Can You Make Car Payments With a Credit Car in Canada?

Can you make a car payment with a credit card if you miss a payment and need to make it before it is noted as a missed payment or if you wish to make an extra car loan payment?

 

Our vehicle lending crew was questioned about this last week. We get many of inquiries about using credit cards to buy cars and pay down payments, but not many about using them to pay monthly bills. It is therefore perfect for a blog article!

 

Making Car Loan Payments With Credit Cards

If the lender approves, the quick answer is yes, you can pay your monthly auto loan with a credit card.

 

But not every lender will take credit cards as payment. Those who do will usually charge a fee for using a credit card. A handling fee the business must pay to the credit card company will typically be passed on to you.

 

Therefore, using a credit card to pay will be more expensive than usual.

 

You might be better off utilizing a money transfer or even paying cash if you must or want to pay a car loan with a credit card.

 

Extra Costs of Making Car Payments With a Credit Card

As previously noted, businesses must pay a fee to accept credit card payments. These fees can change but typically represent a portion of the transaction value.

 

You will be responsible for paying whatever that expense is and whatever the lender determines as a reasonable fee for processing credit card payments.

 

That is not an inexpensive method of repaying your auto loan.

 

Additionally, you will be charged interest on the amount you charged on your card. Depending on how little you're paying, it might not be much. You're accruing interest each month on that payment if you're making larger vehicle loan payments or if you don't intend to pay it off right away.

 

Avoid Needing to Make Emergency Car Loan Payments

Nowadays, most vehicle loans demand automated payments. We strongly advise you to set them up for your auto loan if you haven't already.

 

Life is hectic. We're all dealing with something. Again, now and then, life likes to throw you a curveball. No matter what else is going on in your life, automatic payments make sure that your responsibilities are met.

 

No matter what is going on in your everyday life, payments are made as long as there is money in your account or you have an overdraft. Automatic payments, in our opinion, are exactly the kind of straightforward thing that can have a big good impact.

 

We would even go so far as to state that we believe they should be mandatory.

 

We hope this article helped answer your question of whether or not you can/should pay a car payment with a credit card. If you have any more questions, please click here to contact us!