Can you pay your car insurance with a credit card

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Can you buy a car with a credit card?

Yes, you can buy a car with a credit card, but it’s not common. Most of the time, dealers won’t let you because it costs them extra fees and adds more risk due to potential chargebacks. And since cars tend to be pretty expensive, you’ll need a lot of available credit (and a stellar credit history), for it to even work with a dealer that takes cards. But if you can pay with a card that has low interest rates and good rewards, it could make sense.… read full answer

On that note, some car companies – including GM, Cadillac, Buick and Chevy – have co-branded credit cards like the My GM Rewards Card™, the Cadillac Credit Card, the Buick Credit Card and the Chevrolet Credit Card. These cards allow you to earn and redeem rewards for vehicle payments.

Here’s what you should know about buying a car with a credit card:

• Most dealers won’t allow it. That’s because they have to pay a percentage of the sale price to the credit card networks for every transaction, which can be a lot of money when the purchase is a car.
• You’ll need a high credit limit. You’ll need to have a total credit limit that’s higher than the car’s price, which could be tens of thousands of dollars. You can split the car price among multiple cards. But it will still likely lead to high credit utilization and possible credit score damage.
• Quick repayment is key. The average credit card APR is over 14%. You don’t want to be carrying a big balance at that rate. And considering the average APR for a 36-month car loan is less than 3%, you’re probably better off not using a credit card. If you charge a car to your card, you’ll want to pay it off right away or use a card with a long 0% intro APR.
• Your credit should be good. That’s usually what it takes to get a 0% credit card.
• Credit card debt is unsecured. This means you own the title to your car right away, and the vehicle probably can’t be repossessed, even if you don’t pay. The exception is if your credit card agreement has a clause that allows unpaid purchases to be repossessed, but few cards have that.
• You can reap rewards. You could get a ton of cash back, points, or miles by using a credit card to buy a car. But you have to weigh this benefit against the potential cost of interest and high credit utilization.
• Some cards allow car loan balance transfers: Many credit card issuers allow balance transfers from auto loans to their cards. Balance transfers allow you to get a lower APR on existing debts.

The ideal circumstance to buy a car with a credit card is if you have enough money in the bank to pay it off right away. Then you can get a good rewards card, find a dealer that takes credit cards, pay your balance in full by the due date, and rake in the savings. You could even use a 0% credit card with rewards to get the best of both worlds. But if you can’t pay before regular rates take effect, you should go for a traditional auto loan instead.

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Can you pay bills with a credit card for points?

Yes, you can pay most bills with a credit card for points and many credit cards will earn you rewards for doing so. Expenses such as utilities, rent, medical bills and taxes are some of the opportunities to pay for bills with a credit card for points. You can only use a credit card to pay for other credit card bills if you qualify for a … read full answerbalance transfer. That allows you to move your existing balance to another card for future repayment (usually at the cost of a fee of around 3%). Most of the time, you won’t be able to make mortgage or rent payments with a credit card, either, at least not without going through a third-party app. But when you can do it, paying bills with a credit card can be a great way to earn points, miles or cash back. It can also buy you some time.

Just be careful not to use up too much of your credit limit between bills and other purchases. Less than 30% is best. Also, don’t use your credit card as an excuse to spend more than you would otherwise. If you don’t pay your bill on time and in full every month, you’ll end up spending a lot more on interest than you earn in points.

Here’s when you can pay bills with a credit card for points:

• Utilities: You should be able to pay your water, electricity, gas, cable, internet and other utility bills with your card. And you’ll get rewards just like any other purchase. The company may charge you a few dollars in convenience fees, though.
• Rent: Many landlords will accept rent payments using credit cards, but some won’t. Third-party services like Plastiq, RentShare and RentTrack allow you to make credit card payments when landlords don’t accept them directly. But their fees will probably wipe out any rewards you get.
• Medical bills: You can use a rewards credit card for minor medical expenses that won’t lead to a balance that bleeds into the next billing period. And you can use a 0% credit card to avoid interest on expensive health care charges. Some doctor’s offices and hospitals will take credit cards, but not all will.
• Taxes: Federal, state and local governments are happy to accept tax payments via credit card. But they’ll charge you a convenience fee of around 2% of the transaction cost, so that will definitely detract from any rewards you earn.
• Mortgage/car payments/student loans: You usually won’t be able to pay any of these bills directly with a credit card. But in most situations, you can use an online bill-payment service like Plastiq or a money transfer tool like Venmo. You’ll be able to earn rewards through these services, but they’ll be countered by the fees you’re charged.
• Other credit card balances and eligible loans: If you qualify for a balance transfer, you can use your credit card to pay off the balance owed on another credit card or loan at a lower interest rate. While some cards offer 0% introductory APRs on balance transfers, they generally come with a fee for each transfer. And you’ll want to pay off most of your balance by the end of that introductory period, or the card’s regular APR will apply to your balance immediately after.

The best time to pay bills with a credit card is when you get extra rewards or benefits for doing so. And those can take many forms.

For example, lots of credit cards offer big initial bonuses for spending a certain amount during the first few months your account is open. Some will give you free cell phone insurance for paying your mobile bill with your card. And many small business credit cards offer bonus points for common corporate bills, like office supplies and telecom services.

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Can I pay bills with a credit card?

You can pay many bills with a credit card directly, including cell phone bills, insurance premiums, magazine subscriptions, streaming services, cable and internet, medical bills, tax bills, and more. If you pay bills with a rewards credit card, you can also earn what amounts to a discount in the process. That said, look out for fees when paying bills with credit cards. Some companies tack on an extra fee if they have to process a credit card payment, and the fee may be enough to negate any rewards you’d earn in the process.… read full answer

You can’t pay every bill with a credit card though – at least not directly. Some bills that don’t generally accept credit cards for payment include rent and mortgage payments, car loan payments, and credit card bills. However, you can pay some of these bills with a credit card by using third-party services, such as Plastiq, PayPal, RadPad (for rent only), or Paytm. These third-party apps charge a fee to send payments with a credit card, ranging from 2% to 3%, so make sure the benefits outweigh this cost.

On that note, it’s worth considering whether it’s a good idea to pay your bills with a credit card, especially if the billers don’t generally accept credit cards. If you’re paying your rent or mortgage with a credit card because you don’t have the cash, it may work as a temporary fix, but it probably won’t be sustainable for very long. Also, if you make a habit of leaving a balance on your credit card, you will end up with interest charges, debt, and potentially high credit utilization. All of those things could hurt your credit score. If you’re using a credit card for the rewards-earning potential, just be sure that you’re earning more rewards than you’re spending in extra fees.

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