Credit cards can be a blessing. They give you the ability to make large purchases without having to prepare a fund in advance, as well as get through emergencies. If a dealership allows it, you may be able to charge a down payment to a credit card. But it varies from dealer to dealer, and there may be limits on how much you can charge.
But, before you do that, ask yourself the question: will you be able to afford the monthly credit card payments in addition to the monthly car payment and other expenses that will come with ownership? Credit cards typically charge higher interest fees than an auto loan, and that can end up being a curse.
Unless you know for sure that you can pay off the entire amount you placed on the credit card in a matter of weeks, it would not be advisable to add this much to your overall debt while lowering your credit score by using too much of your available credit.
Better Ways to Raise a Down Payment
Instead of running up a balance on a credit card, there are other methods you should explore first.
- Trade in your previous vehicle. If you have a car that you currently own, it is worth having the dealer take a look at it, even if it isn't in the best shape. You never know, it may just be enough to cover a minimum down payment requirement.
- Do you need that car right now? Don't let that available credit go to your head. Is it possible to wait a few weeks longer and take that extra time to save up the funds for a down payment? Using that credit card has a bigger potential to cost you more in the long run than having a little patience.
- Is there a friend or family member that can help you? If you know someone who has the ability to lend you a small amount to cover a minimum payment in order to get auto loan approval, you might be able to work out an arrangement with them to pay back the loan with minimal interest.
There Is Another Choice
If none of the above options are a possibility for you, Auto Credit Express can find you a car dealer. We know that not everyone is able to financially prepare for a sudden replacement of a vehicle, and we have a network of dealers who specialize in situations like yours.
All you need to do is fill out our simple and fast online application, and then we will contact you and arrange a meeting time with you and the dealer who can help. Don't let a low down payment or a lack of one stop you from achieving your goals. Come to us today.