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Can you make a car payment with a credit card in Halton Hills?

Can you make a car payment with a credit card in Halton Hills?

Can you make a car payment with a credit card? This was a question posed by a customer last week. It was intriguing enough that our Halton Hills car loan team decided to put together this blog post about it.

The short answer to the question is, yes you can make a car payment with a credit card if your lender agrees.

The more pertinent question is, should you?

Making Halton Hills car payments with a credit card

If you missed a payment, don’t have enough money to make the payment or something else, using a credit card may seem like a way out. While it is certainly possible to make a payment this way, you should think carefully about whether you should.

If the alternative is missing a payment, you should definitely pay with a credit card. In all other situations, we recommend considering your options first.

Your options include:

Cash advance – If your car loan company won’t accept payment by credit card, you can get a cash advance on the card from an ATM. Interest rates are high and this should be a last resort but it’s better than missing a payment.

Money transfer – Using PayPal, Western Union or MoneyGram by using your credit card as a payment source can also work. Again, not all lenders accept payments this way but it’s definitely worth checking to see if they do.

Money transfer from other sources – If you have savings, other accounts or can borrow from a friend, you can transfer money from one account to another to make sure you can make the payment. This works the same as transferring money for any reason and can save interest charges on the credit card.

Credit cards and Halton Hills car loan payments

We only recommend making a car loan payment in Halton Hills with a credit card as a last resort. If your only alternative is that or missing the payment, paying with a credit card is the way to go.

In all other circumstances, we suggest avoiding it.

Credit card interest is expensive. Not only are you paying interest on the car loan but also on the money you put on your credit card. If you can pay it off in a short time, it won’t cost all that much but if it’s there for longer, it will cost.

This is even more important if you have to use a cash advance on your credit card. These are usually charged at much higher rates than normal credit card rates so should ideally be avoided at all costs.

Using a money transfer doesn’t incur the same interest as a cash advance but not all lenders will accept payments from these providers. You’ll have to talk to your lender to see what’s possible.

They may even have other ideas that could help!

If you need help or advice on anything to do with auto loans in Halton Hills, contact Car Nation Canada today, we can help!

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