Is buying a used car with a credit card a good thing?
Excellent question. My answer may surprise you. Actually buying a used car using a credit card can be a very smart thing to do for two reasons.
- If you have a problem with the dealer you can dispute the transaction and have the credit card company help to resolve the issue for you.
- If your credit card offers you reward perks that you will use it can rack them up faster. For example I really love the Southwest Visa card for getting free flights anywhere they fly.
But this is only a good thing to do if you can afford to pay the card off within one to three months. The last thing you want is to carry a big balance on a credit card and have the bank jack your rate way up.