HomeNEWSCredit card or financing? Which one is the best?

Credit card or financing? Which one is the best?

If you are planning to make a big purchase and are in doubt which one to use, credit card or financing? Don’t worry, we’ll solve your doubts about the differences between them, which is the best to use in each situation, how each of the two works and which of the two is the best for your purchase, whether it’s a credit card or financing.

What this article covers:

Differences between credit card and financing

Many must have wondered, what are the differences between credit card and financing? We will answer below the differences of each of them.

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Both credit and financing are lines of credit, but each with specific purposes. While credit can be used in any situation, financing is used for specific purposes, such as buying real estate, cars, electronic equipment, among others.

What’s the best between credit card and financing?

As we saw above, the best option between credit card or financing will depend a lot on the specific situation. If it is for simple purchases or covering a payment, the option to be chosen is the credit card. If the situation is the purchase of some good, then the best choice to be made is financing.

How the financing works

If you are in doubt about how the financing works, do not worry, we will explain about it below.
As mentioned before, financing is made for the use of purchases of goods, such as real estate, cars, among others. Another difference between the difference between the financing and the credit card, which then on the credit card the customer can already have a pre-approved limit as soon as he opens his account, due to his proof of income.

The financing takes a little longer to be released, due to the bank’s more detailed analysis of the client’s income and the value of the good to be purchased to see if they are compatible.

How the financing works

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If the client’s income is not enough, he can compose the income amount with family members to get the financing approved.

Something important that you need to know about financing is the fact that the good purchased through financing is given as guarantee, that is, until the end of the payment of the installments, the good is the property of the bank, but with its right of use.

If the installments are not paid, the good can be sold to settle the debt made with the bank. But if the installments are fully paid, the good is the property of the customer.

Is there any good credit card to buy a car?

The most recommended credit card for buying a car is MIT Itaucard Platinum Visa Card🇧🇷 This is the most recommended one due to the fact that its advantages are directed to vehicles, in addition to the fact that this card accumulates points that can be converted into a discount on the purchase of Mitsubishi 0km.

Is it worth buying a car on a credit card?

The idea of ​​buying a car on a credit card seems to be easy due to the greater ease of getting a credit card instead of financing. But it’s a deal not worth doing.

In addition to the card needing to have a limit equal to or greater than the vehicle you want to buy, you would probably have to make a down payment of at least half the value of the car to have a smaller number of installments to be paid.

But if you were to pay the purchase in full in installments, in addition to being a large number of installments, the interest rate would be too high that probably in the total purchase price it would give the value of vehicles of the same model.

The best option for purchasing a vehicle or other asset remains financing.

This is the main thing they need to know about credit cards and financing, which one to use in certain situations and which one is best for each one of them.

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