Best Credit Cards for Car Repairs
July 2024
Car repairs are an inevitable part of owning a vehicle. Whether it's a minor repair or a major overhaul, it can be costly. One way to ease the financial burden is by using a credit card to pay for the repairs.
SuperMoney may receive compensation from some or all of the companies featured, and the order of results are influenced by advertising bids, with exception for mortgage and home lending related products. Learn more
Car maintenance is an unavoidable expense for car owners, and it can add up to a significant amount whether it's a minor repair or a major overhaul. One way to manage the financial burden is by using a credit card to pay for the repairs.
Not only does it provide you with the option to spread out the cost over time, but it can also give you access to rewards and benefits that help you save money.
Here, we'll guide you on how to choose the best credit card for car repairs and how to use it effectively.
Let's start with our picks of top credit cards:
How to choose the best credit card for car repairs
Before you apply for a credit card, consider these factors:
Rewards and cash back: Look for a card that offers rewards or cash back for purchases at auto repair shops or gas stations.
Interest rates: Choose a card with a low-interest rate to avoid paying more in interest charges.
Credit limit: Make sure the credit limit is high enough to cover the cost of the repairs.
Annual fees: Avoid cards with high annual fees that can negate any rewards or benefits.
Other benefits: Some credit cards offer additional benefits like extended warranties or roadside assistance.
How to use a credit card for car repairs
Once you've chosen a credit card, here's how to use it effectively:
Paying for repairs: Use the credit card to pay for the repairs directly at the repair shop. This will allow you to take advantage of any rewards or benefits offered by the card.
Maximizing rewards and benefits: If your card offers rewards or cash back, make sure to use it at gas stations or auto repair shops to earn the maximum rewards.
Managing credit card debt: Try to pay off the balance as soon as possible to avoid paying high-interest charges. If you can't pay off the balance right away, make sure to at least make the minimum payment to avoid late fees and penalties.
FAQ
Can I use any credit card to pay for car repairs?
Yes, you can use any credit card to pay for car repairs, but it's important to choose one that offers rewards and benefits for such purchases. Look for a card that provides cash back or rewards points for purchases made at gas stations or auto repair shops.
Should I pay off my credit card balance in full after using it for car repairs?
Ideally, you should pay off your credit card balance in full after using it for car repairs to avoid interest charges. However, if you're unable to pay off the balance in full, make sure to at least pay the minimum amount due to avoid late fees and penalties.
How can I choose the best credit card for car repairs?
When choosing a credit card for car repairs, look for a card that offers rewards or cash back for purchases at gas stations or auto repair shops. Also, consider the interest rate, credit limit, annual fees, and other benefits offered by the card. Compare several options before making a decision.
Bottom line
Using a credit card for car repairs can be a smart financial move. However, it's important to choose the right card and use it responsibly. By considering the factors mentioned above and using the card effectively, you can save money on car repairs and even earn rewards in the process.