A new buyer assumes many questions and one of them is can we buy a car with a credit card? Is it a good idea or is it even possible? There are numerous options for buying a new and used car for sale as:
- You are saving money from past few years and use all savings in purchasing
- Apply for second hand car finance as loan
- Take a personal loan
Most people choose the best option in which less interest amount occurs. Benefits of credit card finance for car purchase whether it’s a new or used car are:
- Lucrative offers by credit card Company, now a day’s credit card company follows the norm of balance repayment if you have managed to collect the money before the time. In this way, you can be free from EMI payments earlier and you have your dream car when you need it.
- You can choose the expected timeframe for loan repayments. Expensing savings in one go can create some future hurdles that you never thought.
- You must check your credit score and then decide to have a car with a credit card.
- You can choose the option of partial payments as some amount from savings and the rest amount from credit card loans.
- You know that you can afford to pay off the car quickly during the low introductory interest rate period, which is a much lower interest rate than you would get on a loan.
- You can have additional benefits from the reward point of credit card expenses amount.
- Credit card is a pre-approved line of credit and you don’t have to rush for applying for car loans in banks or financing companies.
- Many car dealers offer attractive offers of no deposit car loans that levy less burden on the buyer.
- In case you fall behind on your EMI payments, no repossession of car will occur unlike car loans from other loan methods.
- Choose for low rate options
As every aspect has some pros and cons too.
So we are also mentioning some disadvantages of credit card for investing a big amount are:
- Balance transfer not guaranteed
- Check your cash flow before making a big decision
- Don’t overburden your credit card with the outstanding balance.
- Check annual fees and revert rates associated with the card.
- Don’t get trapped in illusion or fake offers of the company.
Vita Cars 