How I Bought a Car with My Credit Card, Earned a Bunch of Rewards and Didn’t Pay Any Interest

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Some car dealerships allow you to use a credit card to purchase a car. I did, and I earned a lot of rewards in the process. But be careful with your approach lest you get stuck with high interest charges.
Credit cards are one of my favorite forms of finance. If you manage them wisely, credit cards can help you improve your credit score. In addition, credit cards offer valuable fraud protection that can help you keep your money safe. But one of my favorite perks of using a credit card is points and miles.
The benefits of a Good Rewards credit card
A rewards credit card gives you the opportunity to make something special out of purchases you definitely had to make. Over time, all those trips to the grocery store, gas station, and takeout orders can add up to cash refunds in your pocket, or maybe points and miles you can redeem for free travel.
Want to learn how to travel for free with credit card rewards? This beginner's guide can help you get started. For now, read on to see how I recently bought a car with my credit card and racked up a nice pile of rewards in the process.
Step One: I saved in advance
I'm not a big fan of an auto payment. When my husband and I paid off our last car loan about five years ago, we took some of the money we paid to our previous lender each month and opened a savings account.
We both put the money we saved towards vehicle repairs as well as a future vehicle purchase. After several years of this habit, we had enough cash on hand to buy a used car when the time came.
Tip: A high-yield savings account can help the money you save earn more interest.
Step two: I chose the best credit card to buy a car
Eventually one of our vehicles died and it was time to buy a replacement for our family. Instead of getting a cashier's check from the bank to cover the purchase, I chose to pay for our new car with a credit card.
Now I would like to open a new credit card here to earn a sign up bonus with my purchase. But the timing wasn't right. I was eight months pregnant with a high-risk pregnancy in the middle of a global pandemic. Due to school closures related to COVID-19, I had two elementary school-age children at home 24/7. And I worked full time. (funny times!)
Needless to say, life was hectic. In the meantime, our need for a vehicle was there immediately.
Since I didn't have time to apply for a new credit card and wait, I opted for my Chase Sapphire Reserve. With my Sapphire Reserve, I would earn points for every dollar I spent on vehicle purchases. But if I redeem those points with any airline or Chase hotel partner in the future, I knew I could make a great travel deal and maximize my reward value.
Step Three: I've found a dealership that's willing to accept a credit card
I knew that not every car dealer would be willing to let me use a credit card to pay for my vehicle purchase. Businesses must pay processing fees when accepting credit card payments, sometimes up to 3% of the transaction.
The story goes on

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