Yes, you can often make car payments with a credit card, but it's not always straightforward and typically comes with significant fees that can outweigh the benefits. Most lenders will not accept credit card payments directly unless you use a third-party payment service like Plastiq, which charges a processing fee (usually 2.9%) to send a check or electronic payment to your lender on your behalf.
The primary reason to consider this method is to earn credit card rewards or meet a spending threshold for a sign-up bonus. However, you must do the math to ensure the value of the rewards exceeds the processing fee. For example, if your car payment is $500, a 2.9% fee adds $14.50. If your card only offers 1.5% cash back ($7.50), you're losing money. This strategy is generally only worthwhile with high-reward cards or for hitting a specific bonus target.
| Lender / Method | Typical Credit Card Acceptance | Common Fees/Conditions | Best For |
|---|
| Direct to Lender (e.g., Chase Auto) | Rarely | May not be an option | N/A |
| Third-Party Service (e.g., Plastiq) | Yes | ~2.9% processing fee | Earning rewards, meeting bonuses |
| Credit Card Convenience Check | Yes | Often treated as a cash advance (high fees, no grace period) | Emergency use only |
| Some Credit Unions | Occasionally | May allow with a convenience fee | Members of specific institutions |
| Online Portal (rare cases) | Sometimes | Flat fee (e.g., $5-$10) or percentage-based fee | If flat fee is lower than reward value |
Before proceeding, contact your auto loan servicer to confirm their payment policy. Never assume a credit card is accepted. If using a service like Plastiq, also verify that your lender will accept a payment from them. Crucially, avoid using convenience checks from your credit card issuer, as these are frequently coded as cash advances, incurring immediate interest and higher fees. The smartest approach is to view this as a tactical financial move for specific rewards goals, not a routine way to manage your auto loan.
