Is it more affordable to buy a car with a credit card or loan?

A credit card typically has a higher interest rate than a car loan. So, you only want to buy a car with a credit card if you have a plan to pay it off quickly. For example, it may make sense to use your credit card to pay for a car if you have a 0% APR card and can pay everything off before the intro period ends. If you'll struggle to afford a monthly payment, then you may want to avoid accumulating credit card debt.

Does it hurt your credit score to buy a car?

As with any large purchase, when you first buy a car, you may see a temporary dip in your credit scores because you're taking out a hefty loan. But, with responsible habits, such as making on-time payments, your credit score should improve.

A young couple sits at a table in a car showroom, hands their credit card to a dealer while receiving a new car key.

Can You Buy a Car with a Credit Card

6 min read

Last Updated: September 25, 2025

Key Takeaways

Most car dealerships won’t allow you to pay for the entire price of a car on a credit card, but may allow you to pay for a down payment.
The benefits and risks of buying a car with your credit card depend on your credit utilization ratio, credit card interest charges, and the rewards potential.
If you pay for a car with your credit card, try to pay off the balance quickly to avoid hurting your credit score.