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Are you wondering if you should use your credit card to purchase a two-wheeler? Don\u2019t worry. You aren\u2019t the only one. Most buyers face this dilemma as paying through credit cards has its advantages and disadvantages. So, let us look at a detailed account of when it\u2019s advisable to get a two-wheeler on credit cardand when it\u2019s not.<\/p>\n\n\n\n
Opting for credit card EMIs to finance a two-wheeler purchase is ideal when you\u2019re looking to repay instalments quickly. Most credit card issuers provide tenures of up to 2 years. Hence, buying a bike on credit card will help you pay off EMIs and clear your dues quickly.<\/p>\n\n\n\n
Did you know that credit bureaus consider your credit card transactions while calculating your CIBIL score? Yes! Besides, your credit card usage does not include interest costs as long as you pay your outstanding bill in full by the due date. This means, if you want to improve your credit score, buying your bike through a credit card can is an excellent solution.<\/p>\n\n\n\n
When you make timely credit card EMI payments, you successfully boost your CIBIL score and qualify for future loans easily. However, you must avoid exhausting over 30% of your credit limit. This is because it can negatively impact your CIBIL score.<\/p>\n\n\n\n
Additional Read: <\/strong>CIBIL Score for Vehicle Loans<\/a><\/p>\n\n\n\n While credit cards can help you repay EMIs quickly, they also incur higher interest rates. Credit card EMIs can entail a 14-18% interest rate, along with processing fees which vary depending on your card issuer and tenure. Besides, with a smaller tenure, you may be required to pay bigger EMIs which can take large chunks from your monthly income.<\/p>\n\n\n\n On the other hand, you can get a two-wheeler loan<\/a> at significantly lower rates between 10-13%. With Tata Capital, you can avail of bike finance with an attractive rate starting at 10.75%. Moreover, with loan tenures of up to 5 years available, you can comfortably repay your loan with smaller instalments.<\/p>\n\n\n\n If you have an excellent CIBIL score, preferably 750 or above, you can qualify for a loan that finances 100% of your purchase costs easily. What\u2019s more, you can even negotiate loan terms to secure more attractive bike loan interest rates<\/a> and flexible EMI tenures.<\/p>\n\n\n\nCons of using a credit card<\/strong><\/h2>\n\n\n\n
1. High interest rates<\/strong><\/h3>\n\n\n\n
2. Get a better loan offer<\/strong><\/h3>\n\n\n\n