Credit cards aren’t generally seen as the best option for borrowing money due to their high interest rates if you don’t pay your balance in full and on time. But a credit card can give you a lucrative edge over a personal loan if you need to finance a large purchase around the corner and don’t need long to pay it off.
The key is to use the right card for both the upcoming purchase and for your long-term needs. This could mean choosing a credit card that offers 0 percent intro APR on purchases, a good welcome offer and stellar rewards potential based on your ongoing spending.
If you’re looking for the best credit card for a large purchase, here are our hand-picked selections of the current top cards for the job.
Comparing the best cards for large purchases
Card Name
Best for
Intro APR offer
Rewards welcome offer
Wells Fargo Reflect® Card
Long intro APR offers
0% intro APR for 21 months from account opening
5%, min: $5
17.24%, 23.74%, or 28.99% Variable APR
Chase Sapphire Preferred® Card
Travel rewards
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
Chase Freedom Unlimited®
Cash back
0% Intro APR on Purchases for 15 months
Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days
19.49% – 28.24% Variable
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.
Hilton Honors American Express Surpass® Card
Hotel rewards
Earn 130,000 Hilton Honors Bonus Points after you spend $3,000 in purchases on the Hilton Honors American Express Surpass® Card in your first 6 months of Card Membership.
Capital One Spark Cash
Small business owners
Earn $750 cash back once you spend $7,500 in the first 3 months from account opening
Capital One Venture X Rewards Credit Card
Travel card welcome bonus
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
Top credit cards for large purchases
Best for long intro APR offers
Whether you need as much time as possible to pay off an upcoming purchase — or if you’ve already made that large purchase — the Wells Fargo Reflect® Card can give you as much breathing room as possible with its chart-topping intro APR offers. While the card is light on benefits, it does provide up to $600 of cell phone protection against damage or theft when you pay your monthly cell phone bill with your Wells Fargo card (subject to a $25 deductible; terms apply).
Pros
Few cards offer intro APR offers as long as the Reflect’s, and this is one of the only cards to offer such a long period on both purchases and balance transfers.
The ongoing APR can be relatively low for a popular rewards card, let alone for a balance transfer card.
Cons
It doesn’t earn rewards, so the long-term value is limited compared to rewards cards with shorter intro APR offers.
The 5 percent balance transfer fee ($5 minimum) is higher than several major competing cards’ transfer fees.
Best for travel rewards
The Chase Sapphire Preferred® Card packs some of the best potential travel rewards value on large travel and everyday purchases. Any upcoming large purchases can help you qualify for the welcome offer — one of the most valuable travel rewards bonuses on the market. Plus, if you regularly make big purchases, you can rake in remarkable value from the annual 10 percent bonus points on your previous year’s purchases.
Pros
The alternative payment plan feature may help you save on interest with a fixed installment fee instead.
For a mid-tier travel card, it carries stellar travel and purchase protections to insure your big purchases.
Cons
Its annual credit for eligible hotel stays through the Chase Travel portal isn’t as versatile or valuable as some competing cards’ yearly travel credits.
There is a $95 annual fee, although you could offset it through perks if you can squeeze enough value through the anniversary bonus point and annual Chase travel hotel credits.
Best for cash back
The Chase Freedom Unlimited® is a versatile, one-size-fits-all card that could be even more lucrative than 2 percent flat-rate cash rewards cards if you prioritize ongoing cash back on your everyday purchases.
Plus, the extra 1.5 percent cash back on up to the first $20,000 spent in your first year could add up to an impressive $300 back. This could be one of the most valuable cash back welcome offers for a no-annual-fee card — especially if you have large purchases planned.
Pros
Its solid intro APRs on purchases and balance transfers are competitive for a no-annual-fee rewards card.
It has some of the best perks and protections for a cash back card, including trip cancelation and interruption insurance, purchase protection and extended warranty coverage.
Cons
Depending on your typical spending, the flat rewards rate could be less lucrative than the 2 percent top flat-rate cards provide.
The extra 1.5 percent only applies for the first year, so its value might decrease after the offer ends.
Best for hotel rewards
The Hilton Honors American Express Surpass® Card can rack up substantial points across its impressive variety of reward categories across Hilton and everyday purchases. One of the most significant expenses of travel can be your hotel stay, especially if it’s an extended one. With the Hilton Surpass Card, you can earn an extra fifth night if you book your stay with points or for five consecutive nights. These bookings may also help you snag the impressive welcome offer.
Pros
You can safeguard eligible large purchases with the Amex purchase protection and extended warranty perks, and pay them off over time with the American Express Plan It alternative payment option.
It grants you Hilton Gold elite status, which comes with complimentary breakfast, higher reward earnings and room upgrades when available at Hilton properties.
Cons
While you can earn a large amount of points, your redemption options are generally limited to Hilton stays and experiences.
The annual Free Night Award could be hard to obtain if you don’t regularly make large purchases since it requires spending $15,000 in a calendar year.
Best for small business owners
The Capital One Spark Cash packs one of the best unlimited flat rewards rates for a cash back business card — 2 percent back on purchases — without charging an exorbitant annual fee. Plus, large purchases could help you earn the competitive welcome offer.
