The American consumer is comfortable making purchases in all financial formats. We buy groceries with a debit card. We pay utilities on-line. Some of us even use the old throw back – a paper check when making our latest acquisitions.

Yet, even though the intelligent shopper can cite their lenders, their bank account numbers, and even their retirement account holdings, most people do not stop to think they could actually buy a car with their VISA, Mastercard, or many of the other plastic credit cards in their wallets. Certainly it does not always make sense to use this buying plan so let us only consider those times when it is advantageous to the consumer.

To begin with, the prospective buyer of a new or used car intending to make their purchase with a credit card must have a good credit rating. Too, it is also most beneficial to acquire a new car with “Visa” if there is enough money in the bank to back up the purchase.

For those who are financially literate, the use of credit in general, and a credit card in particular, is strategically managed to provide optimum results for themselves and their family. The fiscally responsible are aware that most credit card companies have been forced to keep their consumer ‘audience’ by providing perks such as cash back rewards of up to 2% to their card holders. Now, consider, that if you buy a new car somewhere in the range of $20,000 with your rewards credit card, you have just saved yourself up to $400. That’s a hefty sum for the average household.

Literally thousands of credit card companies blanket this country – each offering enticements to the consumer for their use. For instance, certain airlines have aligned themselves with credit card companies offering travel miles for their use. (For example, Visa and Southwest Airlines have collaborated to create a Southwest Visa allowing the card holder to earn a free round trip flight for about $20,000 in purchase and can translate to a $500 round trip ticket.

A final consideration when using a credit card for an automobile purchase is many credit card issuers offer 0% interest rate deals. This introductory rate when can be very advantageous at your local car dealers. For instance, a $25,000 purchase at zero percent credit can free up $1250 at year’s end.

Good luck and savvy buying to those who will buy their automobile on credit. But, always, read the fine print.