Do You Earn Rewards on a Down Payment?
Home down payments cannot go on a card
A mortgage down payment is paid by wire or certified funds at closing, and lenders do not accept credit cards for it, so there are no rewards to earn. The same is true for most closing costs. Trying to route it through a third-party payment service is not permitted for mortgage funds.
Car down payments are limited
Many dealers cap how much of a down payment you can put on a card, often at a few thousand dollars, to avoid the processing fee, and some add a surcharge or refuse cards entirely. Any portion you do charge earns only the base rate, since car purchases are not a bonus category. The loan itself, and the monthly car payment, earn nothing.
When a small card down payment helps
If a dealer allows a few thousand dollars on a card with no surcharge, that can help toward a welcome bonus on a new card, which is the main reason to bother. Otherwise the rewards are minimal. Check the fee first, value points at a flat 1 cent, and see options in best cash back cards.
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