Pros
There’s no preset spending limit to cap the potential rewards you could earn on large purchases.
There are no foreign transaction fees, which could make this a better card for large travel expenses than several competing cash back cards.
Cons
Unlike traditional credit cards that give you the option to pay off your balance over time, you’re required to pay your card off in full each month.
It’s one of the only premium rewards cards without annual credits or other valuable perks that can help you make up for the annual fee.
Best travel card welcome bonus
The Capital One Venture X Rewards Credit Card offers a substantial welcome bonus that can be valuable towards future travel purchases, especially if transferred to a solid travel partner. Plus, you easily bank up rewards on large purchases with the unlimited, flat-rate 2X miles. The Venture X’s valuable perks also make its annual fee easier to recoup without dipping into your hard-earned rewards.
Pros
Every year, you can shave up to $300 off of your travel purchases through Capital One Travel with statement credits, and rack up 10,000 bonus miles on your account anniversary.
It’s one of the few cards that still offer return protection, which can be a big help if you need to get your money back from an eligible big purchase.
Cons
There isn’t as comprehensive a travel reward transfer partners list as some other issuers provide.
The annual fee could be difficult to justify if you don’t travel enough through the Capital One Travel portal to maximize the annual credits.
How to choose a card for large purchases
Choosing the best card for large purchases is a matter of finding the best balance of benefits, earnings, interest rates and other factors. For example:
Welcome offer: Getting a welcome offer and earning quick rewards can help you offset the cost of a large purchase. Make sure the spending requirement isn’t too high to qualify for the offer, or time your application with sizable purchases like an extended vacation or home renovation project.
Rewards rate: Rewards rates for different spending categories vary by credit card. To get the most out of your credit card, choose a card that offers generous rewards in the categories you spend the most, such as online purchases, groceries or travel.
Transfer partners: With some credit cards, you may increase the value of the points you earn through your everyday spending by transferring them to airline and hotel partners.
Annual credits: Check to see if a card’s annual credits offset its annual fee (and that you can use them with retailers you already shop with).
Benefits: Ideally, you’ll find a card with benefits that complement your lifestyle and help you save money. Some cards offer travel benefits, purchase protections, elite status and other perks. Understanding the kinds of benefits you want with your card can help you make the right choice.
Bankrate insight
For the most part, cards with annual fees tend to not have zero-interest offers, so narrow your search to no-annual-fee credit cards.
How Bankrate experts chose their cards for large purchases
Senior credit card editor Nouri Zarrugh considered many features when narrowing down his options for a credit card to use for an upcoming computer purchase. He ultimately chose the Bank of America® Customized Cash Rewards credit card for three reasons:
Bankrate staff insights
“When I was looking to buy a computer, I decided it was a great time to apply for a new credit card. Here is my thinking:
I could easily earn a sign-up bonus based on the cost, so I’d essentially get a big discount on the large purchase just for getting a new card.
I’d earn a decent chunk of rewards for the large purchase since the card I went with offered 3 percent back on online shopping (and I planned to purchase online)
I could chip away at the cost over time with the card’s intro APR offer (I could pay it off right away, but being able to pay over time helped lessen the mental ‘blow’ of spending a lot of money all at once).”
“When I was looking to buy a computer, I decided it was a great time to apply for a new credit card. Here is my thinking:
I could easily earn a sign-up bonus based on the cost, so I’d essentially get a big discount on the large purchase just for getting a new card.
I’d earn a decent chunk of rewards for the large purchase since the card I went with offered 3 percent back on online shopping (and I planned to purchase online)
I could chip away at the cost over time with the card’s intro APR offer (I could pay it off right away, but being able to pay over time helped lessen the mental ‘blow’ of spending a lot of money all at once).”
Nouri Zarrugh, Senior Editor, Credit Cards
Pitfalls of a credit card for large purchases
Make sure you weigh the advantages and disadvantages of using a credit card for large purchases before using it. While it can be beneficial by giving you more time to pay off the debt and earning points, it’s also a risky financial move. The biggest issue with this method can be paying back the balance. If you’re sure that it can be paid back either by the payment due date or within the timeframe of the 0 percent intro APR offer, it’s a solid strategy that can give you a boost in rewards points right away.
However, if money is uncertain due to emergencies or other circumstances, it’s an easy way to get into debt. The large, lingering balance will likely cause long-term monthly payments as well as incur interest, making those payments even higher. Should the purchases be reoccurring, it can be much harder to pay off the card’s balance.
It will also affect your credit utilization ratio. Experts recommend that card users keep their utilization ratio under 30 percent of their available credit limit. So, if your credit limit is $1,000, it’s best to utas under $300. Putting a large purchase on a credit card with a small credit limit will negatively affect your credit score.
Both these factors can make a huge difference when you have to use your credit later for renting or buying a home, getting a loan, getting low interest on a crew credit card or even applying to a job, in some cases.
The bottom line
Using a credit card for a large purchase can help you preserve cash and earn rewards in the process — but the best credit card for a large purchase shouldn’t just be for one event. Make sure the card you choose meets your immediate spending needs and helps you achieve your long-term financial goals.
