Vehicle Purchase With Plastic
By: ajeetkhurana | Posted: 04th October 2007
The purchase of a car is always a large investment. Making the decision to buy one usually has to be accompanied by a number of trips to the local bank to make inquiries about car finance. Getting a car loan may be easier than getting a mortgage, but it still involves a certain amount of running around and a lot of documentation. If one is going in for a secured loan, the number of documents required will be much more. If one has enough savings in the bank to fund the new buy, things couldn't get any better. But most of us lack sufficient liquid cash to pay upfront to the retailer.
However, car loans are not the only answer when car purchase is the issue at hand. One great option would be to avail of a low priced credit card and use it to buy the vehicle. Buying a car with plastic may not be the most popular way of going about it. But plastic can make life much easier. For starters, consider the need to get approved for a loan. That in itself tends to be a time-consuming process. However, if one is making use of plastic to buy the car, there is no need to get loan approval. Even the various discussions about loan rates and terms are easily eliminated when using a credit card to make the purchase. However, it would be prudent on your part to report to the card provider about the large purchase that one is about to make.
One advantage that a purchase by plastic would have over a purchase via a loan is that of the ease of repayment. A loan taken from the bank would necessitate making fixed monthly payments throughout the loan term. However, in the case of a credit card, one can simply choose the pay the minimum monthly payment. Thus, there is a lot less rigidity in the case of the latter.
Of course, even buying your dream car using plastic has some problems. For instance, even if your card starts out as being low-priced, it may not be this way beyond a certain period. Once the introductory low interest period is over, you might find yourself having to pay up a lot more money as interest on your card. At this point, you could consider shifting the balance to a cheaper card by using the balance transfer option. However, doing this a little too often could affect your creditworthiness and your chances of getting loans later on.
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Tags: credit card, money, inquiries, starters, liquid cash, local bank, loan rates, secured loan, car loans, car loan, loan approval, car purchase, issue at hand, getting a mortgage, loan term, car finance, dream car, rigidity, card provider