The vast majority of lenders won't let you pay these loan with a credit card and I can't say I blame them. Assuming your credit is good, allowing you to pay your 1.9% or similar low interest car loan with a credit card is a losing proposition, they won't make any money and would likely lose money on the deal after factoring in CC fees and other costs incurred servicing the loan.
If they're charging a % fee, it's probably not worthwhile. I thought someone posted a similar service one time that charges a flat fee, e.g., $15 to pay your rent or something along those lines. So if the charge was high enough, it could be worth your while. Can't remember the details of the service though.
Starting Score: ~500 (12/01/2008)
The fee for paying with a credit card kills this... but thanks for the site information OP.
Starting Score: EQ 675 | TU 688 | EX 702
These are treated as cash advances, hence the percentage fee.
This virtually never works out for any sort of reward boosting as the lenders stamp these out as soon as they find them (there have been some loopholes over time, but lenders zealously root them out with their datamining).
That said, if you have some need to goose monthly spend through your cards (*cough* Amex) then maybe it's worth the fee if you consider it to be a short-cut to a lender of choice. Certainly I've spent more in financing other tradelines for pure FICO purposes anyway.
@Watchmann wrote:Certain charges like life insurance, mortgage, car loans need to be paid with real money and not with credit....it is too dangerous for the lender and borrower to get on this sort of treadmill where it can spiral out of control in short order. Don't let rewards cloud basic good money control.
This...