earn 25% – 75% more cash back on every purchase as a Preferred Rewards Member.
• 0% intro APR for 15 billing cycles.
• $0 annual fee.
• Unlimited 1.5 points for every $1 you spend, no restrictions.
• No foreign transaction fees.

Cons:

• No bonus categories.

Apply now: Bank of America® Travel Rewards credit card

Is it a good idea to use a credit card to buy a car?

There are a few things to keep in mind when considering using a credit card to buy a car:

• The maximum amount you can put on a credit card depends on your card, though the average limit is around $5,000 or less. Some cards may have a high enough limit that you can put the entire car on it, but for most others, you’ll only be able to buy a less expensive car or use the card for some of the purchases.

• Dealership restrictions: Not all dealerships accept credit cards for vehicle purchases, so be sure to call ahead and speak to the finance manager to learn if that’s even an option. Additionally, even if the dealership does accept a credit card, they may charge additional fees (up to 4%), which can eat into your rewards.

• Vehicle cost: Even if you can put most or all of the vehicle purchase on a credit card, it may not always be a good option due to the fact that balances that carry over from month to month will accrue interest (except within a 0% intro APR period). This can add hundreds or even thousands of dollars to your total purchase price.

• Impact on credit: Carrying a balance from month to month and keeping a high balance overall on your card can negatively impact your credit score because your credit utilization rate will be high.

Overall, while it’s possible to find a dealer that will accept credit cards as payment, the risk of high credit utilization and accruing interest on a high balance may not be worth it. That said, choosing a card with a 0% intro APR period and rewards that will be earned with the purchase can help outweigh some of the downsides.

Also, note that credit card APR is typically much higher than rates for auto loans, so you should only use a credit card if you plan to completely pay down the balance before it accrues interest.

How to use a credit card to buy a car

If you’re going to use your credit card to buy a card, you need to have a plan:

• Check with your credit card. Make sure the purchase will go through, especially if you’ve recently applied for the card. Know your credit limit and any other restrictions you may have on the purchase or earning rewards for it. You should also let your issuer know ahead of time because it’s likely a large and unusual transaction, like a vehicle purchase, will be flagged for fraud.

• Find a dealer. Not all dealerships accept credit cards, so you’ll need to do some research to find one that does. Ask if there are any fees for using a card. Be prepared for the dealership to try to steer you toward their financing options, but also be open to other options that may be better.

• Weigh the risks. Using a credit card that earns rewards and has a 0% intro APR can be a benefit, but there are also risks such as high ongoing APRs, credit limits, increased credit utilization, and the risk to your credit score, and more. Make sure the benefits outweigh the risks.

• Create a payback plan. Especially if you’re taking advantage of a 0% intro APR offer, make sure you create a plan to pay off your balance in time to avoid accruing interest.

Methodology

A variety of factors were considered when evaluating which card was the best credit card for purchasing a car, but the most important of those include:

• The annual fee associated with the credit card if there was one

• The overall cost of owning the card, including the intro APR period, regular APR period, and any applicable fees associated with owning the card

• The rewards categories the credit card offered and how applicable they were to young adults

• The ease of being approved for the credit card with a limited credit history

• The reputation of the credit card issuer

FAQs