In daily life, there are many payment methods for buying a car, including credit card installment and loan purchase. Which is better than these two repayment methods?

which is better, credit card installment or loan purchase?

There is no absolute difference between them, but they are suitable for different people. The details are as follows:

1. Advantages of car purchase by credit card

1. Simple procedures. 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, income certificate and other information.

2. There are various repayment methods. Like ordinary credit card repayment, cardholders can repay through mobile banking, either manually or automatically.

Disadvantages

1. The handling fee is higher. Compared with bank loans, there is no interest on car purchase by credit card in installments, but a handling fee will be charged, which is about 5% for the 12th installment.

2. There are restrictions on the types of cars. Different banks, different types of credit cards, contract car brands are often different. If the cardholder wants to use the credit card to buy a car by installment, he needs to choose the car brand of the credit card contract.

2. advantages of buying a car with a loan

1. low interest rate. The bank loan interest rate is lower than the credit card installment car purchase interest rate.

2. There are all kinds of cars. Bank loans cover all automobile brands, and as long as the applicants pass the examination and approval, they can buy them after the funds are issued.

Disadvantages

1. The threshold is high. 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. Bank loans have a down payment of 3%, and the loan period is generally three years, which can be extended to five years at most.

to sum up, users who want to operate simply and have no pursuit of car brands can choose to buy cars by credit card. 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.