Which is better to buy a car with a credit card or a loan?
There is no absolute difference between the two, just suitable for different people. Details are as follows:
1 credit card purchase by installment
superiority
1, the procedure is simple. Buying a car by credit card mainly depends on the credit status of the owner. Generally, you can apply if your credit is good. The application procedure is relatively simple, just submit your ID card, proof of income and other materials.
2. There are various repayment methods. Like ordinary credit card repayment, cardholders can repay through mobile banking, manually or automatically.
disadvantaged
1, the handling fee is higher. Compared with bank loans, credit card car purchase by installment has no interest, but it will charge a handling fee, which is about 5% if it is 12 installment.
2. There are restrictions on the types of cars. Different banks, different types of credit cards and chartered brands are often different. If the cardholder wants to buy a car by installment with a credit card, he needs to choose the car brand of the credit card contract.
2 loan car purchase
superiority
1, low interest rate. The bank loan interest rate is lower than the credit card installment car purchase interest rate.
2. all kinds of cars. Bank loans cover all automobile brands, and they can be purchased as long as the applicant passes the examination and approval and the funds are released.
disadvantaged
1, high threshold. Bank loans are strict with applicants. In addition to personal credit information, there are many supporting documents, such as ID card, work certificate, bank account, social security certificate and so on.
2. There is a down payment. The down payment of bank loans is 30%, and the loan period is generally three years, which can be extended to five years at most.
To sum up, users who want simple operation and have no pursuit of car brands can choose credit cards to buy cars. Users who want to save interest, are not afraid of complicated procedures and have high comprehensive qualifications can choose to borrow money to buy a car.